Buy Dogecoin – here’s how

If you want to invest money in Dogecoin, you can simply buy the cryptocurrency in euros and store it in your wallet. Find out where to create such a wallet and which exchanges offer the purchase of Dogecoin in this practical tip.

Worth knowing about Dogecoin – currency started as a joke

In early February 2021, the cryptocurrency Dogecoin, which had been launched as an internet joke in 2013, started to soar (8.6 US cents on 7 February 2021). A few weeks earlier, the price had still been at the zero mark. This level does not sound like much, but the market value of all Dogecoins in circulation is a good ten billion US dollars. However, the price is expected to remain very volatile for the time being.

• The “joke” currency is getting a boost above all from prominent Twitter messages. Billionaire and Tesla boss Elon Musk, for example, has commented on Dogecoin several times. Later, other well-known personalities joined in, such as the rapper Snoop Dogg or the bassist of the rock band Kiss, Gene Simmons.

• Musk’s remarks didn’t just lead to share price rises, however. In early May, Elon Musk co-hosted the US show “Saturday Night Live” and criticised Dogecoin, causing the share price to plummet by several percentage points.

• Dogecoin’s rise was nevertheless rapid. At the beginning, the digital currency was hardly known to anyone outside the crypto scene. By market value, however, it is one of the ten largest digital currencies (as of May 2021)

• The name is based on the English term for dog, as the symbol of Dogecoin is an Asian dog. This symbol, in turn, was once a fun image often used on the internet, a meme.

Buy Dogecoin: How to create a wallet

Dogecoin (DOGE) was originally conceived as a kind of internet joke. It has since become a serious cryptocurrency that is being traded by more and more people. To trade with it, you need a wallet.

1. One of the best and easiest wallets for Dogecoin can be found on the currency’s official website.
2. Click on “Create Wallet” on the website.
3. Enter your email address and a password. Please note that the security of your wallet depends on the password. It should therefore never be too short or easy to guess. At the same time, you must be able to remember the password, otherwise you will no longer be able to access your Dogecoins.
4. Your personal wallet ID will then be created. Make sure you write this down. The ID is needed so that you can log in in the future.
5. After logging in, you will see the item “DOGE address” at the bottom, next to a QR code. This is where you need to send your Dogecoins to in order for them to appear in your wallet.

   

Buy cryptocurrency Dogecoin at bitpanda.com

A large, reputable provider for Dogecoin is bitpanda.com. You can also find Dogecoins on Coinbase.com, but you cannot trade the cryptocurrency, only watch it. Read more about the two providers Bitpanda and Coinbase in comparison here.

1. Go to the website of bitpanda in your browser. Register and deposit money into your wallet

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2. Then click on Trade in the top right corner and further on Buy.
3. Now select Doge or Dogecoin.
4. Next, use your wallet to buy the cryptocurrency. You will then receive a summary by email.

Finally, you can transfer the coins to your original wallet. To do this, enter the desired address, the wallet ID mentioned above and click on Send now.

Earn Dogecoins by mining

As with any cryptocurrency, new Dogecoins can be mined. This symbolises the process of cryptographically calculating new coins. Anyone can participate in this process, provided they have the appropriate hardware.

• First of all, you need a powerful computer. In order to keep up with global mining farms and to keep the high power consumption economical, you cannot do without a fast server processor, a modern graphics card and lots of RAM.

• The more people mine for a cryptocurrency, the smaller your chances of making a quick buck. This is because the more coins you have already mined, the more difficult it becomes, i.e. the more time-consuming the calculations. So get in quickly before it’s no longer worth it.

• If you do not have a large server farm, it is worth joining a mining pool. Here you work together with other users and share your hardware. The profit is then divided up.

• Make sure to choose a reputable mining pool so that you receive a fair share of the profits. For example, create an account with Multipool or Prohashing.

• You also need to create a wallet to manage your winnings. You can do this either with a service provider or self-managed.

• You can now find out how to start prospecting from your mining pool. In some cases, these mining networks develop proprietary software to make it easier to work together.

Note: Trading in cryptocurrencies is subject to strong fluctuations. Therefore, only invest a small portion of your assets in such a speculative investment. You can find out how to buy or trade the cryptocurrency IOTA in the next practical tip.