Dogecoin Trading – Tutorial and Brokers

Dogecoin is a booming cryptocurrency based on the popular Doge meme. Originally created as a joke, Dogecoin trading has seen record growth that has resulted in many investors taking this crypto seriously. In this review, we cover what Dogecoin is, how to buy and store the token, and the pros and cons of trading this popular crypto.

DogeCoin Brokers

#1 - eToro USA

Why We Chose eToro USA

eToro US offers 24 tradeable cryptoassets, with just a 1% buying/selling fee added to the spread. Additionally, there are 80 different coins available through the broker’s proprietary wallet service. You can also practice your crypto strategies easily by switching between live and demo mode. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.

"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, DASH, LTC, ETC, MIOTA, XLM, EOS, NEO, ZEC, XTZ, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, ALGO, MANA, ENJ, BAT, MATIC, FLR, SHIBxM
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 0.75%
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: eToro Trading Platform & CopyTrader
  • Minimum Deposit: $10
  • Regulator: SEC, FINRA

About eToro USA

eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.

Pros

  • The online broker offers an intuitive social investment network with straightforward copy trading on cryptos
  • The $10 minimum deposit and straightforward account opening process means beginners can get started quickly
  • The broker's Academy offers comprehensive learning materials for beginners to advanced-level investors

Cons

  • The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools
  • There's no MetaTrader 4 platform integration for traders who are accustomed to using third-party charting tools
  • There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos

#2 - IG

Why We Chose IG

IG's modest selection of 11 crypto CFDs trails top crypto brokers like Vantage which offers 40+ tokens. That said, it stands out with its crypto index, which tracks the value of the top 10 digital currencies by market cap and provides a holistic way to speculate on the value of the crypto market.

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

- DayTrading Review Team
  • Coins: BTC, BCH, LTC, ETH, ADA, DOT, DOGE, LINK, UNI, XLM
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Variable
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
  • Minimum Deposit: $0
  • Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA

About IG

Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

Pros

  • IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, providing ample diversification opportunities
  • IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
  • The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our Best Trading App award

Cons

  • Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
  • Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
  • While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients

#3 - Pocket Option

Why We Chose Pocket Option

Pocket Option offers a modest crypto offering with 10+ digital currencies including Bitcoin and 65+ tokens if you deposit $1000. The integrated analytics feature in the platform is helpful for finding opportunities, while the daily signals service makes it straightforward to act on short-term crypto opportunities.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, LINK, AAVE, ALGO, TLM, ALPP, ANT, AVAX, AXS, BNB, ADA, CHZ, COMP, ATOM, DASH, MANA, DGB, DOGE, ENJ, EOS, FIL, GLMR, ILV, ICP, KAVA, LTC, MKR, MASK, MIOTA, XMR, ALICE, NEAR, NEO, NULS, OMG, DOT, MATIC, QTUM and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: N/A
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Web, MT4, MT5
  • Minimum Deposit: $50
  • Regulator: MISA

About Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

Pros

  • The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks
  • Extremely fast and smooth sign-up process that takes less than 2 minutes
  • The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries

Cons

  • Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
  • Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests
  • The MISA is a weak regulator with limited investor protection for retail traders

#4 - IQCent

Why We Chose IQCent

IQCent offers 17 crypto pairs through its proprietary terminal, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is capped at 1:10, whilst binary options payouts vary by token but remain competitive. OTC assets, for example, pay out up to 95%.

"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "

- DayTrading Review Team
  • Coins: BTC, ETH, LTC, ETC, DOGE, MATIC, QNT, SOL, XRP, USDT, XMR, BNB
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Variable
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Online Platform, TradingView
  • Minimum Deposit: $250
  • Regulator: IFMRRC

About IQCent

IQCent is an offshore binary options and CFD broker based in the Marshall Islands. The brand continues to offer a range of unique account types with bonuses and perks, including payout boosts, TradeBacks and free rollovers. With 100+ assets, around-the-clock trading and 98% payouts, the firm is popular with aspiring short-term traders.

