How to Buy Dogecoin9-min read

Dogecoin (ticker DOGE) is a cryptocurrency that originated as a joke in 2013. Based on the popular “doge” meme using Shiba Inu as its logo, it is an open-source digital currency developed by Bill Markus and Jackson Palmer. Originally envisioned as a light-hearted crypto asset, Dogecoin went on its greatest bull run in 2021 when it peaked at its all-time high at $0.70. That event put Dogecoin as the 10th biggest cryptocurrency by market capitalization. While it has slipped by rank during the bear market of 2022, it has continued to accrue interest from the social-media-savvy crowd.

Part of this crypto’s success is because of the attention it gets from Elon Musk. The Tesla founder is considered the primary reason behind Dogecoin’s bull runs. However, that dependence on the community’s emotions also makes Dogecoin extremely volatile crypto. Every time the Dogecoin price has increased parabolically, a major correction has followed soon after. That makes this cryptocurrency more suitable for day traders with crypto trading bots and less for novice investors or those apprehensive about the crypto market’s volatility. Read on for a comprehensive guide on how to buy dogecoin and how to use it to profit.

Where to Buy Dogecoin in India – Best Dogecoin Brokers?

Dogecoin’s popularity among crypto investors quickly earned it the attention of major cryptocurrency exchanges. Following are the best Dogecoin brokers that have received good reviews and provide good trading experience to both novice and veteran crypto investors.

Libertex allows for Dogecoin trades via MetaTrader4. Whilst originally launched as a forex and stock broker, Libertex has quickly rose through the ranks among the top exchanges for crypto trades, due to the unmatched user-friendliness of its platform, quicly allowing even the most novice users to catch up with even the most seasoned investors, thus levelling the playing field. Moreoer, Libertex further ncentivises traders with recurring giveaways, special prizes and competitions, such as their famous draw allowing new and existing customers alike to win up to 500 BTC. 

Binance is the world’s leading cryptocurrency exchange, with over 9 crores of registered users and support for more than 700 cryptocurrencies. Furthermore, it was the first broker to list Dogecoin in 2019. Binance Futures launched DOGE/USDT perpetual contract up to 50x leverage in 2020 and enabled cross-margin trading for DOGE/BTC and DOGE/USDT pairs in 2021. Binance is our top choice of Dogecoin Brokers because it is a complete cryptocurrency exchange. It allows Indian users to buy cryptos using INR, provides staking opportunities to investors, and provides tools for both advanced and novice cryptocurrency traders.

Passive investors who want to make constant gains through Dogecoin can open a flexible savings account on Binance and earn up to a 1% Annual Percentage Return (APR). More active investors can instead choose the High-Yield option to become liquidity providers and earn up to 4% APR. Complementing these features is the robust user interface. While it has many tools, users would not have difficulty understanding them.

How to Buy Dogecoin in India and Abroad

Here are the simple steps to buy Dogecoin in India and abroad:

• Choose a Dogecoin Broker
• Create a crypto account on the platform
• Deposit the funds
• Search for Dogecoin
• Buy Dogecoin

Buy Dogecoin with Paytm

Indian cryptocurrency investors can buy Dogecoin with Paytm on Binance or Coinbase. All they need to do is connect Paytm online wallets to the platform, accept Bitcoin and then swap it for Dogecoin with sellers on the platform.

The advantage of this process is that it is familiar. However, it can take time because you must first buy Bitcoin and swap it for Dogecoin.

Buy Dogecoin with PayPal

You can buy Dogecoin with Paypal in India through Binance but that is only possible on Binance P2P – Binance’s Peer-to-Peer cryptocurrency exchange. You must first connect to Binance P2P, buy Bitcoin from a seller using Paypal and then swap the Bitcoin for Dogecoin on the official platform at 0.1%.

While this process is simple, it is cumbersome. Binance doesn’t yet support INR deposits.

Step by Step Tutorial to Buy Dogecoin

Here are the steps to buy Dogecoin on a cryptocurrency exchange:

• Choose a Dogecoin Broker
  First, you must choose a Dogecoin broker. The list we have provided has been well researched. Select one after examining other intrinsic factors such as security and fiat support.
• Create a Crypto Account on the Platform
  The second step is creating a crypto account on the platform. Go to the official website. For this blog, we suggest Binance. And enter your details. You’ll be asked to provide your KYC details as the regulatory bodies require.
• Deposit Your Funds
  Deposit the funds using fiat. Since INR is unavailable, we suggest using USD deposits. Select the credit or debit card option and enter the USD amount you want to deposit. An equivalent amount of INR would be deducted from your account to top up your crypto portfolio.
• Search for Dogecoin
  Click on the “Buy Crypto” button. In the dialogue box, enter the amount of EUR you want to exchange,
• Buy Dogecoin
  Double check your entries and then press on pay. An equivalent amount of Doge will be deposited in your account

Choosing the Right Dogecoin Exchange for You

When choosing the right Dogecoin exchange, you must keep the following points in mind.

