Cryptocurrency is still fairly new, however it can be an exciting (and risky) investment opportunity. Dogecoin is set to explode and had already seen massive gains, so today I want to share how to buy Dogecoin, and whether it is a worthwhile purchase.
The most important thing I want to share with you, before we get into the nitty gritty of this post, is that all cryptocurrencies are still fairly new and buying some should form part of a diverse investment portfolio. There are certainly plenty of lower risk places to invest, such as a stocks and shares ISA.
Never invest more than you can afford to lose, and like all investments, the value could go up as well as down, and your capital is always at risk.
What is Dogecoin?
Have you seen the Doge meme?
Dogecoin is a cryptocurrency that was invented by software engineers Billy Markus and Jackson Palmer.
It was introduced on 6 December 2013, but now it is becoming more and more popular.
Is cryptocurrency safe to invest in?
You might be wondering if cryptocurrencies are safe to invest in.
With all investments the value of your investment can go up as well as down, and you could lose your initial capital. Cryptocurrencies carry a big risk of market volatility.
They are not regulated either.
Investing in cryptocurrencies could be part of a well rounded investment portfolio. If you're new to crypto investments, check The Money Mongers website to learn more about investing in cryptocurrencies like bitcoin and dogecoin.
My personal Dogecoin gains – £786 in less than 24 hours
Okay…let's just say that I have been blown away by Dogecoin.
After winning the Numbrs Payday competition I decided to invest £3,000 of my winnings into Dogecoin.
My thinking was that I didn't have the £3,000 before winning, so I wouldn't miss it if it was gone.
It would have been much safer to make mortgage overpayments, or invest it into my stocks and shares ISA with Nutmeg, but I didn't.
I bought my Dogecoin on Sunday afternoon, and spent £3,000 which gave me just under 13,000 Dogecoin. In USD this was $4,100 (rounded up).
By just before lunchtime on the Monday my Dogecoin was worth $5,200 (rounded down).
That's $1,100 gain in less than 24 hours, or approximately £786.
Please continue to read the rest of the blog post before rushing out and buying a ton of Dogecoin.
Should you buy Dogecoin?
Before you start investing (of any kind) many people suggest that you are debt-free and have an emergency fund behind you.
I believe that this would be the best case scenario, but I also love the thrill of investing whether it is stocks and shares or buying Dogecoin.
I cannot tell you whether it is worth investing in Dogecoin as that depends on your own financial situation.
How to buy Dogecoin
If you decide that you do want to buy Dogecoin then you can get started by using the app Binance.
You will need to start off with at least £15, and have some ID (passport or driving license) in order to validate your account before you can buy Dogecoin.
Binance take a 1.8% fee if you fund your account using a credit or debit card, but it is free to fund via a bank transfer.
Once you have funded your account you can buy Dogecoin – there is a small transaction fee per purchase. I paid a 0.1% transaction fee – that was £3 on £3,000 worth of Dogecoin.
You can also buy Dogecoin via Ziglu. When you sign up, deposit £1 and buy cryptocurrency, you'll get a FREE £5 added to your account. This is withdrawable cash.
When should you sell your Dogecoin?
I would strongly recommend that before you get into buying Dogecoin, you have a plan for your Dogecoin.
Do you want to double your money?
Earn a certain amount of money?
Sell your Dogecoin once it hits $1?
Watch it increase and then withdraw your initial investment so that everything else is pure profit?
Knowing what your goal is before you start means that you can play around with Dogecoin a little more safely – especially if you withdraw your initial investment so that it hasn't ‘cost' you anything.
Other cryptocurrency offers
If you are interested in investing with cryptocurrency then there are two fantastic offers at the moment. When you sign up to Ziglu, deposit £1 and buy £1 worth of Bitcoin then you will get £5 for free, and if you sign up to Luno, buy £100 worth of cryptocurrency you will get £10 free.
