While Dogecoin has experienced massive price fluctuations and a somewhat-lackluster performance over the past couple of years, this crypto coin continues to attract the attention of investors and day traders. After all, the combustive surge of 9,000% over the first half of 2021 is still fresh in the memory of many. In this guide, we will provide you with step-by-step instructions on how to buy Dogecoin in the UK, together with advice on whether to invest, some recurring mistakes you can avoid, and the most efficient method of investing in the token.
Best Crypto Exchange for Intermediate Traders and Investors
-
Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.
-
0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
What is Dogecoin?
Dogecoin (DOGE) entered the cryptocurrency market in 2013 as an attempt to make fun of Bitcoin. The coin bore the image of the infamous Shiba Inu meme dog and inspired a community of fans to perform various publicity stunts, such as helping the Jamaican Bobsleigh team travel to the 2014 Olympics.
Each subsequent community-driven action raised the value of Dogecoin and lead many investors to buy it, even in the UK. The culmination of Dogecoin’s price occurred in May 2021, mostly due to Elon Musk’s public embrace of the token as his favorite cryptocurrency – a trend of support that hasn’t stopped since.
Dogecoin is still the same meme coin, but it has propelled itself beyond most competitors and is currently within the top ten cryptocurrencies by market cap. Jokes aside, investing in Dogecoin has long been a serious business. After all, those fortunate and crypto-savvy enough to invest in the token up to 2021 have seen their investment increase about 9,000% or ninety times.
Although a second surge of such proportions remains unlikely, Dogecoin still sees periods of steep increases in price. Who can be sure if, or when, the next ‘hit the motherlode’ moment will happen?
How to start investing in Dogecoin in the UK?
If you have little to no experience in crypto trading, the process may seem too difficult. Despite the first impressions, you can start investing and buy Dogecoin in the UK in a few simple steps. Although hiring a professional is always an option, you can cut the middleman and make the purchase yourself through an online exchange platform.
The first piece of instruction before you even begin is that you should always take cryptocurrency trading seriously. You are liable to lose the money you invested at all times. If you closely adhere to the guidelines and instructions in the following paragraphs, however, the risk management effort should help you become net-positive.
Buying Dogecoin is a process that boils down to several steps, explained in detail below.
How to buy Dogecoin in the UK: step-by-step
The following steps will provide all the necessary information in simple and clear instructions on how to buy Dogecoin in the UK:
Step 1: Choose a broker
To begin with, before you invest in Dogecoin in the UK you will need to choose an online exchange platform that provides the token. You’ll find many platforms online with Dogecoin available on them due to the token’s popularity, but some platforms are better than others, while some unregulated brokerages shouldn’t be considered in the first place.
Trading Dogecoin can be done by different methods; for example, day traders aim to capitalize on short-term price fluctuations, while ‘hodlers’ keep the cryptocurrency for extended periods in hopes of a surge that Dogecoin has been well-known for.
Besides, there are general factors for choosing an exchange platform that you should consider beforehand, no matter the approach or method you prefer.
Brokerage factors
- Fees: It is in your financial interest to seek as lower transaction fees as possible. That said, lower fees should not come at the expense of other, equally important factors. Unlike ETF and stock, crypto trading usually does incur certain fees that can go as high as 5% per transaction, depending on the means of payment and transaction;
- Security: Always maintain your security and privacy. In trading crypto, you will do this by ensuring that the brokerage of your choice is registered with the relevant authorities, such as the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Furthermore, look for solid security measures (including two-factor authentication) and SSL technology;
- The availability of different tokens: The fact that you’re looking for Dogecoin specifically doesn’t mean that your exchange of choice shouldn’t have a diverse offering of crypto coins. The more, the better, as it is an indicator of wider support and compatibility;
- UI and UX: The two indicators that show the amount of care an exchange shows towards its clients are user interface and user experience;
- High liquidity: The ability to exchange tokens into cash (and vice versa) is welcome in a crypto exchange. Check the trading volume of an exchange, as a high trading volume indicates higher liquidity;
- Deposit method: Make sure that the cryptocurrency exchange you choose allows a deposit method that is available to you;
- Advanced trading and financial features: Investing in Dogecoin doesn’t end with buying the tokens. Look for an exchange with features that make monitoring and handling your assets easier, such as analytical tools, charts, and features like leverage and margin trading.
