If you’re wondering how to buy Dogecoin on eToro, you’re in the right place.
Dogecoin is a mem-based digital currency that was officially launched on December 6, 2013. It was created by Billy Markus, a programmer from Oregon, and Jackson Palmer from Australia. The name Doge comes from the popular internet meme featuring a Shiba Inu dog. Despite its origins as a joke or meme-based cryptocurrency, DogeCoin gained significant popularity particularly in 2021 due to social media trends and endorsements by influential figures like Elon Musk.
Here are some key features of Dogecoin:
- Decentralization: Like other cryptocurrencies, Dogecoin operates on a decentralized network of computers meaning it is not controlled by any single entity or organization.
- Blockchain Technology: Dogecoin transactions are recorded on a public ledger called the blockchain confirming transparency and security.
- Proof of Work (PoW): It currently uses a proof-of-work consensus algorithm. The algorithm involves miners solving complex mathematical problems to validate transactions and add them to the blockchain.
- Supply Limit: Unlike Bitcoin, Dogecoin has a large total supply with over 130 billion coins in circulation.
- Inflationary Nature: It has an inflationary supply model. This means that a fixed amount of new Dogecoin is created with each block and this supply continues indefinitely. The inflationary model encourages the use of Dogecoin in daily transactions.
- Community and Culture: The digital currency is well-known for its active and friendly community. The community often engages in charitable activities and tipping, using Dogecoin for microtransactions.
- Low Transaction Fees: It has very low transaction fees compared to some other cryptocurrencies.
Now, let’s see the performance of Dogecoin over the last few years before we get to our main objective of how to buy Dogecoin on eToro.
Performance of Dogecoin
In 2019, Dogecoin saw relatively little movement and remained between $ 0.002 and $0.003. However, the digital currency gained momentum in 2020 and ended the year around 0.005. In 2021, Dogecoin saw huge gains and reached an all-time high of $0.74. Overall, Dogecoin has delivered strong returns for investors who bought in during its earlier years but has been a riskier proposition in recent times.
Why Choose eToro To Buy Dogecoin
Here are a few reasons why eToro is a suitable platform for buying Dogecoin:
- Accessibility: eToro makes it easy for both beginner and experienced investors to purchase Dogecoin and other cryptocurrencies. Their platform is user-friendly and designed to have a low barrier to entry.
- Variety of tools: In addition to allowing spot trades of Dogecoin, eToro offers features like copy trading, social trading, and cryptocurrency wallets. This gives users more ways to engage with and learn about Dogecoin.
- Regulation: As a publicly-traded company, eToro is regulated in multiple jurisdictions which provides some investor protections. the broker is subject to financial regulations, unlike less-regulated brokers.
- Liquidity: eToro supports large volumes of Dogecoin trades. Their liquidity allows users to buy and sell their positions without major price impact easily. This is important for active or frequent traders.
- Educational resources: eToro’s platform contains educational content, market analysis, and community features that can help users understand cryptocurrency investing and the fundamentals of Dogecoin in particular.
How to Buy Dogecoin on eToro
Buying Dogecoin on eToro involves several steps. Here’s a general guide on how to buy Dogecoin on eToro.
If you don’t have an eToro account, you’ll need to sign up on the eToro platform. This involves providing the necessary information and completing the account verification process.
After creating an account, deposit funds into your eToro account using a supported payment method. eToro typically supports various payment options such as credit/debit cards, bank transfers, and e-wallets.
Search for Dogecoin
- Use the search bar on the eToro platform to find Dogecoin (DOGE) in the list of available cryptocurrencies.
Place an Order
- Once you’ve located Dogecoin, click on it to view its details. On the Dogecoin page, you should see options to “Trade” or “Buy.” Click on the relevant button.
- Specify the amount of Dogecoin you want to buy and set any additional parameters such as stop-loss or take-profit levels if desired.
Review and Confirm
- Make sure your order details and information are correct. After confirming the details, you can proceed to place the order.
- Once you place the order, eToro will execute it at the current market price. You can monitor the status of your order in the Portfolio section.
Hopefully, you know how to buy Dogecoin on Etoro and begin your trading journey. However, it’s vital to know that cryptocurrency trading is subject to high risks and price volatility. If you are interested in Bitcoin, check our guide to buying Bitcoin on eToro.