• • What kind of Dogecoin trader are you?
    The first point is the question you must ask yourself – “what kind of Dogecoin trader are you?” Are you a long-term trader who sees Dogecoin as a long-term investment? Or are you a day trader who wants to play with the volatility of this memecoin to draw out maximum profits.

Crypto trading platforms can be complex or easy to use. Complex platforms, while not entirely beginner-friendly, provide a host of technical indicators and tools to analyze the markets before investing. On the other hand, simple trading platforms allow you to make quick swaps. Pick wisely.

• The credibility of the Dogecoin exchange
  Learn about the developers and the history of the Dogecoin exchange. Have they ever been hacked? Do they have proper security measures in place to protect your crypto assets? How liquid are these centralized exchanges?
• Customer Service provided by the cryptocurrency brokers
  Go to Trustpilot or other websites and peek at the customer services of these Dogecoin exchanges. You will learn whether calling is available or only live chat support is applicable. It is a good way to know how the crypto exchange deals with crises.
• Sign-up process
  Understanding the sign-up process is especially crucial. We recommend choosing another if a cryptocurrency exchange delivers services without user details.
• Paper trading facilities
  Paper trading facilities consist of demo trading where a crypto exchange lets you create a demo account and trade using that for practice.
• Regulated brokers
  India’s stance regarding cryptocurrencies isn’t that open. Therefore, you need to find a regulated broker. For instance, Binance, the leading crypto broker on our list, has received approval from multiple bodies worldwide, including VASP, FinCEN, and others.

Vetting Our Recommended Brokers

Our financial and tech experts have thoroughly vetted the brokers listed in this guide.

• Account Creation and Testing
  Our experts have tested the accounts and learned about the requirements and the withdrawal times.
• Review of the Investment Portfolio
  We have also reviewed the list of cryptos provided and the investment portfolio created on the platform.
• Review of Terms and Conditions
  Our financial and legal experts have gone through the terms and conditions of each platform individually to ensure that they match India’s regulatory landscape regarding crypto.
• We take your feedback into account
  Since cryptocurrency is not a fully regulated niche because of the many blowbacks it receives from the gatekeepers, we always refresh our list by taking your feedback into account.

Cryptocurrency is a major investment that requires thorough research. Therefore, before investing, you must check out the reviews of the exchanges that we and other sites provide before depositing your money. That is one of the critical ways to choose what you consider the best cryptocurrency trading platforms.

How to Store Dogecoin Safely

Storing your Dogecoin holdings inside the crypto wallets of the Dogecoin brokers we have listed is a good option. Binance and Coinbase will provide ample security to your crypto portfolios. Furthermore, your holdings on the platform are also insured but if you want more security, you can explore bitcoin wallets. Select among the cold wallets to store your Dogecoins offline or Hot wallets for online storage.

Dogecoin Price

Dogecoin is a memecoin whose value solely depends on the overall sentiment about the crypto market. Since this crypto has no use cases (outside of Tesla merch), it has performed with extreme volatility in the past. That is, it has closely followed the price action of Bitcoin.

Dogecoin opened 2022 at $0.17 before retracing marginally and bouncing to find resistance at $0.20. It then slowly followed a downtrend where $0.17 became its resistance. However, after the Terra-triggered crypto crash, Dogecoin’s price slumped below $0.1. At the time of writing, this token is accumulating in the $0.060 range.

Dogecoin Bull Runs

Dogecoin went through the biggest bull run in early 2021 when the value of DOGE rose by a massive 8600% between January to May. Elon Musk, Snoop Dogg, and Mark Cuban’s social media mention led to this cryptos uptick.

The second bull run happened again that year in July, and the Dogecoin Price had a 200% uptick, going from $0.17 to $0.34 before retrace. The bounce afterward led to another bull run in September, and the value of DOGE went from $0.19 to $0.28.

Dogecoin Bear Markets

2022 marked the end of any bull run for Dogecoin. It has been following a downward trend ever since entering this year. The retrace was aggravated further when Bitcoin dropped below the $19k level in June. During that time, Dogecoin hit the 2022 bear bottom of $0.053.

Elon Musk and Dogecoin: The Crypto Love Affair

Elon Musk has been attributed as the primary growth factor for Dogecoin. He first commented on Dogecoin in 2019, tweeting

“Dogecoin might be fav cryptocurrency.”

But it was his words in 2021 when he said that he was working with Dogecoin developers to improve the network that led to the first mega bull run of this memecoin. It led to speculations that Elon Musk is the elusive Dogecoin whale that holds 28% of the total digital currency.

However, Elon Musk again mentioned Dogecoin in his SNL appearance, which had the opposite effect on the world’s first memecoin – it plunged its price. Then 2022 came, and Elon Musk declared that Tesla would accept Dogecoin as a payment for the newest models.