Pros

  • Keen traders can take part in trading contests with cash prizes
  • There's an accessible $0.01 minimum stake for new day traders with a small budget
  • The broker's 24/7 customer support is fast and reliable, responding within 1 minute during tests

Cons

  • The market analysis is very basic with limited technical summaries and insights from analysts
  • IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
  • The broker is not overseen by a respected regulator, though this is common among binary options firms

#5 - Videforex

Why We Chose Videforex

Traders can speculate on crypto prices in pairs with USD and CNY through binary options and CFDs. The range of digital currencies is fairly narrow vs alternatives but major tokens like Bitcoin are available.

"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."

- DayTrading Review Team
  • Coins: BTC, ETH, QUANT, UNI, SOL, BNB, DOGE, XRP, XMR, MATIC, USDT
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Floating
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: TradingView
  • Minimum Deposit: $250

About Videforex

Launched in 2017, Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.

Pros

  • Videforex allows you to enter positions with just ¢0.01
  • You can easily mirror the trades of experienced investors with low fees
  • Videforex regularly runs trading contests, offering great practice opportunities and cash prizes to beginners and experienced traders

Cons

  • US clients aren’t accepted due to legal restrictions
  • The broker isn’t overseen by a trusted regulatory agency
  • No MetaTrader 4 integration

What Is Dogecoin?

Originally a satirical cryptocurrency based on the Shiba Inu dog breed meme, Dogecoin (abbreviation DOGE) has now become one of the leading altcoins, regularly reaching new record prices. In May 2021, it was announced as the fourth most valuable cryptocurrency, with a market capitalisation of $69 billion – up from $2 billion just three years ago.

Its huge popularity has resulted in fans downloading Dogecoin Zoom backgrounds, the Doge Reddit community raising money to sponsor a NASCAR driver, and even using fundraisers to send the Jamaican bobsled team to the Winter Olympics.

Dogecoin trading

Dogecoin History

Dogecoin was developed by Jackson Palmer and Billy Markus using the same underlying algorithm as Litecoin. It was originally created as a solution to internet banking fees rather than a competitor to other mainstream cryptocurrencies such as Ethereum and Bitcoin. The official website describes Dogecoin as an ‘open-source peer-to-peer digital currency’, with developers able to contribute to the code on Github. However, its recent price surges have exceeded all expectations, shown in Dogecoin one year charts.

Like many other cryptocurrencies, Dogecoin is based on blockchain technology and uses the proof-of-work mechanism. This requires members to solve complex algorithms for verification, known as mining. The Scrypt algorithm which it shares with Litecoin makes it easy to mine without complex equipment and has a lower hash rate, which means it uses less computational power. However, its transaction confirmation time of just 6 minutes (compared with 15 minutes for Litecoin and 60 minutes for Bitcoin) is what makes Dogecoin so suitable for payments and transfers.

Another unique element of Doge is its unlimited supply. This is a bonus for miners as the reward does not decrease with the number of coins already mined. However, it does make Dogecoin very sensitive to inflation (while most other currencies are subject to deflation).

The founders’ goal is to keep the same quantity of Dogecoins in circulation (approximately 100 billion), with new coins replacing those that have gone missing in lost crypto wallets.

Dogecoin Price Chart

Pros Of Trading Dogecoin

There are several reasons to trade Dogecoin:

Cons Of Trading Dogecoin

However, traders should be aware of the risks associated with trading Dogecoin:

Future Price Forecasts

The rapid increase in Dogecoin price has resulted in many traders suddenly taking an interest in this crypto. So what is the Dogecoin 2024, 2022, 2025 or even 2030 price prediction?

Currently, Doge has a highly active community, across sites such as Reddit, Discord, Quora and YouTube, so it’s unlikely that interest in this cryptocurrency is likely to dwindle anytime soon. In particular the community is focussed on getting Dogecoin ‘to the moon’ – a goal of a single Dogecoin being worth 1 dollar. Dogecoin also has a very valuable use case, being a fee-free method of making internet payments, meaning it does have some underlying worth.

Many people carry out analysis on Doge, such as Zakaria M, a well know-crypto trader, who in 2020 predicted that the value of a single Dogecoin would be 1 dollar within 5 years.

However, there’s no doubt that the value of Dogecoin has increased exponentially due to its novelty factor and publicity, including the impact of influencers, which is extremely difficult to predict using fundamental trading analysis. It’s more likely that big names such as Elon Musk will have more influence on the price of cryptos in the short term, with the longer 5 and 10-year forecast more likely to reflect the actual underlying value of Doge, so traders should set their expectations accordingly. For example, there is a lot of speculation around whether Amazon founder Jeff Bezos will back Dogecoin, which could cause the price to skyrocket.

