With its playful canine mascot and endorsements from billionaires like Elon Musk and Mark Cuban, it’s not hard to see why investors love Dogecoin. Since its creation as a Bitcoin spoof in 2013, the cryptocurrency has gained cult status, with enthusiasts even declaring themselves the #DogecoinArmy.
And buying in early has made some very rich: Those who brought in before the meme coin exploded in popularity in late 2020 saw the value of their investments rocket by more than 7,000% to 77 cents by the middle of 2021. But Dogecoin has big risks too. It dropped to less than 14 cents by the end of the year.
So be careful not to invest more than you can afford to lose. If you’re ready, here is how you can get your paws on Dogecoin.
5 Steps to buy Dogecoin
You can buy Dogecoin by opening an account with a crypto exchange like Coinbase, Binance.US and Kraken. You can also access Dogecoin through investment apps like Robinhood, SoFi and Webull. Here is all you need to know about buying Dogecoin in 5 simple steps.
Decide how much to invest in Dogecoin
Financial planners generally recommend investing no more than 3% to 5% of your money – an amount you are willing to lose – in highly volatile assets such as cryptocurrencies.
Here are some more points to consider when deciding how much to invest in Dogecoin:
Unlike a stock or bond, Dogecoin doesn’t pay dividends or interest. It is not backed by any substation assets, so if the public loses its fascination with Dogecoin, the price could in theory fall all the way to zero.
There is no limit on how many Dogecoins can be mined. There are already more than 100 billion Dogecoins. In the long run, Dogecoin’s price will rise only if investors buy Doegoins faster than miners can produce them.
Dogecoin’s hype-driven rallies can be short lived. In mid-2021 Dogecoin’s price doubled in less than a month after Tesla founder Elon Musk tweeted he would host Saturday Night Live, setting off rumors he would plug it on the show. As it happened, Musk called the meme coin “a hustle” and within hours, its price plunged by nearly 30%.
With all this in mind, here’s how to get started on Dogecoin.
Choose a crypto exchange or investing app
While not the only way to access Dogecoin, working through a cryptocurrency exchange is one of the easiest ways to buy Dogecoin, Bitcoin, Ethereum and other crypto. A crypto exchange is a digital marketplace where …….