The relationship between Elon Musk and Dogecoin has been a combination of inspiration, respect, and, sometimes, disdain. However, when the wider crypto market plummeted, wiping out $2 billion worth of cryptos from the market, Elon Musk stood by his favourite cryptocurrency. He urged traders not to sell their cryptocurrencies.

However, the latest developments have not been positive, as Elon is being sued for $258 billion for running a pyramid scheme to support Dogecoin. Those who have filed the case claim that SpaceX and the Boring Company have deliberately pushed the price of Dogecoin up by 36,000% for two years before letting it crash.

However, it would be better for investors to do their own research rather than get swept away by Elon’s words.

Automated Dogecoin Trading

Crypto trading robots are revolutionary innovations in the world of trading that you can program and let the trades happen automatically without getting involved. This way of trading has helped companies like BlackRock to stay ultra-rich even when the global market is down.

Based on the latest advancements in machine learning technology, a crypto trading bot helps accurately predict market trends. It is especially critical for crypto like Dogecoin, which is volatile and suitable for day traders. By reacting instantly to market changes, these bots can help intra-day traders get the most benefit from the volatility of the crypto market.

Some bots, such as Dogecoin Millionaire, have been developed to predict fluctuations specifically in the Dogecoin market and make optimal investments, accordingly, at the most strategic time. Unfortunately, due to high demand after word spread out of the number of new millionaires the bot had supposedly produced, new registrations are limited to meet capacity. You can bypass waiting times by clicking here and signing up instantly.

How Do Crypto Trading Bots Work

Automated crypto bots work by executing trades on behalf of a user based on pre-defined rules and strategies. These bots use various indicators and technical analysis tools to identify profitable trades and execute them automatically. The user can set parameters for the bot to follow, such as the amount to trade, stop-loss and take-profit levels, and the frequency of trades.

The bots can be programmed to monitor market conditions and execute trades 24/7, which is especially useful for traders who cannot monitor the market all the time. They can also backtest trading strategies using historical data to assess their performance and refine them. However, it is important to note that automated crypto bots are not fool-proof, and their performance is dependent on the quality of the strategy and the market conditions.

Top Crypto Trading Bots

You may find our choices for best crypto bots on their dedicated page.

Our experts have tested these trading bots for safety, useability, and accuracy.

The technology is still new. Therefore, it is of utmost importance that you first assess the bots before signing up. For more information, you can explore the bitcoin bots available in the Indian crypto market on our review site.

Is Dogecoin a Good Investment?

Dogecoin has achieved upticks of more than 8000% in the past. However, as of yet, it remains a volatile cryptocurrency. That said, for intraday day traders who are willing to take a risk, high profits can be made by investing in Dogecoin.
Currently, the Dogecoin price is accumulating at lower ranges. Experts are saying that the bottom for this crypto is in, making it the right time for those interested in buying the dip. As for when to sell this crypto, it is important to watch out for Elon Musk’s tweets or the overall price trend of Bitcoin.

Taxes on Dogecoin

According to the 2022 Budget, income generated from digital assets, including Bitcoin, is taxed at the fiat rate of 30%. It is subject to both capital gains tax and income tax. You can learn more about it on the official website.

How to Sell Dogecoin

Selling Dogecoin is a process that consists of going to the crypto portfolio, opening your Dogecoin holdings, and clicking on the sell option. If it is a P2P platform, you must first find a seller.

What to Know Before Buying Dogecoin?

Dogecoin is a volatile cryptocurrency that has experienced parabolic gains followed by massive plunges. Reacting to them at the right time depends on the cryptocurrency exchange you choose. Therefore, going through the review sites before investing is crucial. Furthermore, it is also critical to stay in touch with the developments of the platform.

Investing Responsibly

Dogecoin is an extremely volatile cryptocurrency. Investors should pay heed to assess their risk tolerance before investing. Reacting to the price actions at the right time is crucial to draw benefits from the potential upsides of this cryptocurrency.

Latest News on Dogecoin

Blockchain analytics firm, IntoTheBlock, has reported that a majority of Dogecoin (DOGE) holders are in profit, with 56% profitable on their investments, while 34% are sitting on losses, and 10% are breaking even. On the other hand, only 29% of Shiba Inu (SHIB) holders are profitable, with 67% holding underwater. Meanwhile, the beta version of the highly anticipated layer-2 scaling solution, Shibarium, has gone live on the Shiba Inu ecosystem. The new protocol is built on Ethereum’s smart contract platform, similar to Polygon, and will use Bone ShibaSwap (BONE) as its governance token.

Conclusion

Dogecoin is the world’s first memecoin whose price action moves along the overall sentiments of the broader crypto market. It has experienced huge gains in the past, but the retraces that came after have also been profound. Therefore, investors must pay heed before investing.

Key Takeaways:

• Dogecoin is a volatile cryptocurrency.
• It reached an all-time high in 021 and rose by 8600%.
• Elon Musk’s Tweets are partially responsible for DOGE’s price action.
• Dogecoin has been registered in major cryptocurrency exchanges.
• Day-traders can draw the most benefit from this memecoin.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.