How to Buy Dogecoin on a Crypto Exchange

If the platform’s fee structure and payment options are acceptable, you will need to set up an account before you begin trading. Setting up an account is usually very simple and involves

• Downloading the app for the crypto exchange of your choice
• Providing details such as name, proof of address, a valid ID, social security number (in the US), phone number 
• Verification of data by the exchange

Once the account is set up, verified, and activated, you will need to add funds to it before you begin trading. This can be done using a bank account, debit card, or a wire transfer. Crypto exchanges may also allow credit cards for these transactions; still, banks can charge hefty fees on their use at exchanges, so users need to exercise caution before tapping into their credit limit to buy Dogecoin. 

With sufficient funds in the account, one can buy Dogecoin at prevailing market rates, or set up a Buy Order to execute the transaction when the Dogecoin price reaches a specific value. Crypto exchanges also charge a small fee when a transaction is completed, which can be a fixed amount and a percentage of the transaction amount. 

How long does it take to buy Dogecoin?

There might be some delay in receiving your Dogecoin into your wallet since the transaction must be confirmed on the blockchain. If you have purchased Bitcoin before, you would be happy to know that the transaction confirmation for Dogecoin usually takes just a minute as compared to Bitcoin, which can take at least ten minutes, if not more.  

This is because Dogecoin uses a different crypto protocol than Bitcoin. All transactions on the coin’s network are stored in a public ledger in blocks, hence the name blockchain. Like Bitcoin, Dogecoin also uses ‘proof-of-work’ technology to confirm a transaction on the blockchain. This involves solving complex mathematical problems to arrive at a solution called a hash, which allows a transaction entry to be made on the blockchain.

Although it was created as a joke, the creators of Dogecoin also tried to address the shortcomings of Bitcoin in their design and improved the transaction speed complaints that users had with the first cryptocurrency. 

How to store Dogecoin

Most crypto exchanges offer a digital wallet to save the Dogecoin you purchase. However, some unbundle the wallet from their services, meaning you either need to pay additional fees to use their digital wallet or another wallet service to save your Dogecoin holdings.

A secure wallet is imperative since cryptocurrency holdings are in the public domain, and everybody can see how much Dogecoin a wallet is holding at any given time. An unsecured wallet is an easier target for hackers and since Dogecoin is a decentralized currency, there is no mechanism to recover your lost holdings. 

One can use two types of wallets: an online wallet and an offline wallet. An online wallet, also known as a hot wallet, is always connected to the internet and can be used for receiving Dogecoin or making transaction payments such as buying merchandise on the Tesla website. However, it is possible to hack hot wallets.