How easy is it to buy and sell DOGE Coins?
Although viewed as a joke by many cryptocurrency enthusiasts, Dogecoin (DOGE) is a cryptocurrency created using code from Bitcoin (BTC), Litecoin (LTC), and the fork of Bitcoin Lucky Coin (LKY). DOGE was designed to poke fun at the Bitcoin hype, but finally gained significant traction after an image of a Shiba Inu plastered on a crypto currency.
Since the inception of Dogecoin, many investors have wondered how to sell Dogecoin for cash and wanted to know the answer to the question, “How easy is it to buy and sell DOGE?” Fortunately, we have the answer to those questions and more. Welcome to the beginner’s guide on how to sell DOGE for cash and cryptocurrencies.
What is Dogecoin?
Dogecoin is a meme coin created by two software engineers Billy Markus and Jackson Palmer in 2013. Based on the Shiba Inu “doge” meme, Palmer tweeted about creating a Doge-themed cryptocurrency.
Markus saw Palmer’s tweet and started developing Dogecoin on his own. Dogecoin is a fork of Lucky Coin, which is a fork of Bitcoin, so it is not wrong to say that Dogecoin is based on the code of Bitcoin.
The initial Bitcoin code base made it easy for Markus to tweak critical elements and launch Dogecoin. In fact, it only took Markus three hours to develop and launch Dogecoin. Palmer joined the project soon after.
Dogecoin quickly grew in popularity due to its meme-like quality and low price. Reddit even integrated a DOGE tipping feature to reward users, and Tesla founder Elon Musk tweeted positively about Dogecoin many times. Many investors also use DOGE to pay for goods and services online.
Because DOGE is based on Bitcoin, Dogecoin is a proof-of-work (PoW) cryptocurrency that requires miners to validate transactions. In the Dogecoin network, miners are called “hunters”. in addition to making fun of the possibility of mining cryptocurrencies.
How to sell Dogecoin for cash and cryptocurrencies
To sell Dogecoin, Dogecoin must first be acquired. Investing in Dogecoin requires the user to register with a cryptocurrency exchange that supports the Shiba-faced asset. Binance or Coinbase are good examples of exchanges that support DOGE.
Once registered for an exchange, the user must enter a payment method or send the existing cryptocurrency to the exchange’s wallet. From there, investing in Dogecoin is as easy as finding the asset and purchasing it with fiat currency or converting existing cryptocurrencies to DOGE. However, depending on the exchange, there are a few ways to buy DOGE.
The different types of orders give traders many options when buying or selling cryptocurrencies, whether they want to target a specific buy or sell price or set the time of the transaction. Limit and market orders are among the market orders that traders use to buy or sell digital currencies.
Limit orders allow investors to buy DOGE at a specific price. For example, suppose one wants to buy DOGE at $0.20, but it is currently priced at $0.23. The investor would create a buy limit order, entering the amount of DOGE they would like to buy at $0.20. That request will not be fulfilled until DOGE drops to $0.20. If the price of a cryptocurrency never reaches the order in a limit order, it will never be fulfilled.
Market Orders allow investors to buy DOGE at its current market price. A market order tends to be filled instantly, if not seconds after it is created. Market orders are less risky than limit orders as the near instantaneous nature of limit orders is not subject to volatility.
Selling DOGE for Cash and Cryptocurrency
No matter how DOGE is acquired, DOGE holders can sell the cryptocurrency whenever they want, and one can do so on any cryptocurrency exchange that supports Dogecoin.
If a user has never moved their Dogecoin from the exchange wallet, setting up a sell order is easy. If the DOGE was transferred to another wallet, it must be sent to a wallet on the chosen exchange.
When Dogecoin is in an exchange wallet, the investor can sell instantly through a market order or at a future price using a limit order. In addition to the market order and limit order sell types, there is also a stop loss order method.
A stop-loss order prevents a trader from losing their funds in the event of an asset price drop. When selling DOGE, a stop loss can be set for 15% of your current DOGE portfolio. If DOGE crashed overnight and dropped 25%, the stop loss order would have been automatically sold when the portfolio dropped 15%.
Either way, the trader is losing money. But, a stop-loss prevents the trader from losing more than they could have lost by selling assets before the price drops too low.
The Best Places to Sell DOGE
While all kinds of crypto exchanges support the sale of DOGE, only a few are the best places to sell DOGE: Kraken, Robinhood, and the Binance app.
How to Sell DOGE on Robinhood
While investors primarily see Robinhood as a stock trading platform, the app has expanded into cryptocurrency trading. Selling DOGE on Robinhood is also easy, it only takes a few steps.
How to sell Dogecoin on
Kraken Kraken users can convert DOGE to Bitcoin, US Dollar and Euro. All that is required is to have DOGE in the Kraken DOGE wallet by signing up for a Kraken account. To sign up for a Kraken account, you need an email address, username, and a strong password. Next, the Kraken account needs to be verified. Your name, country of residence, date of birth, and phone number are all required for verification purposes.
From there, users can sell DOGE for Bitcoin after creating a deposit address on their Kraken account. Otherwise, if a DOGE holder wants to sell DOGE for fiat, they will have to follow Kraken’s Know Your Customer (KYC) policies before doing so.
How to Sell Dogecoin on the Binance App
Binance App users can exchange their DOGE for their local fiat, Tether (USDT), or other trading pairs. After having DOGE in their Binance wallet, an investor can go to the “Trade” tab within the Binance dashboard and choose to sell DOGE via the order type of their choice.
The future of Dogecoin: Is DOGE a good investment?
DOGE is faster and cheaper to transact compared to its competitors like Bitcoin, which automatically makes Dogecoin a better investment asset. However, there are several key factors to consider before deciding if DOGE is a good investment.
For some traders, DOGE is an inflationary asset. Inflationary means that there is an unlimited supply of DOGE which removes any sense of Dogecoin scarcity. DOGE’s lack of scarcity could cause Dogecoin to become less and less valuable as more tokens are produced by the network.
The Dogecoin network releases 10,000 DOGE into circulation with each validated block. In general, 10,000 DOGE launched in each block results in about 5 billion DOGE issued per year.
It is important to remember that Palmer and Markus designed DOGE as a joke, hence the inflationary aspect of the token. The intention of Palmer and Markus could lead to the assumption that DOGE is not a good future investment. That said, considering that blockchain networks are open source, the community is the real deciding factor.
In fact, the DOGE community is working to bring new scalability and security updates over the next year. Whether or not these upgrades contribute to a long-term strong token is anyone’s guess.
At the end of the day, whether or not DOGE is a good investment depends entirely on investor sentiment. Some may use DOGE for simple transactions or to pay for goods and services. Others might be looking for a long-term DOGE investment so they can sell DOGE later and should do some research before making such a decision.