How To Buy Dogecoin On eToro In 2024 [A Step-by-Step Guide]

Updated On: 07/29/2023
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The dynamic world of cryptocurrency is teeming with a diverse range of digital coins among which Dogecoin has emerged as a leader. Boasting an impressive market presence, Dogecoin's popularity has seen a massive surge recently.

This once underdog has fetched mainstream recognition and attracted an ample number of investors globally.

For budding investors and current ones looking to diversify their portfolio, knowing how to buy Dogecoin on eToro can be immensely beneficial.

Being one of the most user friendly and secure trading platforms in the market, eToro has become the go to for many cryptocurrency enthusiasts.

This platform permits the trading of several virtual currencies including Dogecoin, thereby making it an instrumental aide for your investment journey in this evolving fiscal terrain.

As we delve into this guide, let's prepare you to confidently traverse through the exciting realm of Dogecoin on eToro!

What Is Dogecoin?

What Is Dogecoin?

Dogecoin emerged in 2013, originally as a meme and satirical take on Bitcoin's growing popularity.

Created by software engineers Billy Markus and Jackson Palmer, Dogecoin is renowned for its Shiba Inu logo from the "Doge" meme.

The coin utilized scrypt technology and had an unlimited supply, which set it apart from Bitcoin with capped resources at 21 million.

Over time, the popularity of Dogecoin has soared. Here are some factors explaining its popularity rise:

  • Fun and Engaging: Dogecoin materialized as a fun way to familiarize people with the somewhat intimidating concept of cryptocurrency. With its vibrant community and informal branding, it quickly grasped people’s attention.
  • High-profile Endorsements: Celebrities like Elon Musk and Mark Cuban have tweeted in favor of Dogecoin, which inevitably boosted its prominence amongst digital currency enthusiasts.
  • Low Entrance Barrier: Its relatively low value compared to other cryptocurrencies like Bitcoin makes it more accessible to new investors.

As for value proposition over other cryptocurrencies, Dogecoin offers the following key benefits:

  • Quick Transaction Times: Unlike Bitcoin which can take up to 10 minutes per transaction, Dogecoin offers faster transactions with a block time of only one minute.
  • Low Fee Structure: Given its lower price point compared to other cryptocurrencies, transaction fees in the Doge economy are significantly reduced.
  • Unlimited Supply: With no cap on how many Dogecoins can be produced unlike Bitcoin or Ethereum’s hard caps, this creates inherent inflationary pressure that may potentially stabilize prices in the long run.

What Is eToro?

Founded in 2007, eToro is a social trading and multi asset brokerage company. eToro has successfully captured the interest of traders worldwide, thanks to its extensive range of investment choices and innovative social features.

Some of eToro's characteristic selling points are:

  • User-Friendly interface: eToro's platform is designed to be simple yet sophisticated, making it appealing to both novice traders and experienced investors. The web based platform boasts an intuitive layout that permits easy portfolio management, while real time charts & market rates aid decision making.
  • Diverse Portfolio Offerings: Besides offering a variety of typical assets such as stocks, commodities, indices, and currencies, eToro also provides an option to trade popular cryptocurrencies (including Dogecoin). This breadth of offerings enables the user to diversify their portfolio effortlessly on one single platform.

Unsurprisingly, safety and credibility are crucial considerations when choosing a trading platform. Here's how eToro measures up:

  • Regulated by Reputed Authorities: eToro operates under leading financial authorities such as the Cyprus Securities Exchange Commission (CySEC) and the Financial Conduct Authority (FCA), providing users with reassurance about its credibility.
  • Secure Platform: Advanced security measures like SSL encryption are in place along with two-factor authentication (2FA) during login for layering protection.

Global acceptance of eToro is evident from its wide user base over 20 million users across more than 100 countries can't be wrong.

Its ability to combine traditional trading principles with modern technology has earned it a reputable standing in the realm of crypto trading platforms.

How To Set Up An eToro Account

How To Set Up An eToro Account

Initiating your journey into crypto trading begins with creating an account on eToro. Here is an easy guide to help you through the process step by step:

Step 1: Head over to the eToro website and click on the "Join Now" or "Sign Up" button. Fill in the required fields with relevant information such as your name, email address, username, and desired password.

Step 2: You will then have to accept eToro's Terms and Conditions and Privacy Policy. It's highly recommended you take a few minutes to read these documents for a clear understanding of how eToro operates.

Step 3: Following successful initiation, you will need to confirm your account via an email sent by eToro service. Access this email and click on the provided link to verify your account.

Next up in creating the account is the KYC (Know Your Customer) process. This universally accepted protocol is critical in preventing identity theft, fraud, money laundering, and other illegal activities. The following documents may be required during this phase:

  • A valid form of identification (passport or driving license preferred)
  • Proof of address (like a bank statement or utility bill issued within recent months)

Once all documents are submitted satisfactorily, eToro typically takes a couple of business days to verify them.

