Investing in Dogecoin in the UK – Is DOGE a Good Investment?

All-time Dogecoin price chart on Coinbase

Dogecoin started as a spoof on Bitcoin in 2013. Even its creator might not have imagined that Dogecoin would find its place among the top 10 cryptocurrencies in 2021! At the time of writing its ranked 12th, heading into 2022.

Many investors buy Dogecoin merely to speculate, following the age-old wisdom of ‘diversifying the portfolio’. That being said, should you invest in Dogecoin or instead go for other meme tokens such as Shiba Inu?

This article will answer every question of yours concerning buying and selling of Dogecoin in the UK.

How to Invest in Dogecoin in the UK

To invest in Dogecoin using the eToro platform, follow the steps below:

1. Open an Account and upload your documents
2. Deposit your Funds
3. Look for Dogecoin
4. Buy Dogecoin

Opening an Account

On eToro you can open an account using a few personal details and uploading a picture of your government-issued ID.

The information that eToro requires you to provide includes Your Name, Date of Birth, National Insurance Number, Address, and Contact Details (mobile and email).

• Select a username and a password.
• Authenticate the process by entering a unique code sent to your mobile phone.

The documents you will need to upload while registering with eToro are listed below:

• Upload your driving license or passport
• Upload your bank account statement/ utility bill for address verification
• Deposits less than $2,250 (around £1,600) do not require you to upload the documents, however, for hassle-free withdrawals, the documents are a must.

Deposit your Funds

Once your account is successfully created, you can deposit fiat funds using debit cards and bank transfers, or cryptocurrencies from other wallets.

Search for Dogecoin

• Go to the search box and type Dogecoin.
• Once it appears, carefully study the pattern and see where it stands at present as compared to its pricing in the week/ month gone by.
• The price of Dogecoin fluctuates every moment depending on various factors. Hence it calls for a patient study before you decide to invest in Dogecoin.

Buy Dogecoin

• Simply select the quantity you wish to buy and confirm your order to proceed successfully.
• Make sure you have enough in your wallet as required to buy Dogecoin (the minimum trade is $10).

Invest in Dogecoin

Your capital is at risk. Cryptoassets are highly volatile and past performance isn’t an indicator of future success. Invest at your own risk.

Is Dogecoin a good investment in 2024?

For many who are looking for answers to the question “should I invest in Dogecoin?”, you are at the right place. The conversations regarding Dogecoin are all over the place and we will help you understand exactly why this is a good investment.

Most investors prefer Dogecoin to multiply their profits. But what are the reasons that are assuring the same? Below are some to consider:

You can start small

The price of cryptocurrencies is skyrocketing. Many people are only able to buy only a fraction of cryptos like Bitcoins. However, if you go for Dogecoin, you can own a complete asset as opposed to fractions. The last month’s price bracket was between $0.16 – $0.25. That basically means that you can invest in a significant amount of Dogecoins without burning your pocket.

Promising Returns

Dogecoin has grown exponentially since the beginning of 2021. From January to May 2021, the rate has increased from $0.004 per token to $0.17 per token. That is an unbelievable 17,000% rise in the stock value. So, it is a great year for your investment in Dogecoin considering its rise pattern.

Cryptoassets are highly volatile and past performance isn’t an indicator of future success. Invest at your own risk.

Elon Musk’s interest in Dogecoin

Tech revolutionaries like Elon Musk have shown much interest in this crypto. He has mentioned Dogecoin a couple of times and it has definitely added to the craze.

Read quotes from Elon Musk on investing in Dogecoin in this list of crypto quotes.

Dogecoin Value

Although, the Dogecoin price is now trading at a lower value than the recent high of $0.71. Nonetheless, one must take into consideration the huge jump from January 2021, which was at $0.004. Given the volatility of the crypto market, many are hoping for a rise in its value in the coming times.

Where can you buy Dogecoin in the UK?

