Michelle Legge
By Michelle LeggeHead of Crypto Tax Education
Updated May 17, 2024
This article has been fact checked and reviewed as per our editorial policy.

How to Buy Dogecoin in 2024

The OG memecoin remains a popular choice for crypto investors. If you want in on the action, follow our complete guide on how to buy Dogecoin in 2024.

The most straightforward method to acquire Dogecoin (DOGE) is through a crypto exchange, where you can buy DOGE using US dollars or other cryptocurrencies. However, it's essential to understand the investment and to use a reliable exchange before adding Dogecoin to your portfolio.

Decide whether to buy Dogecoin

Before you buy Dogecoin, you need a basic understanding of what you’re actually investing in, including:

  • Technology: Utilizes proof-of-work mechanism. Dogecoin continues to use a proof-of-work system to verify transactions on its blockchain, which is slower and more energy-consuming than proof-of-stake systems used by other cryptocurrencies.

  • Volatility: Dogecoin's price is highly unstable, often due to its limitless supply and significant influence from social media buzz and public speculation.

  • Pricing: Typically trading well under one dollar, Dogecoin is among the cheaper cryptocurrencies, with its highest recorded price at 74 cents in 2021.

  • Transaction costs: The average fee for a Dogecoin transaction is below 10 cents, making it one of the less expensive cryptocurrencies to transact.

Dogecoin is a speculative and highly volatile asset. As with all investments, it should only be considered if you are financially stable and can afford to potentially lose your investment. 

Conventional investment advice recommends limiting high-risk assets like Dogecoin to no more than 10% of your total portfolio. If your portfolio already includes a variety of index funds and you regularly contribute to these accounts, you might be ready to diversify into alternative investments such as cryptocurrencies.

Read next: Is crypto a good investment?

Choose where to buy Dogecoin

Purchasing Dogecoin is easiest on a centralized exchange. Being a popular cryptocurrency, Dogecoin is commonly listed on major exchanges. Ensure that the chosen platform allows you to manage a personal digital wallet for sending and receiving Dogecoin, as some brokers restrict transactions to fiat currencies like USD. Dogecoin is available for purchase on exchanges such as:

Alternatively, Dogecoin is traded on decentralized exchanges, which facilitate peer-to-peer dealings. These platforms typically have lower fees but demand more technical knowledge and are best suited for experienced crypto investors.

Read next: What’s the best crypto exchange?

Pick a payment method for Dogecoin

There are primarily two ways to fund your Dogecoin purchase:

  1. Cash: Most exchanges accept fiat currencies such as the U.S. dollar. You'll need to set up an account on your chosen exchange and link a bank account to deposit funds.

  2. Cryptocurrencies: If you possess other digital currencies, you might be able to exchange them for Dogecoin. Check your chosen exchange to ensure it supports trading pairs with Dogecoin.

Read next: How to buy Dogecoin on eToro

Store your Dogecoin securely

After buying Dogecoin, you need to store it securely. You have a few options here, but the best practice is to store it in a cold, offline wallet:

  • Exchange: Many users keep their digital assets on the exchange where they bought them. This is convenient but risky, as demonstrated by the FTX and FTX.US collapses.

  • Hot wallet: For enhanced security, a digital wallet is advisable. Hot wallets are online constantly, providing convenience but potentially increasing hack risks.

  • Cold wallet: Cold wallets remain offline, offering security at the expense of accessibility. This is considered the safest way to store crypto you’re not actively trading.

Read next: What’s the best way to store crypto?

How to sell Dogecoin

To sell your Dogecoin, simply navigate to your holdings on your preferred cryptocurrency exchange, specify the amount you want to sell, and submit your order. If your Dogecoin investment has made a profit, be aware that you may owe Capital Gains Tax on these earnings. 

Read next: Dogecoin taxes

Should I buy Dogecoin?

Originally created as a satirical nod to cryptocurrencies, Dogecoin is now regarded more seriously by many investors. Nevertheless, it remains a high-risk investment. Financial experts typically advise allocating only 3% to 10% of your investment portfolio to cryptocurrencies.

The amount you choose to invest in Dogecoin should reflect your financial stability, risk tolerance, and current financial goals. For instance, if your retirement savings are lagging or you lack an emergency fund, it would be prudent to limit your investment in Dogecoin. 

Conversely, if you are financially secure, on track with your retirement savings, and have substantial savings, you might consider a larger allocation to Dogecoin.

Integration Page CTA DOGE

FAQs

How does Dogecoin work?
How do I use Dogecoin?
How can I earn with Dogecoin?
What’s the connection between Dogecoin and Elon Musk?
Disclaimer
The information on this website is for general information only. It should not be taken as constituting professional advice from Koinly. Koinly is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.
loading