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How to Buy Dogecoin: All About Doge
No matter how long you have been in cryptocurrency it is likely that you have heard of Dogecoin (DOGE), Bitcoin’s fun cousin who forked from Litecoin and worked as a way to tip users on reddit with a crypto asset that had almost zero value but a cute logo.
What started out as a joke has recently become quite serious in terms of investment, crypto newbies and investment moguls alike seem to like something about Dogecoin. Some people have made a serious amount of money from trading Dogecoin, but with an infinite supply, extremely big whales, and very little else, Dogecoin is an extremely risky crypto asset.
If you are thinking of picking some up for fun then that is okay, but hopefully this Dogecoin review will give you pause before investing into it too seriously. It will also show you the easiest way to buy Dogecoin.
Dogecoin Pros & Cons
Pros
Same network security as Bitcoin
Easy to mine
Supportive community
You can buy a Tesla with Dogecoin
Cons
Unlimited supply
No development team or roadmap
High risk
Dogecoin Ratings
Supply
Max Supply: No max supply
Network Speed
Rating: Medium-Low
Reason: Blocks process every minute meaning transactions can be processed every minute, which is 10x faster than Bitcoin but extremely slow compared to newer blockchain project network speeds.
Disbursement
Rating: Low
Reason: Dogecoin is one of the most heavily centralized cryptocurrencies in terms of distribution. There is one address that holds over a quarter of the total circulating supply (almost $9 billion at current price), and overall, 11 portfolios hold almost half of total supply of Dogecoin. This means price manipulation is easy, and that a whale could crash prices with a dump very easily.
Developer Engagement
Rating: Low
Reason: There is zero development on Dogecoin, the last minor release of Dogecoin was over 2 years ago, there has been some recent activity to correct some issues but overall, there is zero actual development of Dogecoin as a blockchain technology.
Liquidity
Rating: High
Reason: Being one of the oldest cryptocurrencies makes Dogecoin available on almost all major exchanges, and the recent price explosion has pushed it into the top 10 by market cap, with daily volumes in the billions.
What Are the Best Crypto Exchanges for Buying Dogecoin?
Picking a crypto exchange for buying Dogecoin can be a somewhat subjective choice but there are a few things you should consider when picking an exchange for Doge.
First off, the exchange must offer Dogecoin (although most do these days) but perhaps the most important thing to consider is the state of security on the cryptocurrency exchanges you are considering. Fortunately most major crypto exchanges (especially the ones regulated in the USA) have shown to be reliable over the years. Here are some of our recommendations for buying Dogecoin:
- Great for crypto beginners
- Solid crypto/general trading platform
- Reliable company with solid trust in the community
- Fully supports credit cards for deposits and withdrawals
- Exceptionally secure exchange with proof of reserves
- Supports many different funding options
- Accepts users from across the globe including USA and Canada
- Very high trading volume
- The ultimate anything-to-anything exchange with support for foreign currencies, crypto, precious metals and more
- Easy sign-up process with streamlined UI
- Remarkably secure with proof of assets feature
- Available to people in over 150 different countries
History of Dogecoin
Dogecoin was started in 2013 by Jackson Palmer, an Adobe software engineer, and Billy Markus, an IBM software engineer. It was meant to be a joke, and only took about 3 hours to change the Bitcoin code to create Dogecoin according to Markus.
The Dogecoin network launched in December 2013 and the asset reached an all time high of a little over a cent during the 2017 crypto bubble. Markus and Palmer stepped away from Dogecoin in 2015. It is mostly run by community members now.
Part of the appeal of Dogecoin was that it offered one of the lowest per-unit prices, especially compared to Bitcoin. Crypto enthusiasts could own thousands, if not millions of Dogecoins when the price was sub-$.01.
The ultra-low price would change, however, with the rise of the massive crypto bull run from 2020-22 and Dogecoin become one of the most speculative assets in crypto history.
It certainly helped that around that time frame Elon Musk, of Tesla and Twitter (X) fame, took an interest in the coin. A combination of Musk Tweeting about Dogecoin and meme stock Gamestop soaring value helped Dogecoin higher and higher. Nearly every cryptocurrency exchange had to add Dogecoin to keep up with the intense demand.
Finally in May of 2021, in the midst of one of the biggest crypto bull runs in history, Dogecoin’s price reached an astounding $.73 per unit, meaning a market cap of $88 billion.
The price of DOGE has since cooled considerably and it currently trades in the $.05-$.10 range but it remains a top ten coin by market cap.
The famous Dogecoin run-up in 2021. Courtesy of CoinMarketCap.