There are several reputable options of online exchanges and brokers to invest in cryptocurrency, including DOGE.

eToro’s CopyTrader feature

Below are some reasons why investors might choose eToro over other trading platforms –

• 20 million active traders trade using eToro
• As a multi-asset broker, eToro offers different financial markets
• CFD markets offered in stocks and forex
• Over 2,400 global shares and 250 ETFs
• Social network with copy trading

Dogecoin vs. other Meme Cryptos

Since the launch of Dogecoin, there have been other cryptocurrencies that have surfaced as a result of jokes or memes. Dogecoin was created in 2013 and it has recently become prominent in the crypto market. Influential entrepreneurs and celebrities like Elon Musk, Mark Cuban, and Snoop Dogg have contributed to its popularity. Following its craze, other ‘meme coins’ have made their entry into the market. Some of these are as under-

• Shiba Inu (SHIB): It was launched in 2020 under the Ethereum Blockhain’s ERC-20 standard. It trades on the Uniswap network. As per Coin Market Cap, its current circulating supply stands at 394,796 billion.
• Under Dog (DOG): It is a community-based project that comes with a special burn and reward mechanism. The fee for every transaction is 5 percent and all holders receive a reward of 4 percent and the burn rate is 1 percent. Its maximum supply stands at 1 billion and it trades on Pancake Swap.
• Kishu Inu (KISHU): Kishu Inu was launched in April 2021. Its community owns the entire stock, implying that it is completely decentralized. As per the norms, 2 percent of every transaction will be received by holders. It trades on a Uniswap-powered decentralized exchange called KISHU Swap. This platform enables the swap of any ERC20 token among holders.
• Floki Inu (FLOKI): Inspired by Elon Musk’s Shiba Inu-breed pet, named “‘Floki.” The Shiba Inu community fans created it as per some claims.
• Doge Killer (LEASH): This is a coin that witnessed growth in September 2021. Operates on the Ethereum Blockchain, its limited supply of 1,07,647 coins makes it highly volatile. It is also known to have a handful of whale accounts, thus influencing the market price.
• Husky Coin (HUSKY): This is another coin that is claimed to be inspired by Elon Musk and Dogecoin. It was created to be controlled by a decentralized community. It has 45 percent of the total supply locked to Uniswap, 5 percent team token, and the remaining 50% burned to the co-founder of Ethereum, Vitalik Buterin.
• DogeFi (DOGEFI): It is a gamified community that enables members to participate in price arbitrage, making it different from other coins. It also gives them access to exclusive yield farming projects. It trades on Coin tiger and has a current supply of 1,000,000 coins.

Buy Meme Coins

Your capital is at risk. Cryptoassets are highly volatile and past performance isn’t an indicator of future success. Invest at your own risk.

Dogecoin vs Bitcoin – Is Dogecoin a Good Investment?

There have been extensive comparisons and analyses between Dogecoin and Bitcoin. Since Bitcoin paved the way for the crypto market to be highly popular among traders, there are bound to be comparisons.  Dogecoin was created a few years after Bitcoin came into existence. The kind of craze that Bitcoin gave rise to led to the creation of Dogecoin.

Let us understand briefly what each of these offers to investors-

• While Dogecoin’s supply of coins is unlimited, Bitcoin’s supply is limited
• Each Bitcoin has a specific mining process. This process is complex and the creation of a new Bitcoin is not as easy as Dogecoin
• Bitcoin has a secure, decentralized ledger to record every transaction
• While Bitcoin’s average time for transferring to other wallets is 10 minutes, Dogecoin’s average time is 1 minute.
• Dogecoin processing is not as complex as Bitcoin
• Bitcoin’s acceptance rate as a currency is higher than Dogecoin
• Bitcoin has faced substantial criticism from environmentalists concerning carbon dioxide (CO2) emissions
• Dogecoin involves no mining and thus has no potential environmental threat

Buy Bitcoin

Your capital is at risk. Cryptoassets are highly volatile and past performance isn’t an indicator of future success. Invest at your own risk.

How to store your Dogecoin investment in a secure wallet

When you invest in Dogecoin in the UK, safeguard your assets in a crypto wallet. Since Dogecoin is a digital currency, a safe, secure, and authenticated wallet must be used to avoid any potential threat. The Dogecoin wallets that are available can be accessed via a mobile app, software, etc.

eToro not only enables the purchase of Dogecoin online, it also stores your digital funds. The platform offers two options to traders. One, you can buy Dogecoin at eToro and store tokens on the platform. You can thus safely keep your funds and put the straight on the market when you wish to cash out.