Post successful verification, you can navigate around eToro smoothly thanks to its user centric design:

  • Dashboard: It serves as a control panel giving quick access to various platform features.
  • Watchlist: Here, you can add cryptocurrencies (like Dogecoin) that pique your interest for quick access.
  • Portfolio: It provides real time tracking of all investments a comprehensive glance at what stocks or cryptocurrencies you own.
  • Trade Markets: This section lays out numerous investment options ranging from cryptos to commodities that eToro offers.
  • News Feed: Stay updated with real time market events affecting your portfolio directly from this section integrated with social media like updates.

Funding Your eToro Account

Once your account has been created and verified on eToro, the next step is to fund your account.

Depositing funds into your eToro account is a simple process, and they offer a variety of methods to make it as convenient as possible.

Different Methods for Depositing Funds

  • Credit or Debit Cards: This method allows for instant deposits.
  • PayPal: This popular online payment system can be used if you have an account.
  • Bank Transfer: You can directly transfer funds from your bank; however, this may take up to several business days.
  • Neteller or Skrill: These E-wallet services can be used if you hold accounts with them.

How to Deposit Funds

The following steps will guide you through the funding process:

  • Navigate to the 'Deposit Funds' button found on the left bottom corner of your dashboard.
  • Choose your preferred method of deposit (as stated above) and enter all necessary details.
  • Enter the amount you wish to deposit (keep in mind the minimum deposit amount) and finalize by confirming payment.

Do note that processing times vary based on the choice of deposit method while electronic wallets and card payments are usually instantaneous, bank transfers may take several working days.

Potential Transaction Fees, Limits, and Processing Times

Transaction fees are an inevitable part of trading platforms here's how eToro stands:

  • Deposit Fees: Thankfully for users, eToro does not apply any deposit fees! They do charge a conversion fee if the deposit is placed in any currency other than USD so remember it’s best always to transact in USD.
  • Withdrawal Fee: eToro levies $5 per withdrawal transaction with a minimum withdrawal limit of $30
  • Inactivity Fee: Accounts inactive for 12 months will be charged a $10 monthly fee.

How To Buy Dogecoin on eToro

How To Buy Dogecoin on eToro

With your eToro account now ready and funded, it's time to make the first exciting step into cryptocurrency trading.

Buying your first Dogecoin is simpler than you may think. Follow these steps, and in no time, you'll be an active participant in the Dogecoin market.

1. Locating Dogecoin on Your Dashboard

Your eToro dashboard is like your personal headquarters for trading. Here's how to find Dogecoin:

  • Using Search Functionality: At the top of your dashboard is the 'Search Markets' bar. Enter 'Dogecoin' or 'DOGE' here to quickly get results related to this cryptocurrency.
  • Understanding Market Pages: Clicking on 'Dogecoin' will redirect you to its market page where real time data and graphs display its current price, daily highs and lows, and other essential statistics.

Having the ability to interpret these charts correctly can significantly enhance your trading strategy.

  • Price Graph: This graph shows price fluctuations over time which allows traders to identify trends or patterns that can help decide when to buy or sell.
  • Candlestick Chart: Each candlestick represents a specific time period (which can be set by the trader), and reveals the opening, closing, high, and low prices within that period.
  • Volume Bar Graph: Found below the candlestick chart, which indicates how many Dogecoins have been traded during each period a tool often used by traders looking for significant price movements for potential trading opportunities.

Thoroughly understanding these graphs will enable more thought out decision making when trading cryptocurrencies like Dogecoin.

Being well informed not only about how much one invests but also when one invests forms an integral part of success in this volatile crypto word.

2. Making Your Purchase

You've successfully created your eToro account, have funded it, and located Dogecoin on your dashboard. You are now thrillingly close to owning your first slice of the Dogecoin pie. This section will guide you through the final steps.

Deciding Your Purchase Volume

Before initiating the purchase, you will need to decide on how many Dogecoins to buy. The number can be determined based on either the total cost you're willing to incur or the number of Dogecoins desired. Make sure to take into account the following:

  • Investment Capacity: Evaluate how much you're willing to invest while bearing in mind potential risks associated with investing in volatile cryptocurrencies.
  • Market conditions: Analyze prevailing market conditions and historical trends of Dogecoin prices before making a decision.
  • Portfolio Diversification: Consider your current investment portfolio and the role of Dogecoin within it for a well diversified strategy.

Confirming Your Transaction

Once you've decided on your purchase volume, follow these steps to finalize your transaction:

  • On your eToro dashboard, click 'Trade' on the selected Dogecoin market page.
  • A trading ticket will appear where you can adjust by using arrows or enter manually the amount (in USD) or units (number of Dogecoins).
  • Take note of stop loss level, leverage applied (leverage multiplies your investment by x2 or more but also multiplies potential losses), and take profit level.
  • Once comfortable with all entered data hit "Open Trade" button.

