If you’re interested in safely acquiring Dogecoin (DOGE) on the eToro platform, note these valuable tips. Initially created as a joke in 2013, Dogecoin has gained significant popularity in cryptocurrency. Sporting the famous “Doge” meme as its logo, it quickly became a sensation on various social media platforms, and how to buy Dogecoin on eToro was widely searched.
Although Dogecoin started as a humorous endeavor, it has become a legitimate investment option for successful investors. By August 2021, its market capitalization had surpassed $30 billion. As a result, DOGE became widely recognized and was listed on major cryptocurrency exchanges, including eToro.
eToro is a well-known social trading and investment platform that allows users to buy and sell various assets, including cryptocurrencies like Dogecoin. The platform boasts a user-friendly interface and provides a range of tools tailored to investors, making it a popular choice, especially for those new to investing.
For new traders and investors, there is often a preference for low-cost and entertaining coins such as Dogecoin ($DOGE). This psychological inclination towards penny stocks extends to the crypto world, where buyers are drawn to affordable and fun options. If you want to purchase Dogecoin on eToro, the following guide will help you navigate the process smoothly.
What is Dogecoin?
Dogecoin (DOGE) is a digital currency that emerged in 2013 as a playful and comical alternative to Bitcoin. With its iconic Shiba Inu dog logo, Dogecoin has gained a dedicated following within the cryptocurrency community. Created by Jackson Palmer and Billy Markus, DOGE operates on blockchain technology derived from Litecoin and utilizes the same proof-of-work algorithm. This similarity makes Dogecoin more accessible and cost-effective compared to Bitcoin.
Dogecoin was built upon the existing protocols of Litecoin and LuckyCoin, utilizing the scrypt technology for its proof-of-work algorithm. Unlike Bitcoin, Dogecoin does not employ the SHA-256 cryptographic hash function for mining. Instead, it utilizes specialized ASIC and FPGA devices, making it less susceptible to mining by regular computers.
While Dogecoin may not enjoy the same level of popularity as other cryptocurrencies, it has developed a dedicated following among crypto investors. It even garnered media attention when SpaceX announced plans for a “completely Dogecoin-funded rideshare mission to the Moon in 2022.”
Some consider Dogecoin a less secure and decentralized version of Bitcoin, often called “Bitcoin’s silly cousin.” It is seen as less innovative compared to other cryptocurrencies. With 129 billion DOGE in circulation and its current value below $1, Dogecoin is often considered a fun investment.
However, figures like Elon Musk, the founder of Tesla, have expressed ironic optimism about Dogecoin’s future. Musk once stated that “the most ironic outcome would be that Dogecoin becomes the currency of the Earth in the future.” Mark Cuban, a prominent businessman and owner of the NBA’s Dallas Mavericks, has also shown hope that Dogecoin could become a serious player in cryptocurrency if more people adopt and use it.
Cuban believes that if Dogecoin gains wider acceptance and usage, its annual inflation of 5 billion coins may be consumed, potentially increasing its value.
Unlike many cryptocurrencies, Dogecoin has no maximum supply limit, meaning an unlimited number of coins can be produced. Despite its origins as a joke, Dogecoin has developed a strong and supportive community. It has also gained attention from influential figures like Elon Musk, who has tweeted about it multiple times and even temporarily changed Twitter’s logo to Dogecoin’s.
Dogecoin can be bought and sold on various digital currency exchanges, including popular platforms like Binance, Kraken, and Coinbase. Additionally, eToro offers a user-friendly platform for purchasing Dogecoin and other cryptocurrencies.
Purchasing Dogecoin on the eToro platform is a simple process. Here is a step-by-step guide to help you get started. Please note that you need to have an eToro account to proceed. Creating an account, verifying, and depositing funds is similar on both the mobile app and the browser version.
Create an eToro account
Visit the eToro website and click the “Start Investing” button to create your account. Provide your email address, choose a username and password, and accept the terms and conditions. Click “Create Account” to complete the process.
