Cryptocurrency is undoubtedly at its peak and this year has proven the potential of blockchain digging its roots deep within the global financial system. If you are an avid social media user, it is almost certain that you have heard people mentioning Dogecoin in the last few weeks. So, here’s a guide on how you can get to trade in the digital coin.
What is Dogecoin?
Dogecoin is a first-generation cryptocurrency that can be used to transfer value globally in a secure manner. The digital coin is famously known through its representation of the Shiba Inu dog from popular internet memes, unlike other currencies such as Bitcoin and Ethereum that have individual logos. The decision to use this meme character was brought on by the developer’s desire to keep the project light-hearted.
Like Bitcoin and Litecoin, the main purpose of this coin is to allow peer-to-peer transactions to occur in a censorship-resistant manner.
Dogecoin has lately been hugely covered and spoken about on social media because of its rising value. However, this spiking value could mean that its interest from people will either grow more or go down rapidly leaving people with huge losses. After all, we have seen similar scenarios with Bitcoin numerous times before.
So, whatever you do, make sure you are responsible enough when buying it.
How To Buy Dogecoin
Like other cryptocurrencies, Dogecoin can currently be bought and sold on various authorised platforms that support it.
Step 1: Create an Account
The first thing you have to do on any of the aforementioned sites is have an account so you can get to have a wallet for the coins you wish to buy or sell.
As always, currency trading requires you to pay a small fee on every trade you make. Luckily, some site like Binance offers affordable rates. Once you buy Dogecoin you can choose to keep your coins online or send them to a hardware wallet available for your coins.
You will definitely be required to have an account that is as secure as possible in order to avoid any infringement by hackers who could end up stealing your coins. This means having a strong password that cannot be guessed and ensuring the device you use is secure enough as well.
Step 2: Payment Methods
Some site requires you to include your financial credentials while setting up your account. Others will give you the freedom to enter the details for every transaction.
Luckily, some sites easily allow you to select your country’s currency (in your case, Kenyan Shilling) and the payment option you want to use. In fact, a site like Coinbase already supports direct transactions to and from M-PESA. Other options include Credit Card, Bank Transfer and PayPal.
Step 3: Trade or Buy Your First Dogecoin
In certain exchange sites like Binance, you are not allowed to buy every cryptocurrency directly using fiat currency. Therefore the exchanges created stable coins like Tether USDT.
These stable coins are what you purchase first to later swap them over to the currency you want to buy. Before buying your preferred coin it’s good to research what coins are paired to the coin you intend to buy. For instance, some coins only pair with Bitcoin and Ethereum while others also pair with stable coins.
To be a trader, it will be also important to be logged into the sites that provide real-time values of the coins so you can know the best time to sell. Some of these sites include:
If not, then you can easily keep them in your wallet and keep them as secure as possible.