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How to buy Dogecoin on eToro: a step-by-step guide by Coinpaper

On the eToro platform, you can buy and sell Dogecoin for as low as $10 and copy experienced DOGE traders to step up your crypto game.

Taisiia Prosvirova8 min read

28 July 2023

What is Dogecoin?

Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer in 2013 as a more light-hearted and funnier version of Bitcoin. This humorous coin is based on the Internet meme, which features a Shiba Inu dog surrounded by phrases in deliberately broken English that represent the dog's internal monologue.

What makes Dogecoin valuable?

The value of Dogecoin, like any other crypto, is derived from a collective belief in its worth and the cost of producing one coin. Since cryptocurrencies aren't backed by a physical good like gold or a government like fiat currencies, their value is primarily influenced by supply and demand dynamics within the market. Dogecoin's worth specifically is also boosted by its active and enthusiastically bullish community, widespread recognition due to media attention, and its use in various online tipping and microtransaction services.

The production cost of Dogecoin refers to the energy and hardware requirements miners need to verify transactions and add them to the Dogecoin blockchain, a process that also mints new Dogecoin as a reward for their efforts. This 'proof-of-work' consensus algorithm, like that of Bitcoin and previously Ethereum, secures the network but can also contribute to the coin's value, as miners are unlikely to sell below their production cost.

However, it's important to note that the price of all meme coins, including Dogecoin, can be highly volatile. This volatility can be driven by a variety of factors, such as market sentiment, macroeconomic trends, technological developments, regulatory news, and high-profile endorsements, to name just a few. That being said, while Dogecoin and other cryptocurrencies have the potential for high returns, they also carry a significant risk of capital loss.

What is eToro and who is it for?

eToro is a global online trading platform that offers a variety of financial instruments to invest in, including stocks, crypto, commodities, fiat currencies, and indices. Launched in 2007, eToro became a trailblazer in social trading, rolling out a unique feature that allows users to copy the investment strategies of pro traders on the platform.

eToro caters to a wide range of users, from beginners to seasoned investors. For finance newcomers, eToro offers a beginner-friendly interface, educational resources, and the above said social trading features. Thanks to it, aspiring investors can learn from more experienced peers and develop a solid understanding of the market dynamics before deciding where to put their money.

For seasoned traders, eToro provides a robust set of tools and analytics, allowing them to perform detailed technical analysis and execute complex trading strategies. Additionally, eToro offers a range of trading options, from manual trading to copy trading and automated portfolio management.

Opening an eToro account

Before you can trade crypto and stocks on eToro, you should first create account on the platform. Luckily, opening an account on eToro is a simple and straightforward process that won't take more than a couple of minutes, provided that you have all your documents at hand. First, you will need to navigate to the official eToro website or app. There, you should click on the 'Sign Up' button, typically found in the top-right corner of the page. Fill in your username, password, and email address and check in boxes for accepting eToro's terms and conditions, privacy policy, and risk disclosure statement.

After submitting the form, eToro will send a verification link to your provided email address. Click on the link to verify your account. Next, you will be asked to complete your profile. This includes providing additional personal information, answering questions about your financial status and trading experience, and verifying your identity and address. eToro, like all regulated financial institutions, is required to conduct 'Know Your Customer' (KYC) checks to prevent money laundering, so grab your ID as well.

Keep in mind that verification can take a few days, so arm yourself with patience. Once your account is set up and verified, you can deposit funds and begin trading on the eToro platform. Click on the 'Deposit Funds' button and follow the instructions. You can choose the preferred payment method that suits you best, including credit and debit cards, bank transfers, wire transfers, and PayPal.

Buy Dogecoin on eToro in 5 Easy Steps

Now that you have already set up your eToro account, it's time to purchase Dogecoin! With eToro, buying Dogecoin is comparable to purchasing stocks from an online broker, thanks to its intuitive and user-friendly interface. Here are the five simple steps you have to follow:

Fund your account: Before you can buy Dogecoin on eToro, you need to deposit funds into your eToro account. You can do this by navigating to the 'Deposit Funds' option, usually found under the 'Balance' menu. eToro accepts a wide range of payment methods, including credit cards, debit cards, PayPal, bank transfers, and more.

