Nobody took Dogecoin seriously when it was launched in 2013 by software engineers Billy Markus and Jackson Palmer.
We’re about to dive into:
- What makes Dogecoin interesting.
- Pros and cons of buying Dogecoin on eToro.
- How to buy Dogecoin on eToro, step-by-step.
- What to consider before buying Dogecoin.
- Alternative places to buy Dogecoin.
Don’t have time to read all that? No worries, we’ve got you covered.
Sponsored
Scroll down a bit, and we’ll outline two quick ways to start. That said, we’d encourage you to read the full article to learn about the risks.
There are two methods to access the cryptocurrency and purchase after you open and fund your eToro account – let’s have a look!
Method 1: Search Function
The first approach is fast, getting you directly to the buy option on the platform.
- Step 1
On your eToro Dashboard, type in “DOGE” on the search bar.
- Step 2
From the pop-up window, indicate the dollar amount (or $DOGE units) you want to buy, and click “Open Trade.”
The picture above is for educational purposes only and does not reflect the current price of Dogecoin.
Method 2: Discover
It’s a longer method, but you can compare Dogecoin’s price performance to other cryptocurrencies in real time.
Step 1
Navigate through the eToro Dashboard and click “Discover.”
Step 2
Select “Crypto.”
Step 3
Dogecoin will feature in the “Daily Movers” segment on high-volume days. It’s a common member of this category since it’s the most traded meme coin. If it’s not on top displayed cryptocurrencies, you can click “View All ” and go through the list. Click “Doge” from the menu.
You can also navigate to the “By Market Cap” section and click “View All” if DOGE isn’t on the top featuring coins of the day.
Step 4
After selecting DOGE, you are directed to the cryptocurrency’s page, complete with analytics like price performance and stats on the trading volume and market dominance. Click “Invest” for the buying window to pop up.
What Makes Dogecoin Special?
It took the stage as the ‘people’s coin,’ turning Average Joes into millionaires. Celebrities, including billionaire CEOs, musicians, and Hollywood stars, joined in on the wave.
The self-proclaimed “Dogefather,” Elon Musk, can’t stop tweeting about it. SpaceX and Canada’s Geometric Energy Corporation lunar mission was even called DOGE-1.
Mark Cuban, a popular Shark Tank host, talked of using DOGE to teach children economics. Together with his son, they bought $30 worth of the meme coin when it was trading at 26 cents. He argued it was “better than a lottery ticket.”
Kevin Jonas tweeted about Dogecoin, sparking rumours that the Jonas Brothers singer and guitarist had invested in it.
Gene Simmons parked six figures worth of investment into it.
Line of Duty actress Vicky-Lee Valentino made her purchase and took a rockstar pose on Twitter with the caption #Dogetothemoon.
Adult star Angela White has been HODLing her bag since 2014.
Such names were a huge factor behind the meme coin frenzy that hit a crescendo in 2021. It even spawned trending imitators that have ballooned in valuation, like Floki and Shiba Inu dog coins.
Of course, not everyone can sell at the top and book their profits.
Such is the case of one Glauber Contessoto, who snapped up $250,000 of it at 4.5 cents. He watched his investment soar to over $2 million and rode it back down.
Dogecoin’s creator Billy Markus sold off all his tokens in 2015, and they could now be worth millions.
Want to add it to your long-term crypto investment or make bets on intraday price swings? eToro makes it easy to manage and track the performance of your portfolio – and you can keep your Dogecoin stash on it.
Pros and Cons of Buying Dogecoin on eToro
Dogecoin began trading on eToro in May 2021. 25 million+ investors on the platform can buy or sell the meme coin.
Is it right for you?
Here’s a look at the value and pitfalls of the platform.
Pros
- It has a separate e-wallet to hold your Dogecoin, BTC, XRP, and other popular cryptocurrencies.
- You can copy-trade other high-performance traders with one click
- Trading fees are moderately low (more on that in the next section).
- User-friendly mobile trading app available for you to trade on the go.
- No deposit fees. You can deposit funds through multiple payment methods, including your credit card, debit card, bank transfer, and e-wallets like PayPal and Skrill. The minimum deposit is $10 the first time you fund the account; after that, it’s only $1.
Cons
- There’s only one base currency for the account. All trades are in USD, so if you trade from other currencies, e.g., Euro or GBP, you must convert at a fee. This fee is in PIPs (percentage in point/ price interest point).
- If you don’t log into your eToro account for one year, a monthly $10 inactivity fee will be charged.
- The minimum withdrawal amount is $30, which can be limiting for small withdrawals.
How to Buy Dogecoin on eToro: Step-by-Step Guide
The social trading platform makes it easy for beginners to get their hands on Dogecoin in just a few clicks. However, let’s first dot the i’s and cross the t’s by digging into what it takes to invest through the platform.
Things to Consider Before Buying
Fees
eToro charges a flat 1% fee for trading all crypto assets on the platform – Dogecoin included. The platform adds the fee to the market price, i.e., the Bid-Ask spread from the order books in the system.
You’ll notice that you’re instantly at a “loss” when you open a new position. That’s because of the 1% fee you paid when buying or closing the position.
