It’s hard to ignore the current hype around Dogecoin. The cryptocurrency was originally introduced as a meme, but has recently skyrocketed in value by 13,500% this year. However, investing in cryptocurrency can be confusing and many onlookers are probably wondering exactly how to invest in Dogecoin.
Of course, Dogecoin isn’t the only cryptocurrency worth looking at. Bitcoin has been rising in value for years and Ethereum has also caught many people’s attention. There are also thousands of other cryptocurrencies from Litecoin to IOTA. If you want to get involved and start making gains, here’s a guide on how to invest in Dogecoin, Bitcoin, Ethereum, and other cryptocurrencies.
1. Get A Cryptocurrency Wallet
The first step to investing in cryptocurrency is to get a cryptocurrency wallet. This is where you’ll keep your currency safe – away from tampering and away from online exchanges that are prone to all kinds of vulnerabilities. You must get one of these, and you’ll also need to consider a few different options.
Hot wallets are wallets that are connected to the internet. These usually come in the form of a website or app where you can keep your money. These are somewhat like online bank accounts in the sense that they’re easy to use and free to open, but also more prone to vulnerabilities such as hacking.
Cold wallets are wallets that are disconnected from the internet. For instance, instead of keeping your cryptocurrency stored on a digital platform, you can transfer it to a piece of hardware or even a disconnected computer. These are generally much better for security purposes.
You can always transfer crypto between your hot and cold wallets, so don’t worry about making the perfect choice at first. You may want to start with a hot wallet such as Exodus or Electrum then later move your crypto to a hardware wallet such as the Trezor One or Ledger Nano S. Whichever way, you’ll need a wallet before you start investing in cryptocurrency.
2. Sign Up To A Cryptocurrency Exchange
The next step is to sign up to a cryptocurrency exchange. These are websites where you can buy, sell, and transfer your cryptocurrency. It’s important to find a reliable, trustworthy cryptocurrency exchange that’ll give you good deals.
Coinbase and Binance are the two most popular cryptocurrency exchanges. Binance offers slightly lower fees when it comes to transferring your cryptocurrency, although Coinbase offers an extremely user-friendly platform that makes it great for beginners.
After you sign up, you’ll generally need to provide some personal information as well as some proof of identification. This is usually a fairly quick and simple process, but it’s best to do this as early as possible as some users report that it can take days for the verification process to be completed.
Once you’ve signed up and verified your account, you’ll be able to start on your cryptocurrency investing journey. The next step is to figure out exactly what cryptocurrency you want, when to buy it, and how to buy it.
3. Start Investing In Cryptocurrency
You can start investing in cryptocurrency by adding funds from a card, bank account, or online payment account to your cryptocurrency exchange account. You can then convert your money into all kinds of different cryptocurrencies.
While it can be tempting to jump on any cryptocurrency that looks like it’s rising, it’s important to make smart investments. It’s best to check out forums, blogs, and other in-depth sources of information to decide what you want to buy, how much you want to buy, and how long you want to keep it.
With the cheap price of Dogecoin and its current potential, you might want to start by investing a small amount of money in Dogecoin. Simply choose Dogecoin on your cryptocurrency exchange and it’ll take you through a simple process where you can instantly buy it. You can then hold onto it until you’re ready to sell.
For short-term investments, you can wait until the value of your cryptocurrency rises and sell it back to the exchange at a higher rate. Alternatively, you can send your cryptocurrency to your crypto wallet and store it for a longer time until you’re ready to sell.
4. Move Cryptocurrency To Your Wallet
If you want to hold onto your cryptocurrency for a long time and wait for it to appreciate in value, you’ll need to send it from your cryptocurrency exchange account to your cryptocurrency wallet. Exchanges are prone to vulnerabilities and storing cryptocurrency in your wallet ensures that you have complete control and ownership over it.
This process can vary slightly depending on the exchange and wallet that you use, but it’s usually perfectly straightforward. Generally, you’ll need to use your wallet to create a withdrawal address then simply enter this address on the exchange. Within minutes, your crypto will be transferred to your wallet.
You can keep your cryptocurrency in your wallet for as long as you like, then deposit it back into your cryptocurrency exchange account (or even sign up for another exchange) once you’re ready to sell. This is much like transferring your money between a bank account and stock exchange or online betting account.
Keep in mind that, while some cryptocurrencies surge overnight, others take years to increase in value. Remember to do regular research on your cryptocurrencies to decide when is the right time to buy or sell. However, when you’re not actively using your cryptocurrency, it’s essential to keep it securely in your wallet.
Although taking your first steps into cryptocurrency investing can be confusing, these simple steps will help you start investing in Dogecoin, Bitcoin, Ethereum, and all kinds of other fascinating cryptocurrencies in no time.
Remember that investing is always a risk and there’s always a chance that your cryptocurrency will depreciate in value. With that said, many cryptocurrencies are now on the rise, and it’s an excellent time to start investing. Make sure to do your own research when it comes to exchanges, wallets, and which cryptocurrencies to invest in. This will ensure that you make smart investments and keep them as secure as possible.