Where to buy Dogecoin in the UK?
Looking for the most optimal exchange platform can be difficult and time-consuming. If you want the result without the manual labor, consider buying Dogecoin on eToro, a platform that provides:
- 1% fees for cryptocurrency;
- No account minimums;
- Trading in 30+ cryptocurrencies;
- Exhaustive guides and tutorials;
- Staking services;
- Copy-trading: Ability to match the moves of top-performing traders.
Best Crypto Exchange for Intermediate Traders and Investors
-
Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.
-
0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Step 2: Create and fund your brokerage account
Once you’ve made your choice on a cryptocurrency exchange, you should proceed to create an account. You will have to verify your account at the end of the process, which typically includes proof of identity like a legitimate ID or a driving license.
Now, for the funding part: depending on the exchange, you will have multiple payment methods available, like linking a bank account directly, using a debit, or prepaid card, or relying on a third-party financial service. Finally, you will use the funds to buy Dogecoin in the UK. Note, however, that Credit Cards and PayPal are not available for deposits for users under the FCA regulation.
Note
Step 3: Do some research on Dogecoin
As mentioned before, cryptocurrency is by no means a no-brain investment that you don’t need to think about, just do. Crypto can be notoriously unstable in price, and that’s even more true for Dogecoin. You must learn as much as you can about it beforehand.
Before you buy Dogecoin in the UK, make sure to check the current price trends as well as feel the general pulse of the market. Go through the recent news and listen to other users’ experiences.
Step 4: Determine the amount to buy Dogecoin in the UK
Once the preparations are ready, check your budget, go through the estimates of Dogecoin price, and see how much Dogecoin you’re willing to buy.
Remember
Step 5: Place your order and buy Dogecoin in the UK
You are now finished with the preparations and ready to buy Dogecoin. Log in to the crypto exchange platform (eToro in our case), navigate towards the ‘Cryptocurrencies’ menu, input DOGE for Dogecoin, and specify the number of tokens you’re willing to purchase.
You have two types of orders at your disposal:
- Market order: A direct instruction to purchase Dogecoin at the best currently available market price. The order goes through instantly if Dogecoin is available; alternatively, if the market is closed, then your trade goes the first thing after it reopens;
- Limit order: A feature that makes trading easier and reduces traders’ manual labor, a limit order purchases the asset when the price reaches the number that you have designated, meaning at the exact price or lower.
Step 6: Monitor your investment
Serious and professional crypto trading requires significant time and effort from investors. As the conditions of the cryptocurrency market shift on a daily, sometimes even hourly basis, you will have to frequently re-check, readjust, and rethink your approach and strategy.
Make sure to follow the newest risk assessments and regulatory updates and redistribute your digital assets in a balanced and diversified portfolio. Dogecoin is a popular and historically successful token, but don’t tempt fate with all your token eggs in one crypto basket.
Dogecoin price UK
Should I invest in Dogecoin?
The answers to questions like these are neither simple nor easy. Investing in any cryptocurrency, let alone Dogecoin, is a risky activity, but with huge potential rewards. If you understand the volatility and you’re willing to take your chances, you may find yourself with hefty returns.
Learning as much as you can about Dogecoin via various information sources makes for fundamental analysis, but you can also include the technical analysis, which interprets various factors like chart patterns and trends in analyses to give you a simple buy-neutral-sell indicator.
Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.
Common mistakes to avoid when buying Dogecoin in the UK
An occasional miscalculation or a wrong assessment is a frequent and expected occurrence when investing. As long as you learn from your mistakes and not repeat them, that is.
However, if you don’t make those mistakes in the first place is even better. Many have done them so you can learn from their loss instead of yours. We have a complete guide on the most common mistakes in investing. Here are some integral points from there:
- Lack of research: Entering the stock market blindly and without previously researching Dogecoin is a sure way to lose money fast;
- Lack of strategy: Trading without a goal in mind is another sure way to lose money fast;
- Short-term thinking: Impulsively reacting to a short-term event in the crypto market can lead to decisions that you will most likely regret when the head cools down – always think in the long term;
- Staking everything on one asset: Nothing prevents you from investing everything into Dogecoin. That said, that is almost certainly not a great move, as if you lose, you’ll lose everything. Always diversify;
- Inexperienced use of leverage: Leverage is a great tool for multiplying your stake. If you win, you win more, but vice versa is also true. Don’t use leverage if you aren’t fully prepared for the consequences;
- Falling prey to scams: The crypto market is a new addition to our society’s finances, thus vulnerable to fraudsters. Keep a close watch against schemes like rug pulls and pump and dumps: if it seems too good to be true, it probably is.
