Want to Buy Dogecoin? What to Know Before You Purchase – NerdWallet

For years, dogecoin ( pronounce dowzh·koyn ) existed on the fringes as a jest cryptocurrency that traded for less than a penny. But by jump 2021, the shiba inu-themed coin found its stride — and its put on major cryptocurrency trade platforms. Of the cryptocurrency platforms reviewed by NerdWallet, seven presently offer dogecoin : Gemini, SoFi Active Investing, Webull, Robinhood, eToro, Coinbase and Binance.US. These platforms made it easier than ever to trade the coin, and in May 2021, dogecoin had reached a price of more than 70 cents and a market capitalization of $ 88.8 billion. To put that in context, at dogecoin ’ mho May top out, it would have ranked among the 100 largest companies in the S & P 500 in terms of marketplace cap. Its price has since slid significantly, but it ’ s silent among the 10 largest cryptocurrencies by grocery store cap. But do n’t equitable buy into the ballyhoo. Before you add dogecoin to your portfolio, make sure you know what you ‘re getting into. here are three things to consider before buying dogecoin.

What gives dogecoin value?

To understand what gives any cryptocurrency prize, it ’ s significant to know the basics of blockchain technology, and what led to the formation of altcoins like dogecoin. For context, investors may see value in bitcoin because it was created to be a newfangled, better way to record fiscal transactions. Ethereum investors frequently discuss the network ’ sulfur ability to run bright contracts — agreements that execute mechanically if sealed conditions are met — as its main value driver. The scores of early cryptocurrencies and tokens that have been developed typically search to improve upon an existing coin, or provide a new, blockchain-based solution to an existing trouble. then why was dogecoin created, and what gives it value ? Billy Markus, co-founder of dogecoin, has written that he started dogecoin as a joke to bring some carefreeness, forgivingness and generosity to the crypto worldly concern. Dogecoin devotees frequently use social media to hark back to some of the coin ’ sulfur guiding principles, including jacob’s ladder, fund-raise, support of one another, cryptocurrency advocacy and making memes. And the dogecoin crowd has walked the walk : In 2014, the Dogecoin Foundation raised more than $ 50,000 in dogecoin to help the Kenyan drink water crisis, and that same year, a group of dogecoin holders raised $ 25,000 in dogecoin to help send the Jamaican bobsled team to the 2014 Olympics. But possibly the project ’ s primary message is summed up well by a common dogecoin Reddit rallying cry, which notably forms an acronym of DOGE : “ Do only Good Everyday. ” thus, dogecoin doesn ’ triiodothyronine have any real intended function beyond being a driver of good in the earth, and it wasn ’ metric ton created with the intention of enriching any person or clientele. Without a true way to measure the currentness in any traditional common sense, its measure — in terms of U.S. dollars — depends wholly on the commercialize. In other words, dogecoin will be worth whatever person else is uncoerced to pay for it at any given here and now. While this is one component of just about any security traded on the secondary market, dogecoin ’ mho miss of any traditional rate means its price is entirely pendent on these commercialize forces.

How will dogecoin fit into your portfolio?

Given their volatility, emerging condition and moo regulation, all cryptocurrencies are inactive considered option investments, which investment rules of thumb say should make up the smallest part of your investment portfolio. The traditional advice says you should try to contribute to tax-advantaged retirement accounts, such as an IRA or, if available, a workplace 401 ( thousand ). If you ’ re already contributing to or maxing out either of these accounts, you could consider opening a auxiliary taxable brokerage report, deoxyadenosine monophosphate well. And what can you invest in with these accounts ? A good place to start may be using these accounts to invest in highly diversify, low-cost index funds. They may not be adenine arouse as dogecoin — don ’ thyroxine expect any 13,000 % gains here — but they ’ re a lot less explosive and, in the long terminus, returns are more reproducible. Over the past respective decades, the S & P 500 ’ south annualized average comes out to about 10 %. If you ’ ve already built a diversify portfolio of low-cost index funds via tax-advantaged accounts or taxable brokerage accounts — and have a design to regularly contribute to these accounts — you may be in a place to add alternative investments like cryptocurrencies to your portfolio, but be sure you amply understand the risks involved.

How much dogecoin can you afford?

To determine how much to invest in dogecoin, ask yourself this : If you lost your integral investing tomorrow, would you distillery be financially sound ? certain, you ’ vitamin d be bummed, but would you placid have your core portfolio of diversify, long-run investments and enough cash on bridge player to pay the bills ? If the answer is no, then you ’ re probably investing more than you can afford to lose. Generally speak, it ’ s knowing to earmark money for alternative investments only if you ’ ve paid off high-interest debt, built up healthy cash savings and already created a diversify portfolio.

Where to buy dogecoin

You ’ ll find dogecoin on a wide scope of cryptocurrency exchanges, but of the crypto brokers and exchanges reviewed by NerdWallet, the following offer dogecoin. As with any cryptocurrency, be surely to check if the platform allows you to access your own digital wallet, which means you can send and receive dogecoin. Some brokers lone let you buy and sell dogecoin with USD .

Broker/exchange	Can send/receive dogecoin ?
Gemini	Yes .
SoFi Active Investing	No .
Webull	No .
Robinhood	No .
eToro	Yes, but limited .
Coinbase	Yes .
Binance.US	Yes .

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Learn More	Learn More	Learn More
Fees 0.5 % – 4.5 % varies by type of transaction ; other fees may apply	Fees 1.25 % per trade	Fees 0.5 % – 3.99 % depending on payment method acting and platform
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The author owned BTC and ETH at the time of publication. NerdWallet is not recommending or advising readers to buy or sell BTC, ETH or any other cryptocurrency .

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