How To Buy Dogecoin On eToro [Step By Step]
Finance magnates have recently announced the introduction of two new cryptocurrencies on their trading platform. Those are Ethereum and Dogecoin.
Some of you might have already heard about this popular social investment network since it was founded in 2007. eToro is a safe, simple, and user-friendly website intended to provide novice investors with an adequate starting point for trading global markets.
Despite the fact that they are not fully decentralized like most of the cryptocurrencies, it is still possible to buy virtual currencies on their platform (that's what I'm going to tell you about today).
As Ethereum is currently available, Dogecoin is added too.
How Does It Work?
To get started, you have to open an account that will serve as your investment portfolio. You are required to deposit a minimum amount of $200 USD within the first week of opening it.
This only serves as a preventative measure against potential fraudulent activities. Now you can check out the available cryptocurrencies and buy one with the funds in your eToro account by using a simple trading interface.
Open an account on eToro and complete the initial deposit to activate your virtual portfolio for trading cryptocurrencies.
The basic plan is free of charge, but in order to make a profit, you will need to deposit money with one of their pre-selected brokers (there are more than 30 available at the moment).
The next step is to make a choice on the price of one contract (unit) and follow your investment. The whole process takes less than 10 minutes, and you don't have to transfer money and wait for days or weeks (like it happens with some other virtual trading websites), eToro does everything instantly.
If you want to trade other assets than cryptocurrencies, you can open a normal account and invest without any initial fee or commissions.
Make a choice on the price of one contract (unit) and follow your investment.
As I've mentioned earlier, eToro is safe and reliable as there are no hidden fees whatsoever. That's not all; the company adheres to strict rules and banking laws, so you can be sure they will reimburse your deposit if the broker suddenly goes bankrupt (at least that's how it worked for me).
How Can I Buy Dogecoin?
It is possible to buy Dogecoin with the eToro platform. Here are some simple steps that you should follow:
- Open an account on eToro and deposit $200 USD or more. For an additional $200, you can get up to 500 units (which is equal to 100%).
- Select the cryptocurrency of your choice (in this case it would be Dogecoin).
- Use the interface of the eToro website to buy units of cryptocurrency.
- Wait for the platform to generate buy/sell signals (you don't need any special expertise in order to make money with this company).
Now you can check out the available cryptocurrencies and buy one with your eToro funds by using a simple trading interface. Keep in mind that a deposit is required when opening an account, but no fee on the transactions.
You can use Dogecoin to pay for goods or services on the web, but you will have to find a seller who accepts this virtual currency. This means that it's much easier to buy products with Bitcoin than with Dogecoin.
Even though there are several wallets out there that you can use to store Dogecoin, there are none that support this particular cryptocurrency. This means that you will have to install the multi-currency wallet on your computer or smartphone and transfer all money there.
Now, that we know how to buy Dogecoin on eToro, let us see why Dogecoin is getting so much attention:
What is Dogecoin?
Dogecoin is a cryptocurrency that has appeared in 2013 as a parody of the popular Bitcoin. The name itself describes it well since Doge was initially used as an image of a dog on the internet with funny phrases attached to pictures (in other words, memes).
Within six months, this virtual currency became quite popular among online users and, in 2014, it was introduced on the trading platform Moolah.
This led to a massive increase in value and, by 2015, Dogecoin became number five when it comes to the market capitalization of all cryptocurrencies.
Even though at first glance this virtual currency looks very similar to Bitcoin or Litecoin (since it's based on a mining algorithm), there are some significant differences.
- Much more coins can be mined due to the fact that Dogecoin uses a Scrypt mining algorithm, while Bitcoin and Litecoin use SHA 256. That means that it is more efficient to mine this virtual currency.
- Transaction time is extremely short, even if your computer isn't very powerful. In other words, as soon as the transaction is confirmed it can be used. In comparison with Bitcoin, Dogecoin gives you superb speed and efficiency.
How Can I Earn Money with Dogecoin?
You can generate profit by using both long-term and short-term trading on the eToro platform. Here's what to do:
- Deposit a sum of money and select a Dogecoin contract (or if you already have the virtual currency, then simply buy it at eToro).
- Now that your portfolio is active, wait for Dogecoin to increase in price. If you notice that the value is growing, simply sell it before users will get panic and the value drops.
- If you don't have experience with trading, then just follow the money that has been invested by others and copy it on your account. The system will do all the job for you.