Locate Dogecoin on the eToro dashboard: In the search bar at the top of the screen, type in 'Dogecoin' or 'DOGE' and select it from the dropdown menu.

Click on 'Buy': Once you're on the Dogecoin page, you will see a 'Buy' button. Click on this to open the trading window.

Enter your trade details: In the trading window, specify the amount of money you want to invest in Dogecoin. You can also set stop loss and take profit levels in your eToro account settings if you wish.

Confirm the trade: Once you've entered all the details, click on 'Open Trade' to confirm your purchase.

And that's pretty much it! Once your purchase is complete, you can store Dogecoin in an eToro digital wallet or transfer it to a third-party wallet like Metamask.

Bottom line

We hope that our guide on how to buy Dogecoin on the eToro trading platform was helpful and made the whole process more simple and enjoyable for you. Remember, investing in cryptocurrencies can be risky, and prices can be highly volatile. Always do your own research and never invest more than you can afford to lose. Happy trading!

FAQ

Is eToro Dogecoin trading safe?

Yes, eToro is a legit and reputable broker trusted by millions of users worldwide. However, while eToro itself is considered safe due to its regulatory compliance and long-standing operation, it is worth keeping in mind that trading cryptocurrencies like Dogecoin comes with a lot of risk. The crypto industry is notoriously volatile, and asset prices can fluctuate widely in short periods. For that reason, there's a real chance to lose a substantial portion, or even all, of your investment.

What other cryptocurrencies I can buy on eToro?

Besides purchasing Dogecoin, you can also buy a slew of the world’s most popular cryptocurrencies from eToro. At the time of writing, cryptos available for trading on the investment platform are:

Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), Litecoin (LTC), Dash (DASH), Stellar Lumens (XLM), NEO (NEO), EOS (EOS), Cardano (ADA), IOTA (MIOTA), Zcash (ZEC), TRON (TRX), Tezos (XTZ), Binance Coin (BNB), Compound (COMP), Chainlink (LINK), Uniswap (UNI), Yearn.finance (YFI), Aave (AAVE), Algorand (ALGO), Decentraland (MANA), Basic Attention Token (BAT), Polygon (MATIC), Spark (FLR), Maker (MKR), Enjin (ENJ), and Shiba Inu (SHIB).

Can I have an eToro account if I am a US citizen?

Yes, you can. eToro is available in almost all states except American Samoa, Guam, Hawaii, Minnesota, Nevada, New York, Puerto Rico, and US Virgin Islands. Note, however, that eToro can't provide services to US citizens who reside outside the country for regulatory reasons.

Can I lose money with Dogecoin?

The answer is yes. Investing in any form of cryptocurrency, including Dogecoin, comes with inherent risks that can indeed lead to loss of funds. Aspiring successful investors should always factor crypto's famed volatility into their risk estimates, and are advised to put in crypto just as much money as they can afford to lose.

What is the market cap for Dogecoin?

At the time of writing, the market capitalization of Dogecoin exceeds $11 billion, which makes it the seventh-largest cryptocurrency, placing DOGE between USDC stablecoin ($26 billion) and Cardano's ADA ($10 billion).

What is the all-time high for Dogecoin?

According to data from CoinMarketCap, Dogecoin reached its all-time high on May 8, 2021, trading at $0.7376 at the time. The price of DOGE skyrocketed in value in the lead-up to Elon Musk's Saturday Night Live appearance but crashed sharply after the billionaire talked about it on the show.

Where else can I purchase Dogecoin?

As one of the most popular cryptocurrencies, Dogecoin can be purchased on all major digital currency exchanges, including Binance, Coinbase, Kraken, and KuCoin. Alternatively, you can also buy Dogecoin from p2p marketplaces and decentralized exchanges such as Uniswap.

What is eToro CopyTrader?

eToro's CopyTrader is the platform's most iconic feature that allows users to copy the moves of other successful traders, effectively creating a form of automated trading. With this tool, those who might lack the time or expertise to manage their trades in detail can see how real professionals handle their investments, find and follow investors they like, and copy their trades with just a few clicks.