Dogecoin is one of the most popular cryptocurrencies in the world. It has a market capitalization of more than $18 billion, making it the ninth biggest coin. This is notable since we now have more than 18,000 cryptocurrencies according to data by CoinMarketCap. In this article, we will explain what Dogecoin is and some of the safest ways to buy it.
What is Dogecoin?
Dogecoin is a proof-of-work cryptocurrency whose goal is to help people make personalized peer-to-peer payments in an easy way. The coin can also be used as a means of payment by retailers who accept it. Today, some popular sellers like Tesla have started to accept Dogecoin in their stores.
Still, like Bitcoin, Dogecoin’s volatility has made it difficult for companies to accept it as a means of payment. For example, between May 2021 and April 2022, the coin was down by more than 65%. As such, sellers who accepted it have seen that amount of value disappear.
Therefore, most of the Dogecoin in circulation today is held by people as an investment. One of the most prominent holders of the coin is Elon Musk, the founder of Tesla and the world’s richest person. He is actually credited for taking the coin mainstream. So, here are some popular ways to buy Dogecoin.
Buy Dogecoin from a cryptocurrency exchange
A cryptocurrency exchange is a financial company that allows people to buy, store, and sell their digital coins. In just a few years, the industry has gotten so popular, with companies like Binance being valued at over $300 billion. Coinbase, the second-biggest exchange, is valued at more than $40 billion while FTX has a valuation of more than $32 billion. These firms have millions of customers from around the world.
There are two main types of cryptocurrency exchanges. There are centralized exchanges like Binance that are owned and managed by individuals. At the same time, there are decentralized ones like Uniswap and MinSwao that are governed by holders of their tokens. Anyone can be a holder of the tokens and take part in their governance.
To buy Dogecoin in an exchange, you just need to create an account and verify it. Then, you should deposit your funds using the available options like a credit and debit card or bank transfer. After depositing your funds, you can then easily select Dogecoin and the amount you want to spend and then execute the order. Also, you can read more about how to buy dogecoin with PayPal instantly in some of the top exchanges such as Coinbase and eToro.
Buy Dogecoin CFD
Another option of safely Dogecoin is to buy it in the form of a contract for difference (CFD). A CFD is simply a tracking asset that gives a person an exposure to an asset without owning it directly. When you own a Dogecoin CFD, it means that you don’t really own the coin and can’t spend it. But you will benefit as its price rises.
CFDs are not recommended for everyone. The reason is that CFDs are risky assets because they are mostly offered using leverage. Leverage is a certain amount of money that your broker gives you to trade. If your trade works out well, you will make more money. At times, you can lose more money than what you have in your balance. CFDs are safer than other options because they cannot be stolen or hacked.
The next option of buying Dogecoin is using a peer-to-peer exchange. This is a financial company that lets people buy and sell cryptocurrencies directly. It acts as a safe place to trade these coins because of its escrow feature.
The process of using a P2P exchange is easy. First, find an exchange like PaxFul and Local Bitcoins and create an account with your private details. Second, after being verified, find a seller who matches your preferred price.
Next, select the amount of Dogecoins that you want to buy and send funds to the seller using their preferred option. Many sellers like receiving funds directly to their mobile wallets while others love doing it in their bank accounts. As you do this, your Dogecoins will be in a safe escrow account. Finally, you will receive the funds once the seller confirms that they have received the cash.
There are other ways of buying Dogecoin. For example, you can buy DOGE in the form of a tokenized coin, which comes with inbuilt leverage. For example, a DOGE 3x token means that its price will rise by 3x when the price of Dogecoin rises by 1%. You can also buy Dogecoin in one of the popular DeFi platforms. Before you buy, we recommend that you do your analysis to verify why you want to buy it. For example, you can do a technical and fundamental analysis of these.