3. Monitoring Your Investment Post-Purchase

Now that you're a proud Dogecoin owner, keeping track of your investment is the next vital step. Staying ahead of the game requires continuous monitoring of your holdings and staying updated with market trends.

Keeping Track Of Market Trends

  • eToro's dashboard provides real time price movements, making it easy to track how your investment is faring.
  • Leveraging news & social feed sections within eToro can keep you updated with real time marketplace news and actions.
  • Regularly checking in on cryptocurrency forums or news sites can also provide valuable insights into prevailing market trends.

Strategies for Protecting Your Investment

  • Diversification: It’s always wise not to put all eggs in one basket spread out investments across various cryptocurrencies for effective risk management.
  • Take Profit & Stop Loss limits: Setting these limits could automatically close a trade saving from extensive potential losses while also safeguarding profits when the set target is reached.
  • Stay Updated: Given high volatility in cryptocurrency markets, staying atop global economic chances that could impact your investment like regulatory changes or technological developments can guide more informed decision making.

Tips For Trading Responsibly On eToro

While trading in cryptocurrencies can be rewarding, it involves a fair share of risks due to market fluctuations. Here are some tips to trade responsibly on eToro:

Guidance About How Much One Should Invest Into Cryptocurrencies

An essential principle in investment is not spending more than what you can afford to lose. While no definite limit applies universally, it's advised not to invest more than 5-10% of your income into risky investments like cryptocurrencies.

Suggestions About Diversifying Your Investment Portfolio

Diversification is crucial for a healthy investment portfolio. Spreading your investments across varying sectors or assets can help absorb shocks if any one sector faces a downturn.

  • Don't just invest in Dogecoin or even solely in cryptocurrencies. Consider other potential assets like stocks, bonds, ETFs which eToro aptly provides.
  • Even within cryptocurrencies, diversify by investing in different types such as Bitcoin, Ethereum and Litecoin, among others for an effective risk management strategy.

Reminders About The Uncertainties In Crypto-Trading

Finally, always remember the inherent uncertainty associated with crypto-trading:

  • The value of cryptocurrencies is extremely volatile with price swings within short time frames being prepared for significant ups and downs helps.
  • Never indulge in panic buying or selling; informed decisions always trump emotional reactions.
  • Do thorough research and stay updated with the latest news concerning cryptocurrency regulations which might impact your investments.

FAQs Around How To Buy Dogecoin On eToro

how to buy Ethereum on etoro

To buy Ethereum on eToro, simply create and fund your account, search for 'Ethereum' or 'ETH', click on 'Trade', enter your desired investment amount, and confirm the transaction.

how to buy bitcoin on etoro

Buying Bitcoin follows the same process as Ethereum; just search for 'Bitcoin' or 'BTC' in the search bar, click 'Trade', input your preferred amount and then confirm.

buy tesla stock on etoro

Purchasing Tesla stock is straightforward on eToro. Just type in Tesla or TSLA in the search field, click on trade, set your desired investment amount and then confirm.

apple stock price on etoro

To check Apple's stock price on eToro, look up 'Apple' or ‘AAPL’ in the platform's search bar to view updated real time information.

cheapest crypto on etoro

The cheapest crypto on eToro varies due to market fluctuations. Visit the ‘Crypto’ section under ‘Trade Markets’ to compare prices of different cryptocurrencies.

How quickly can I buy Dogecoin after depositing funds into my eToro account?

Once your funds have been deposited into your eToro account, you can buy cryptocurrencies like Dogecoin instantly.

How secure is my investment in Dogecoin on eToro?

While investments always involve some level of risk, eToro has implemented several measures to protect user accounts, including SSL encryption and two factor authentication during login for added security.

Are there any transaction fees when buying Dogecoin on eToro?

While deposits are free, keep in mind that there will be conversion fees in case the deposit was not in USD. When selling your Dogecoins or withdrawing money from the platform altogether, certain minimal charges may apply.

Conclusion

Venturing into the world of cryptocurrency, especially with a dynamic digital asset like Dogecoin, can seem daunting at first.

As we've unmasked the process step by step in this guide, it's clear that platforms like eToro have made investing in Dogecoin a convenient and user friendly experience.

Details from account setup, purchasing methods to understanding transaction nuances; all contribute to making your journey of learning how to buy Dogecoin on eToro fairly straightforward.

The dynamic trading environment warrants informed decisions and circumspect strategies, but these hurdles should never deter a potential investor.

As persistence is a steadfast ally in navigating the volatile curves of cryptocurrency markets keep learning, keep evolving and happy trading!

Michael Restiano

I support product content strategy for Salt Money. Additionally, I’m helping develop content strategy and processes to deliver quality work for our readers.

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