How To Buy, Store & Trade Dogecoin

Now we’ve explained what Dogecoin is, we’ll cover how to buy, store and trade it.

Crypto wallets are used to store cryptocurrency and can be either hardware or software, online or offline. Each wallet has a public key that is used to identify the wallet (and therefore the Dogecoins), enabling payments to be received. It is used in combination with a private key which only the owner has access to, to send transactions.

Traders can buy cryptocurrency through an exchange. Some exchanges offer a wallet as part of their service, though these may not be as secure as using a personal crypto wallet. An exchange is a simple way to buy and own the underlying asset, with the exchange facilitating the trade between the buyer and seller at an agreed rate and charging a fee for the service. An example of this is exchanging GBP for Dogecoin. Exchanges are the most common choice for crypto holders that are looking to buy and hold Doge for a set period of time.

How to start trading Dogecoin

Another option is to use a broker to trade cryptocurrency. When using a broker, the trader can deposit funds in return for access to more trading tools such as leverage and additional asset options. Brokers are the best choice for higher deposit amounts, or if more trading flexibility is required. For example, a trader could deposit USD and use it to speculate on the price of DOGE/XRP, without owning the underlying currency.

Here we discuss some of the specific options available:

Trading Wallets

Dogecoin Core is the official Doge wallet that has a high level of security, but offers limited features via a basic user interface. Alternatively, The Trezor Model T is one of the most popular hardware wallet options that supports Dogecoin. The highly-rated Ledger Nano X hardware wallet is also a great choice for traders looking to manage their Dogecoin through a dedicated app, which makes the public key accessible for payments via QR code.

Zengo is the first keyless crypto wallet that also offers Dogecoin storage, available as an app on Android and iOS. Funds are encrypted using a 3D biometric face scan, removing the need to remember passwords at login.

Look out for updates on the digital bank Revolut, which plans to support Dogecoin soon.

Trading Brokers

One of the best platforms to buy Dogecoin on is Binance, which offers an e-wallet accessible by app, called the Trust Wallet. Alternatively, Kraken is a trusted exchange that offers Doge to traders in countries including the UK and US, however it does not provide a wallet service. In India, Zebpay is a popular option to purchase Dogecoin. Unfortunately, Doge is not yet supported on Coinbase.

Dogecoin is also available on eToro, or US customers can buy and trade Doge for free on Robinhood. However, it is not possible to buy Dogecoin on Trading 212.

See our top list of DogeCoin Brokers for all brokers that are available in your location.

Trading Tips

Here we list some top tips for trading Dogecoin:

Final Word On Trading Dogecoin

Dogecoin is a cryptocurrency that has seen soaring prices in a short period of time. Originally created as a joke using the Shibu meme logo, its huge price jump has placed it among the top crypto rankings, catching the attention of day traders in particular. However, traders should beware of the effect influencers can have on the Dogecoin price, which is extremely volatile and unreflective of its underlying value.

FAQ

Is Dogecoin Trading A Joke?

Dogecoin is a real cryptocurrency, though it was originally created as a joke using the Shibu meme logo. One of its strengths is the ability to make fast internet payments without transaction fees.

Is Dogecoin A Good Buy?

Dogecoin may be a good investment for day traders because of its high volatility. However, its potentially high reward comes with equally high risk and is difficult to predict using fundamental analysis. Traders should therefore chance only a very small proportion of their capital on Dogecoin.

Is Dogecoin Trading Halal?

The general consensus is that storing Dogecoin and using it for payments is Halal. If attempting to trade Doge without any analysis, this could be classed as gambling which is Haram. However, scholars have different views on whether crypto trading is Halal so consult your religious leader first.

How Can I Start Buying Dogecoin?

Dogecoin can be purchased on an exchange or traded using a DogeCoin broker. If you want to get started as soon as possible, Binance and Kraken are two leading exchanges where it is possible to buy Doge.

Is Dogecoin Going Up?

While Doge continues to maintain a strong online community presence, it’s likely that the price will remain high. However, its strong dependence on high profile influencers makes even the 2024 Dogecoin forecast extremely difficult to predict.