Verify your eToro account
To verify your account, follow the verification link sent to your email. Provide your full name, date of birth, address, and phone number. You may also need to submit a photo ID (or driver’s license) and answer questions about your investing experience.
Deposit funds into your eToro account
Click the “Deposit Funds” button and select your local fiat currency. Enter the amount you want to deposit and choose your preferred payment option, such as bank transfer or PayPal. Complete the transaction to add funds to your account. Remember that bank transfers may take longer to process than other payment methods.
Buying Dogecoin on the eToro Mobile App
Use the search function
Once you are logged into your account on the eToro mobile app, locate the search bar at the top of the dashboard. Enter “Dogecoin” or “DOGE” to find the cryptocurrency.
Click the “Trade” button
After locating Dogecoin in the search results, click the “Trade” button next to the cryptocurrency.
Complete the transaction
Ensure you are on the “Buy” page by checking the title at the top of the open window. Enter the desired amount you want to use to purchase Dogecoin. Review the transaction details and click “Open Trade” to complete the purchase. Dogecoin will then appear in your portfolio.
Buying Dogecoin on eToro via your browser
Use the search function and click “Trade”
After logging into your eToro account on the browser version, use the search bar to find Dogecoin. Once you locate it, click the “Trade” button next to the cryptocurrency.
Complete the transaction
Ensure you are on the “Buy” page by verifying the title at the top of the open window. Enter the desired amount you wish to use for buying Dogecoin. Review the transaction details and click the “Open Trade” button to finalize the purchase. The purchased Dogecoin will be visible in your portfolio.
Here is a step-by-step guide on how to create an eToro account and buy Dogecoin
1. Visit eToro’s website and click the “Join Now” button.
2. Fill in your personal information, including your name, email address, and phone number.
3. Create a username and password for your account.
4. Verify your identity by providing a copy of your government-issued ID and proof of address. This step is necessary to comply with Know Your Customer (KYC) regulations.
5. Once your account is verified, deposit funds into your eToro account using a payment method of your choice. eToro accepts various payment options, including bank transfers, credit/debit credit and debit cards,, and e-wallets.
6. After depositing funds, use the search function on eToro’s platform to find Dogecoin.
7. Once you’ve located Dogecoin, place an order to buy the desired amount of Dogecoin. Review the transaction details and confirm the purchase.
- You have two options: Store your Dogecoin in eToro’s built-in wallet or transfer it to an external wallet for added security.
What Sets Dogecoin apart?
Dogecoin has garnered attention as the “people’s coin,” transforming ordinary individuals into millionaires. Celebrities, including billionaire CEOs, musicians, and Hollywood stars, have joined the Dogecoin craze. Elon Musk, known as the “Dogefather,” has been an avid promoter of Dogecoin and frequently tweets about it. The partnership between SpaceX and Canada’s Geometric Energy Corporation even named their lunar mission DOGE-1.
Mark Cuban, the popular Shark Tank host, has spoken about using Dogecoin to teach economics to children. He and his son purchased $30 worth of Dogecoin when trading at 26 cents, believing it was a better investment than a lottery ticket. Kevin Jonas, a member of the Jonas Brothers, tweeted about Dogecoin, fueling rumors of his investment in the cryptocurrency.
Other notable figures such as Gene Simmons, Vicky-Lee Valentino, Angela White, and more have supported Dogecoin by investing in or expressing enthusiasm for its potential.
These high-profile endorsements and the meme coin frenzy that peaked in 2021 significantly influenced Dogecoin’s popularity. It gave rise to other trending meme coins like Floki and Shiba Inu.
However, not everyone has been able to sell at the peak and realize substantial profits. Glauber Contessoto, for example, invested $250,000 in Dogecoin when it was trading at 4.5 cents and watched it soar to over $2 million in the market cap before experiencing a decline. Dogecoin’s creator, Billy Markus, sold off all his tokens in 2015, which could now be worth millions.
Suppose you’re considering adding Dogecoin to your long-term crypto investment or trading it based on Dogecoin price and fluctuations. In that case, eToro provides a convenient platform to manage and monitor your portfolio, including your Dogecoin holdings.