Transferring Dogecoin from the platform to the eToro Money crypto wallet incurs a fee of 2% of the transaction size. This transfer has a minimum of $1 and a maximum $100 fee. There’ll also be a blockchain fee added to it.
You’ll get an estimate when initiating the transfer.
Transferring Dogecoin from the eToro Money crypto wallet to other wallets incurs a fee based on blockchain activity. Here, it’s out of the control of eToro and depends on transaction and network conditions. It’s usually under a dollar, regardless of the transfer size.
Wallets
Cryptocurrencies like DOGE are stored in digital wallets. While on eToro, the stock trading platform and a crypto exchange will be a custodian. Transfer your digital assets from the eToro account into your Dogecoin wallet to control them completely.
Not your keys, not your coins, right?
eToro Money app can hold your crypto assets, including Dogecoin. This app is linked to your account on the platform.
Note that it’s an e-wallet that you can use to hold crypto and is different from the main eToro mobile app used for investing in stocks, indices, and crypto.
To get custody of your Dogecoin, you’ll need to first transfer it from your account in the platform into the eToro Money app:
- Install and sign into the app. Ensure you have met all the requirements to withdraw crypto from the platform.
- Navigate to your portfolio on the eToro platform or the eToro mobile app.
- Click “DOGE.”
- On the list of open trades displayed, click on the one you want to transfer.
- The “Edit Trade” screen pops up. Click the “Transfer to Wallet” option.
- Check the details, and click “Transfer to eToro Money Wallet.”
That submits a withdrawal request, and “pending transfer” will be displayed on the trade. You can cancel the request at any time before eToro approves it. On approval, the Dogecoin is sent to your eToro Money crypto app
If you want to transfer the Dogecoin to another independent cryptocurrency wallet, follow these steps:
- On your mobile phone, launch the eToro Money crypto app.
- Navigate to the “Crypto” tab.
- Tap on “DOGE”
- Tap “Send”
You’ll be directed to the page to indicate how much DOGE you want to send and the recipient’s public address. While you can manually type in this address, it’s recommended that you scan the recipient’s address QR code by tapping the camera icon on the app. That way, it can detect the address automatically, and you avoid the risk of an incorrect entry. - Confirm the address, and tap “Send.”
- eToro will send out a verification code to your mobile phone. Enter this code into the app and tap the “Verify” button.
That initiates the transaction, which you can track on the Dogecoin blockchain explorer.
Market Situation
Is Dogecoin a good investment for you? Before adding it to your portfolio, you should note that it’s a volatile asset susceptible to significant price fluctuations.
During the “crypto boom” in 2017, the cryptocurrency rose from $0.00021 to a May 21 peak of $0.0042, a whopping 1,890% gain. It led Ethereum, Cardano, and other trending altcoins during its meteoric rise. However, this was promptly followed by a pullback over two weeks, which saw it lose 75% of its value.
On Jan 28, 2021, a series of tweets by Elon Musk and the WSB meme-stock market craze saw it rally 1,100% in just two days. Market expectations were that Elon Musk would pump the token on his “Saturday Night Live” appearance. That saw Dogecoin clock a market high of over $0.70 per token across cryptocurrency exchanges.
However, it was followed by a drop of more than $70 billion in its total value over the next month.
Its popularity makes it a highly liquid crypto asset, so you can easily buy or sell with low slippage.
On eToro, in particular, Dogecoin accounted for 9% of all cryptocurrency trading activity for Q2 2021. Supply continues to increase, with 10,000 Dogecoins being mined every minute. It means there are 14,400,400 DOGE tokens hitting the market daily, and there are already 139 billion tokens in circulation.
Note that there’s no maximum supply. As long as miners continue supporting the blockchain and adding to blocks, more Dogecoins will be created.
Safety Tips
While the cash in your eToro account is kept in FDIC-insured deposit accounts, stocks, ETFs, or options purchased are eligible for Securities Investor Protection Corporation (SIPC) insurance, your Dogecoin (and overall crypto) holdings are not insured.
However, the platform still has safety features to protect your account from hacks.
- Verify the phone number and email address linked to your eToro account
- Activate two-factor authentication (2FA)
- Create a strong password, i.e., long, a mixture of numbers, uppercase, and lowercase characters, and include symbols, e.g.! @ # $
- Activate biometric authentication (Face/Touch ID) to unlock the eToro mobile app. It’s optional and enables faster login.
Alternative Places to Buy Dogecoin
Top cryptocurrency exchanges you can buy Dogecoin from include:
FAQs
Yes, you can buy Dogecoin and withdraw it to your cryptocurrency wallet.
Dogecoin is classified as a high-risk asset as it has no intrinsic value and fluctuates by massive amounts within short periods. It’s also not insured like bank deposits, stocks, ETFs, bonds, or similar investments. It has a massive upside as a speculative asset, but you should also be prepared to lose what you invest.
You can sell your Dogecoin for USD on eToro by closing your position. However, withdrawing crypto assets from the platform is one-way. You cannot send the coins onto eToro to sell for USD.
No, eToro fees are moderately low, e.g., the transparent 1% fee for buying or selling crypto.
Disclaimer
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Crypto assets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
