Dogecoin (also known as DOGE) is a fairly popular cryptocurrency with a low barrier to entry. Thanks to famous figures like Elon Musk talking about it regularly, more and more people have started to move into trading it, including new traders who have just learned about crypto.
But how do you get started, and should you start with Dogecoin? Here is what you should know.
What is Dogecoin?
Dogecoin is based on the Doge internet meme, a picture of a specific Shiba Inu used for all kinds of jokes and ironic meme content for over a decade. Dogecoin itself was meant to be a light-hearted joke, but it has become a viable currency thanks to its spikes in popularity.
Since Dogecoin can still be used like any form of crypto, that means that it can be bought, sold, traded, and gifted in the same way. Because of this, many people buy and sell it for profit or use it as an alternative to actual money.
Why Should I Use Dogecoin?
Dogecoin is an interesting cryptocurrency to start with – it is one of the more notable examples of a currency with no coin cap, so coins will continue to be generated forever with no hard limits. Unlike something like Bitcoin, this means that the price will never be completely steady.
This can make it seem risky to buy, but it might actually be a good way to test the waters of crypto trading. The price changes often, but the low value means that a single coin may only drop as much as AUD 0.02 over three days, so it can be a good way to experiment with how the market works.
How Do I Buy Dogecoin?
Getting hold of Dogecoin is easy – you usually want to use a cryptocurrency exchange, a platform that allows you to directly buy and sell crypto for real money or other crypto types. In this case, you want one that supports Dogecoin (DOGE)
You will also need a digital wallet actually to store the coins that you earn. Some platforms, like Swyftx, offer one as part of the exchange, meaning that you can get both at the same time if you decide to sign up there. Otherwise, you will need a separate one.
Buying Dogecoin is as simple as finding the currency on your exchange and purchasing as many coins as you want. The exchange rate between your chosen currency and the coins will vary based on the relative value of both, but you get full control over how many you buy.
Once you are done, you will have the coins, ready to spend or use however you want.
Trading for DOGE
If you have another cryptocurrency, you can usually trade it for Dogecoin on the exchange too. Again, the exchange rate depends on the value of both coins, so it will not always be the same. A single coin of one crypto might only be worth 0.25 of a Dogecoin or worth four times as much.