Pros and Cons of Buying Dogecoin on eToro
Dogecoin became available for trading on eToro in May 2021, providing access to over 25 million investors on the platform. Here are some advantages and some potential risks and drawbacks to consider when using eToro:
Pros:
– eToro offers a dedicated e-wallet to store Dogecoin, Bitcoin, XRP, and other popular cryptocurrencies.
– The platform allows for copy-trading, enabling users to replicate the strategies of successful traders with a single click.
– Trading fees on eToro are reasonably low.
– The user-friendly mobile trading app allows for convenient trading on the go.
– eToro does not charge deposit fees, and various payment methods, including credit cards, debit cards, bank transfers, and e-wallets like PayPal and Skrill, are accepted. The minimum initial deposit is $10, and subsequent deposits are as low as $1.
Cons:
– eToro operates with USD as the base currency for all trades. If you are trading with other currencies like Euro or GBP, you will incur conversion fees in PIPs (percentage in point).
– Inactivity fees of $10 monthly are charged if you do not log into your eToro account for one year.
– The minimum withdrawal amount is $30, which may limit small withdrawal transactions.
Important considerations before buying Dogecoin in the eToro trading platform
1. Fees: eToro charges a flat 1% fee for trading all crypto assets, including Dogecoin. This fee is added to the market price, resulting in a slight loss when opening or closing a position. Transferring Dogecoin from eToro to the eToro Money crypto wallet incurs a fee of 2% with a minimum of $1 and a maximum of $100, plus additional blockchain fees. Transferring Dogecoin from the eToro Money wallet to other wallets is subject to blockchain activity fees, typically under a dollar.
2. Wallets: Cryptocurrencies like Dogecoin are stored in digital wallets. When using eToro, the platform is a custodian for your digital assets. However, to have complete control over your Dogecoin, you can transfer them from your eToro account to your personal Dogecoin wallet.
How to sell your DOGE coins on eToro
Selling Dogecoin on eToro is a straightforward process. To sell your Dogecoin, open a new order and click the “Sell” option. Enter the amount of Dogecoin you wish to sell, and the transaction will be executed.
However, certain limitations exist when trading cryptocurrencies buy Dogecoin on eToro. Coin-to-coin trading is unavailable, so you cannot directly exchange Dogecoin for another cryptocurrency like Bitcoin. Instead, you would need to sell your Dogecoin for cash and then use that cash to buy another cryptocurrency.
While you can transfer your coins from your eToro account to a digital wallet, it is important to note that this transfer is one-way. You can send your coins from eToro to your digital wallet by specifying the wallet’s address. However, you cannot return coins from your wallet to your eToro account. Once the coins are transferred from eToro, they are outside the eToro ecosystem.
Conclusion
eToro provides a user-friendly platform for buying Dogecoin and diversifying your cryptocurrency portfolio. With its straightforward account creation process, verification procedures, and various payment options, getting started on eToro is convenient. The platform offers access to a wide range of cryptocurrencies, including Dogecoin, and allows easy tracking and managing of your investments.
While investing in cryptocurrencies like Dogecoin can be exciting, it’s important to approach it cautiously. Cryptocurrencies are highly volatile and speculative assets, so conducting thorough research and investing only what you can afford to lose is crucial.
eToro’s low trading fees, option for copy-trading, and the ability to trade various cryptocurrencies make it an attractive choice for both experienced and first-time investors. The platform provides additional tools such as technical charts, sentiment gauges, and a social trading network for a more engaging trading experience.
However, it’s important to note that eToro has certain limitations, such as the inability to trade coin-to-coin directly and the one-way transfer of coins to external wallets. Understanding these limitations and considering your investment goals and risk tolerance is essential.
eToro offers a convenient and user-friendly platform to buy and trade Dogecoin, allowing you to participate in the cryptocurrency market and potentially diversify your investment portfolio. Remember to stay informed, make responsible investment decisions, and keep track of the ever-changing dynamics of the cryptocurrency market.