Advantages of Dogecoin
Dogecoin maintains all the security of a blockchain because it is a copy of Bitcoin’s code with just a few changes to things like mining output, block time and supply.
Doge also enjoys much more mainstream attention than the average crypto. In terms of name recognition Dogecoin is probably right up there with Bitcoin and Ethereum as it appeals to a demographic that might not care as much about the technical side of cryptocurrency.
Other than that, the only advantage that Dogecoin has is that it has a strong crypto community which has helped propel its price despite it having no clear use case apart from a currency. One such proponent of Dogecoin is Elon Musk who has repeatedly pumped the coin on Twitter. It remains to be seen how committed Musk is to Dogecoin or whether he’s just having a laugh.
Interestingly Dogecoin is the only cryptocurrency that is currently accepted as payment for Tesla vehicles.
Disadvantages of Dogecoin
The main disadvantages of the Dogecoin cryptocurrency token are tied to its supply and its utility. There is an infinite supply of Dogecoin, it is mined at a rate of ten thousand new DOGE every minute, meaning over five billion DOGE will be produced each year.
This in theory should make it less valuable over time. The other issue surrounds utility in that Dogecoin has no real use other than a potential store of value with an endless supply, which again, in theory, should make it not worth too much as time goes on.
Dogecoin is especially volatile even compared to other cryptocurrencies.
Dogecoin Frequently Asked Questions
Dogecoin may one day reach $1, but this review is not meant as investment advice, rationally there is no reason Dogecoin should ever reach a $1. That does not mean whales, reddit users and others will not cause it to reach $1. That being said, CryptoVantage does not provide financial advice.
That’s a personal choice but most crypto experts recommend either buying or downloading a crypto wallet to secure large amounts of crypto.
Holding your crypto keys is the one way to guarantee that you don’t experience a Mt. Gox or FTX situation. Crypto wallet manufacturers Trezor and Ledger make some of the best physical devices and are considered one of the best ways to protect cryptocurrency holdings.
Dogecoin is an extremely risky investment. While all investments, especially cryptocurrencies, involve risk, Dogecoin has a variety of factors that make it riskier than a lot of other digital crypto assets, that it has a similar market cap to. This is because of the large whales that hold Dogecoin, its lack of actual technological development, and its infinite supply.
There are lots of other crypto assets out there but Dogecoin has always inspired a certain type of crypto enthusiast.
Yes. There are plenty of crypto brokerage apps that will let you purchase Dogecoin on your phone with very little difficulty. You just have to create a crypto account and you should be good to go.
There is an infinite number of Dogecoins left. The supply is not finite like it is for Bitcoin. Ten thousand Dogecoins enter the market every minute.
You can buy Dogecoin instantly at a variety of cryptocurrency brokers and exchanges including Binance Exchange, Crypto.com Exchange, Huobi Exchange, KuCoin Exchange, Kraken Exchange, Bittrex Global and Bitfinex. Crypto transactions tend to be very fast.
You’ll have to deposit money first, which can take up to a few days but the actual experience of buying Dogecoin, once your account is funded, is remarkably fast.
Yes, you can still mine Dogecoin, and because Dogecoin has an infinite supply you can mine Dogecoin until the world ends. Mining Dogecoin uses Scrypt rather than Proof of Work like Bitcoin does.
It takes 1 minute to mine 1 block of Dogecoin, with a block reward of 10k DOGE per block, meaning every minute there is another 10k DOGE available, and about 5.2 billion new Dogecoins are created each year. In comparison, only 900 Bitcoin are mined in a day, versus 14.4 million Dogecoin being mined in a day.
No, Dogecoin cannot be like Bitcoin. The main reason for this is the infinite supply of Dogecoin, and the difference in the current supply of each. While there will only ever be 21 million BTC, there will one day be trillions of Dogecoin, and then more after that, meaning over time it should get less and less valuable because it is being created endlessly, meaning demand can never outweigh supply. Scarcity is one of the biggest reasons Bitcoin is so valuable.
No. Selling Dogecoin is the same as any other crypto. You simply log onto your crypto exchange or brokerage and hit the sell button. You’ll have to confirm the transaction several times but you should have fiat currency like USD in your account almost instantly.
Because Dogecoin is based on Bitcoin (rather than Ethereum) it’s actually rather difficult to buy Doge on decentralized exchanges. Quite often you’ll have to rely on a wrapped version of the cryptocurrency token, which isn’t always ideal.
Beginners should focus on centralized exchanges for buying Dogecoin.
