How to buy Dogecoin (DOGE) – Forbes Advisor UK

The price of Dogecoin has skyrocketed in recent days following news that Tesla boss Elon Musk was preparing a takeover bid for Twitter, the microblogging platform.

Musk’s offer turned into corporate reality yesterday (Monday) when Twitter’s board accepted his takeover offer which values ​​the company at £34 billion ($44 billion).

Dogecoin, a cryptocurrency often promoted by Musk on his own Twitter feed, is popular with amateur investors. It is based on an internet “meme” – a witty or memorable online phrase or image – of a type of Japanese dog called Shibu Inu that later became the cryptocurrency’s mascot.

Despite Dogecoin’s recent price surge of around 14% to 13p – it’s now trading at a similar level to earlier this year – experts remain divided on what Musk’s takeover of Twitter could mean to long term for the cryptocurrency originally created as a joke version of Bitcoin.

Here’s what you need to know about buying and selling Dogecoin.

Note: Investing in cryptocurrencies is not for everyone. Cryptocurrencies are given to volatile price fluctuations. The UK’s financial watchdog, the Financial Conduct Authority (FCA), issues regular warnings about the crypto industry.

The FCA reminds future traders that crypto assets are unregulated and high risk. He says this means people are “very unlikely to have protection if things go wrong, so people should be prepared to lose all their money if they choose to invest in them”.

How to buy DOGE in 4 steps

1. Choose a crypto exchange or broker

A crypto exchange and a crypto broker can help you buy DOGE, but the two are slightly different.

An exchange is a platform where buyers and sellers can trade cryptocurrencies. A broker is an interface that interacts with exchanges on your behalf.

Some exchanges only deal in crypto, so if you’re new to investing and need to use fiat currency (eg UK pounds) to buy crypto, be sure choose an exchange that accepts it.

If you choose a broker instead, be aware of their rules regarding transferring your assets out of a brokerage platform, as some brokers do not allow you to transfer assets out of your account. If you wanted to store your DOGE in a crypto wallet for extra security, that wouldn’t be possible.

Read a list of FCA-registered cryptoasset companies here.

2. Choose a payment method

Most exchanges allow you to add funds to your account from your credit or debit card, bank account, crypto wallet, or other payment service. Transaction fees may apply and your payment method may affect the amount you pay.

Use a credit card and the card issuer will treat it as a cash advance, which will be subject to a higher interest rate than a normal purchase.

3. Buy your DOGE

In the exchange you have chosen, look for the DOGE currency option and enter the amount you want to invest.

4. Select secure storage

Unlike a bank account holding fiat currency, cryptocurrencies like DOGE are not protected by the Financial Services Compensation Scheme. This means that you would not be entitled to a refund if your DOGE was stolen, if you lost your access codes or if the exchange/broker in question went bankrupt.

A broker may not provide a choice as to where your DOGE is stored, but while an exchange may not provide a built-in crypto wallet, you are free to store it in wallets elsewhere, whether they are “hot”. or “cold”.

Hot wallets are stored online, which makes them more convenient but also more exposed to hackers.

Cold wallets are external storage devices such as hard drives or solid-state drives. They are arguably more secure, but if you were to lose your own access codes, you may never be able to access your assets.

Regardless of your choice, you may be charged a fee for exporting your DOGE to an external wallet.

Alternative ways to invest in DOGE

Buying shares in an organization that uses or owns cryptocurrencies and the blockchain that powers them is another way to invest in cryptocurrency. If the company is subject to regulatory review, you may think this is a safer way to invest.

Nvidia (NVDA), for example, is a manufacturer of graphics processing units used by cryptocurrency miners. Paypal (PYPL), on the other hand, allows users to buy and sell certain cryptocurrencies.

Note: Nvidia and Paypal are used for illustrative purposes and are not sharing recommendations. Investing in publicly traded companies does not guarantee that you will make any money or even get your investment back. You will need an online investment platform or trading app to get started.

About Lolita Plowman

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