Dogecoin is one of the most trending cryptocurrencies that have managed to attain such popularity. Due to power in the community, this cryptocurrency keeps on boarding a large number of people. Being a newbie to crypto or even looking at diversifying your portfolio would be highly useful if you know how to buy and store dogecoin for holding in short-term and long periods.
How to Buy Dogecoin
And it’s easy to get Dogecoin by some ways. Read the step-by-step guide on how to buy dogecoin safely.
Step 1: Choose a Cryptocurrency Exchange
Select one reliable cryptocurrency exchange to buy and hold your dogecoins. Here are some of the most popular ones: Binance, Coinbase, Kraken, KuCoin, etc. That an exchange is secure and has low transaction fees is enough, though easy to use would be sufficient.
Step 2: Register
Choose an exchange and register using your email address and set a good password. Most of the exchanges ask for proof of identity before any trade can be executed. So, you have to be prepared to upload your identification documents.
Step 3: Fund Your Account
After signing up in an exchange, you will need to fund the account with money to enable you buy Dogecoin. This can be done through bank transfers, credit/debit cards, or other cryptocurrencies.
Step 4: Buy Dogecoin
Click on the trading section for Dogecoin and then on the amount of which you wish to purchase, wherein you can use fiat money or trade it against another cryptocurrency such as Bitcoin or Ethereum.
Step 5: Confirm and Store Safely
When you buy Dogecoin, you must confirm your purchase and send it to a safe wallet for storage. You should not hold your Dogecoin in an exchange. You should store it in a reliable wallet.
How to Store Dogecoin Safely
The second most important thing after buying Dogecoin is how to keep it secure. Here are the best storage options to secure your Dogecoin:
Hot Wallets (Software Wallets)
The online wallets are called hot wallets. It is easy for anyone to access his Dogecoin. Some of the popular ones include Trust Wallet, Exodus, and Atomic Wallet. They are very convenient, but at the same time, very easy to hack into. Therefore, they are suited better for short-term storage use.
Cold Wallets (Hardware Wallets)
A dog should store for the long term in a cold wallet. For example, Dogecoin can be stored in the Ledger Nano X and Trezor hardware wallets, where the coins never go online, hence being safe from cyber attacks. The best thing to do is store coins in paper wallets if the investors hold Dogecoin for long periods.
Another non-hackable form of long-term storage is a paper wallet. In this, the only thing needed to be done is to print the private keys on paper, and then secure them for further storage. The one that does not face any hacking issue on the internet, but very likely to be misplaced or damaged.
Custodial vs. Non-Custodial Storage
- Custodial Storage: Some exchanges even have wallet services but these hold your private keys on your behalf. It is more convenient, in a way; however, less safe because then you never own your coins.
- Non-Custodial Storage: A trust wallet along with Ledger facilitates one to own one’s own private key as well, subsequently giving one freedom and security when it comes to one’s control over Dogecoins.
Final Thoughts
Understanding how to buy and store Dogecoin is quite important to a new or seasoned investor. The buying of Dogecoin is not that complicated, but keeping it safe in the wallet so that it is not hacked through cyber attacks or other unauthorized means is essential. Therefore, the issue is not really about the cold and hot wallets, but best practices always help to keep it secure.
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