Pros and cons of buying Dogecoin in the UK
Investing in Dogecoin has its pros and cons. Here’s an overview of some vital aspects to ponder on:
Pros
- High potential returns: The value of Dogecoin has undergone significant corrections in recent years, with positive signs of a price increase, which is excellent for investors thinking long-term. Add Elon Musk’s (Tesla TSLA) and SpaceX’s) support for the token into the equation and you get prospects of potentially high returns if you invest;
- Enthusiastic community: We’ve mentioned Musk’s support for Dogecoin, but there are many fans and followers of the token, including other wealthy and influential individuals. Most of Dogecoin’s worth is a direct consequence of stunts made by the community. Every inclusion of Dogecoin in publicity stunts or even statements by the influential increases the value of the token and attracts more investors;
- Decentralization: Dogecoin has no central authority that can govern or adjust its prices against the pull of the forces of the market besides the developers and the investors;
- Low price: You’ve seen Dogecoin price today: the price of an individual token is very low. This doesn’t mean that the token is worthless, as Dogecoin’s market capitalization is among the highest on the market. The low price of individual tokens means you won’t have to buy fractions and juggle around with too many different proportional systems;
- Scalability: Dogecoin is widely used with no confirmation of significant slowdowns or network failures. As scalability is one the toughest obstacles to the widespread adoption of crypto, Dogecoin’s odds in this manner are very positive, which increased its potential.
Cons
- High volatility: Dogecoin is as valuable as the public thinks, which means that there is no tangible value to it behind the opinion of the market, like with all other cryptocurrencies. Investing has inherent risks, but investing in crypto coins, Dogecoin included, carries even more risk due to the heightened volatility of the asset;
- Slow development: The nature of Dogecoin has remained light-hearted since its meme origins. The team behind the token does not show significant incentive to quickly develop and adapt to new technologies, like smart contracts for example. This might cause Dogecoin to lag behind its more ‘serious’ peers and drop in price.
- Unlimited supply: Five billion new DOGE tokens enter the market every year. In other words, the supply of Dogecoins isn’t finite. Due to an increasing supply, Dogecoin remains at risk of price drops due to supply overwhelming demand. In this sense, tokens with a permanently limited supply like Bitcoin have an advantage over it.
Conclusion
In a little more than a decade, cryptocurrencies have transformed from a laughing stock of the financial sector to a force that must be taken very seriously. While there are fewer and fewer vocal critics of digital currencies, the market is still new and lags behind fiat currencies in widespread adoption.
Let’s not forget that the novelty also causes massive fluctuations in price that can significantly impact all investments in the industry. In comparison with the stock market which has a history that spans centuries or gold which has long been the standard of the world’s finances, crypto has yet to attain the stability of its predecessors.
And here we have Dogecoin, the meme that tried to make fun of the concept, but which has grown in significant proportions. Many have earned a considerable fortune trading it, but the risk is as high as ever and nothing is certain.
If you’re still considering investing in Dogecoin in the UK, make sure to follow all the guidelines and perform the necessary research. Prepare as much as possible, remain disciplined, and plan ahead. Maybe you will be the next one who’ll make the most of it.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to invest in Dogecoin UK
Can you invest in Dogecoin in the UK?
Yes, you can buy Dogecoin in the UK through a regulated and legitimate cryptocurrency exchange service.
How to buy Dogecoin in the UK?
You can buy Dogecoin in the UK with the help of eToro, the platform that has significant advantages that will help you in trade.
Where to buy Dogecoin in the UK?
Many exchange platforms offer Dogecoin, but we recommend eToro as one of the best options for buying Dogecoin in the UK.
Is Dogecoin a good investment?
Nothing is certain about any cryptocurrency, let alone Dogecoin. If you stick to the guidelines set in here, though, you will increase your prospects significantly.
Is investing in Dogecoin safe?
If you stick to safe exchanges and respect the security regulations laid down in this guide, investing in Dogecoin is safe.
Best Crypto Exchange for Intermediate Traders and Investors
-
Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.
-
0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
