A beginner guide on how to buy and sell Dogecoin
July 20, 2022 10:44 AM
Since Dogecoin's launch, a lot of investors have been interested in learning how to buy and sell cryptocurrency as well as how simple it is to do so. Thankfully, we know the answers to all of these questions and more. Welcome to the DOGE buying and selling beginner's tutorial.
The steps to buying Dogecoin are as follows:
Step 1: Think About Your Investment Goals for Dogecoin
You must use prudence while investing as a newbie. Investments in cryptocurrencies are extremely hazardous, and Dogecoin is especially volatile due to its infinite supply.
Investors must keep adding to their coin purchases for the price of Dogecoin to rise or even remain stable. If not, the quantity of DOGE quickly increases, depreciating the value of every currency already in circulation.
To deter users from keeping Dogecoin for a long time, one of its inventors specifically removed the limit on the currency's supply.
Think about your total financial condition, investment portfolio, and risk tolerance when determining how much to invest. In general, experts advise not investing more in cryptocurrency than you can afford to lose.
Step 2: Select an exchange for cryptocurrencies.
You must create an account with a cryptocurrency exchange, where buyers and sellers come together to trade cryptocurrencies for dollars, to buy Dogecoin. Popular exchanges like Coinbase, Binance.US, and Kraken provide both a basic, user-friendly interface with higher costs and a more sophisticated trader platform with reduced fees.
Despite recent growth in popularity, not all cryptocurrency exchanges now support Dogecoin. If you desire to purchase DOGE, be sure it is offered for sale on any exchange you are considering.
Step 3: Choose a payment method.
Generally, you must have funds on your exchange or brokerage account before you can start trading cryptocurrencies and other tradable digital assets alike.
The exchanges often allow you to deposit funds from a checking or savings account. Debit/credit cards are accepted by some, along with wire transfers, PayPal transfers, and so on.
However, before attempting to make the payment, take notice of the transaction fees associated with each method since this might increase the cost and danger of investing in cryptocurrencies.
Step 4: Place Your Dogecoin Order
You may buy Dogecoin after your money is in your account. Enter the ticker symbol DOGE or search for Dogecoin on the trading or buying site of the exchange. After selecting your transaction option, enter your desired investment amount in dollars or the number of Dogecoins you wish to purchase.
How to Sell Dogecoin
It's a simple method to sell your Dogecoin if you want to. You will input the desired selling price in your holdings on your cryptocurrency exchange or brokerage platform. After that, your order will be processed.
If you invested in Dogecoin for a profit, you'll probably need to pay capital gains tax. The consequences of not paying taxes on your cryptocurrency earnings might be severe, including high penalties. Consult a tax expert if you're unsure of how to record your Dogecoin earnings.
Even though selling DOGE is permitted on all cryptocurrency exchanges, just a select number are the best options: Robinhood, Kraken, and the Binance app.
Looking for the safest location to purchase Bitcoin? We have compiled the top cryptocurrency exchanges that have been deemed the safest places to purchase BTC.
You have the option of keeping your Dogecoin in a cold or a hot wallet apart from your exchange. While cold wallets are actual hardware that you may detach from, hot wallets are digital and connected to the internet, making them considerably more vulnerable to hackers.
But cold wallets are often more expensive than hot wallets, and you also face a higher risk of losing or forgetting the password required to access your cold wallet, which would prevent you from accessing your coins.