Are you curious about diving into the world of cryptocurrency and getting your paws on some Dogecoin? Well, you’re in the right place. In this beginner-friendly guide, we’ll walk you through the steps to buy Dogecoin on eToro, one of the most user-friendly platforms out there. So, whether you’re a crypto-newbie or just looking for a hassle-free way to invest in this beloved “Shiba Inu” of cryptocurrencies, stay with us as we unravel the secrets of acquiring Dogecoin on eToro.
Dogecoin: A Brief Introduction
Dogecoin is a digital cryptocurrency created in 2013 as a fun and friendly alternative to Bitcoin. It features the Shiba Inu dog from the “Doge” meme as its logo, which makes it instantly recognizable. Unlike Bitcoin, which has a fixed supply, Dogecoin has no maximum limit, meaning new Dogecoins are constantly created.
One of its strengths is speed – transactions are processed quickly, making it suitable for small online purchases and tipping content creators. Plus, transaction fees are typically very low, making it cost-effective.
What is eToro Trading Platform?
eToro is a popular online trading platform where you can buy and sell a wide range of financial assets, including stocks, cryptocurrencies, commodities, and more. What makes eToro unique is its social trading aspect, allowing users to follow and copy the trading strategies of other investors. It’s user-friendly and regulated, making it accessible and secure for traders of all levels of experience.
How to buy Dogecoin on eToro: A Step-By-Step Guide
Sign Up on eToro
The first and foremost step is to create an account on eToro if you haven’t already. Visit the eToro website or download the eToro app on your smartphone.
How to sign up on eToro
- Visit the eToro website.
- Click on the “Join Now” button.
- Fill in your personal information, including your name, email address, and phone number.
- Choose a username and password for your account.
- Click the “Create Account” or “Sign Up” button to complete the registration process.
- Verify your email address by clicking on the verification link sent to your inbox.
Verify Your Identity
eToro takes security seriously, which is why you’ll need to verify your identity. This involves uploading a copy of your government-issued ID, such as a driver’s license or passport.
To verify your identity on eToro, follow these steps:
- Navigate to your account settings or profile section.
- Find and click on the “Verification” or “Verify Identity” option.
- Follow the on-screen instructions to provide your personal information and upload necessary documents for verification, such as a government-issued ID (e.g., driver’s license or passport).
Ensure that the documents you upload are clear and that they match the information you provided during registration.
The eToro verification team will review your submitted documents. You will receive a confirmation once your identity verification is successfully completed, typically within a few business days.
With your identity verified, you can access the full range of eToro’s services and features, including the ability to deposit funds and start trading cryptocurrencies.
Fund Your Account
Before you can buy Dogecoin, you need to fund your eToro account.
- Log In: Sign in to your eToro account.
- Access Wallet: Find the “Wallet” option in your account.
- Choose Deposit: Click on “Deposit” within the Wallet section.
- Select Amount: Specify the amount you want to deposit.
- Pick Payment Method: Choose your preferred funding method (e.g., credit/debit card, bank transfer).
- Confirm Deposit: Review the details and confirm the deposit.
Search for Dogecoin
Once your account is funded, it’s time to start investing. Navigate to the eToro trading platform, and in the search bar, type “Dogecoin” or its trading symbol “DOGE.” You’ll find the Dogecoin trading pairs available on eToro.
Place a Buy Order
Now that you’ve found Dogecoin, you can place an order. There are two main types of orders: market orders and limit orders. A market order buys Dogecoin at the current market price, while a limit order allows you to specify the price at which you want to buy Dogecoin. Select the order type that fits your investment strategy.
- Select “Trade”: Once you find DOGE, click on it. This will take you to the trading screen.
- Choose the Amount: Specify the amount of Dogecoin you want to purchase.
- Set Your Parameters: Set the trading parameters, such as selecting leverage (if desired) and setting stop loss or take profit levels.
- Click “Open Trade”: After reviewing your order details, click the “Open Trade” button.
- Confirmation: Confirm your trade. You’ll receive a confirmation of your purchase.
How to Monitor your Dogecoin investment
Monitoring your Dogecoin investment is essential to keep track of its performance and make informed decisions. Here are a few ways to keep track of your Dogecoin investment.
- Employ a reputable cryptocurrency tracking platform.
- Configure price alerts to remain informed of market movements.
- Utilize a comprehensive portfolio management tool.
- Consider the adoption of hardware wallets for enhanced security.
READ ALSO: How To Buy Bitcoin on eToro
Is it safe to store Dogecoin on eToro?
Storing Dogecoin on eToro has its pros and cons, and whether it’s safe depends on your specific needs and preferences. Here are some key points to consider:
Pros:
- User-Friendly: eToro is known for its user-friendly interface, making it easy for beginners to buy, sell, and manage Dogecoin and other assets.
- Regulated Platform: eToro is a regulated platform in many jurisdictions, which adds a layer of security and transparency.
- Social Trading: eToro’s social trading features allow you to follow and copy the trades of experienced investors.
- Liquidity: On eToro, you can easily convert Dogecoin to other cryptocurrencies or traditional currencies, which can be useful.
Cons:
- No Private Keys: When you buy Dogecoin on eToro, you don’t have access to the private keys of your coins. This means you don’t have full control over your assets, which can be a security concern for some users.
- Risk of Hacking: While eToro employs security measures, no online platform is entirely immune to hacking. Your assets are stored on eToro’s servers, making them a potential target for cyber attacks.
- Limited Access: eToro’s availability can vary by location. Some users may not have access to the platform due to regional restrictions.
- Fees: eToro charges various fees, including spreads, overnight fees, and withdrawal fees, which can affect your overall returns.
- Ownership Issues: When you buy Dogecoin on eToro, you have a contractual claim on the asset, but you don’t have legal ownership of the underlying coin.
Conclusion
In conclusion, purchasing Dogecoin on eToro is simplified by a user-friendly platform that serves both novice and experienced traders. While eToro provides convenience and social trading features, it’s important to be aware of associated fees and the fact that you won’t have direct control over your Dogecoin’s private keys.
FAQs
Yes, Dogecoin (DOGE) is available on eToro. You can buy, sell, and trade DOGE on eToro, and you can also store your DOGE in your eToro wallet.
The minimum amount of Dogecoin you can buy on eToro is $10 USD. This applies to all deposit methods and account types.
eToro imposes a 1% spread fee when buying and selling Dogecoin. This means that when you buy Dogecoin, the price you pay will be 1% higher than the market price, and when you sell Dogecoin, the price you receive will be 1% lower than the market price.