- After a while, so as to earn from short-term investments, buy Dogecoin as soon as possible. In simple words, you should buy Dogecoin when eToro releases it on the platform (as is the case with most of the cryptocurrencies).
What are the advantages of buying Dogecoin?
- As with Bitcoin, it is easy to see how many units there are of this virtual currency and where they are located. In other words, you can't generate more Dogecoin than the system allows.
- Number one cryptocurrency that was designed as a joke but turned into a reality shortly after its first appearance on Moolah.
- Widely accepted on various trading platforms, such as eToro.
- The massive amount of Dogecoin ensures that the virtual currency will not disappear anytime soon (even though it's quite similar to Litecoin and Bitcoin).
What are the disadvantages of buying Dogecoin?
Of course, there is a downside: volatility. Since this cryptocurrency appeared just a few years ago and was not widely accepted (it only reached the top, after Bitcoin and Litecoin), its price can change dramatically.
It can rise or fall several times during a single day - it's up to you to decide how much risk you want to take.
If You Are Planning To Invest…
Keep in mind that investing in Dogecoin requires you to take a certain risk. In addition, this virtual currency is not regulated at all and there's no one the guarantee that your investment will return a profit.
If You Are Just Looking To Use It Like Money…
It doesn't make sense to invest in Dogecoin if your only plan is to trade it. In other words, if you are looking for a virtual currency to use as a money method of payment, then it will be much more efficient to invest in cryptocurrencies such as Bitcoin. However, you can always sell Dogecoin on eToro and transfer the money into your bank account or use them otherwise.
What Should You Remember Before You Head Out To Buy Dogecoin?
If you already decided that this virtual currency is worth investing in, then there are several things to remember:
- As mentioned above, it's important to take a certain risk because this cryptocurrency can lose its value anytime. In order not to end up losing all your money, always invest only the sum that you can afford to lose.
- Keep in mind that the value of this virtual currency is extremely unstable and it's not regulated at all. In other words, don't invest money if you can't take a loss - the negative impact will be inevitable.
- Dogecoin is a cryptocurrency with no upper limits or restrictions on use (that is, there aren't any limitations on how and where you can spend it). Since this virtual currency was designed as a joke, its value grew quickly and continues to grow.
- The number of users who use Dogecoin is constantly increasing (so far, the number of users exceeds 100,000). That means that you will not have trouble using this cryptocurrency for transactions.
- The virtual currency is widely accepted on various trading platforms, including eToro. This means that you can trade Dogecoin whenever you want without having to worry about meeting someone who accepts it as a payment method.
What Is the Best Way To Store It?
Even though Dogecoin is not yet widely accepted as a method of payment or money, it is possible to store it in the wallet and use it whenever you want.
Since there's no limit on how many Dogecoin can be produced (just like with Bitcoin), you will always be able to sell them on eToro (since this is the only platform that trades Dogecoin).
Why eToro is best to buy the Dogecoin?
- eToro makes it easy for you to trade all major global currencies, commodities and indices.
- eToro is a social trading network, which means that you can copy the successful strategies used by other traders. You can even open a demo account and test your skills before launching a real money investing campaign.
- The company has been around since 2007 and is fully regulated by the FCA.
- The company uses a top-notch security system that protects all investors' money from being hacked or stolen.
- You can use either a credit card, a bank transfer or a PayPal to buy Dogecoin on eToro.
What Does eToro Say About This Virtual Currency?
eToro's statement regarding Dogecoin:
"We believe that Dogecoin is a decentralized, peer-to-peer currency that will continue to exist and grow in popularity over the long term. We also believe that virtual currencies, in general, will continue to be an important part of the market and that trading them for profit should remain a valuable and influential service."
Possible Price Range for this Cryptocurrency (in USD)
At the moment, the price of 1 Dogecoin is $0.0009 and it's expected to remain fairly stable in the next few months (despite its constant increase over time).
Is buying Dogecoin worth it?
Yes, definitely. This Cryptocurrency is popular and its price keeps on growing with time, so it's a valuable investment opportunity to take advantage of.
If you still have any doubts about Dogecoin or if you want to know more about this virtual currency before buying it, contact eToro directly via email at firstname.lastname@example.org or visit the website at www.etoro.com.
eToro is a professional and highly reputable trading platform that allows you to buy Dogecoin (even though this cryptocurrency has been designed as a joke). You can even purchase this virtual currency with a credit card, which makes the entire process easier.
However, keep in mind that no one can predict the future value of Dogecoins - and that's why you should never invest money in something you can't afford to lose.