Secondly, eToro also offers a cryptocurrency wallet that you can download via an Android/ iOS mobile app. The wallet supports more than 120 other cryptocurrencies, including Dogecoin. You can also acquire various investment services through the wallet and exchange digital currencies.

Some other top wallets include –

• Ledger Nano S (hardware wallet)
• KeepKey (hardware wallet)
• Jaxx (desktop and mobile wallet)
• Coinomi (mobile wallet)
• Dogecoin Wallet (desktop and mobile wallet)

Store Dogecoin

Your capital is at risk. Cryptoassets are highly volatile and past performance isn’t an indicator of future success. Invest at your own risk.

Dogecoin investment strategy

The following steps will help you in case you are looking for a good DOGE investing strategy:

Plan Your Dogecoin Investment Quantity

There is no standard amount as to how much you can invest in Dogecoin. Since the crypto market involves high volatility, you should always invest with great caution. As the supply of Dogecoin is unlimited, investors tend to buy more and more coins. The Dogecoin founders deliberately removed the limit so that people do not hold the coins for longer terms.

This is to encourage circulation. The best way to decide on the quantity of Dogecoin is to throughout analyze your financial standing, experience with investment, and the risk that you can bear. It is advised that you do not invest more than what you are ready to lose.

Go for the Right Exchange

Opening an account with the right exchange platform is the first step to investing in Dogecoin. Always go for platforms like eToro, which offer support for the Dogecoin cryptocurrency. and offer reasonable trading fees.

Go for a Safe Storage Option

With eToro, you can safely store your funds online. You can either store the tokens on the platform or go for the cryptocurrency wallet offered by eToro by downloading it via an Android/ iOS mobile app. It supports a wide array of cryptocurrencies, enables the exchange of digital currencies, and offers investment services.

Dogecoin price predictions

Dogecoin is highly volatile and investors have extensively speculated its price over time. However, any prediction in price cannot be assured. Many investors have instantly bought Dogecoin as per the reference made by Elon Musk.

One must note that it was priced at $0.004 in January 2021 and traded at $0.34 in May 2021 and rallied to an all-time high of $0.74 on 8 May post appearance of Elon Musk on the comedy show SNL and his tweet regarding the same. The Dogecoin price is now trading between $0.16-$0.25 per token. The current rate shows a decline of 43% (from $0.71). After a long and stagnant period of around 5 months, Dogecoin is showing signs of improvement in its price. It has been predicted that its price might rise up to $0.474 by the end of 2021.

Prediction for 2022

One of the biggest factors contributing to the soaring price of Dogecoin in 2021 is the popular platform eToro listing Dogecoin in its exchange. If the currency gets listed in other familiar exchanges in the coming year, its price can soar again.  It can strike at $2.382 by the end of 2022. However, the regular pressure caused by the bulls and bears in the market would keep the average price around $1.639.

Prediction beyond 2022

Throughout 2022, a bullish trend is expected with the price rallying to $0.31 mid-year and shooting to $0.33 towards the end of the year.

The year 2023, 2024 and 2025 could be very promising in terms of returns on investment. It is predicted to be traded at a high price of $0.52, $0.64, and $0.75 at the end of the years 2023, 20204, and 2025 respectively.

Beyond 2025 till 2030, the price is expected to pump and make a new all-time-high, rising to $1. After this the trend is expected to be bearish with the price going down given the fact that many investors will choose to churn out some profits and exit at this price.

Security and risks of Dogecoin investing

The cryptocurrency industry is highly volatile and has many risks involved. As a crypto enthusiast, it is important that you do your research thoroughly and participate in trading only when you are aware of the risks involved. What are some of the possible risks of Dogecoin investing?

eToro feed section for discovering other trader’s opinion

Issues while selling DOGE

If in a given situation, the price of Dogecoin shoots and you wish to sell your coins, the market might face outrage. Since the circulation is in huge amounts, when you attempt to sell the coins you have, you may not be able to sell it in the amount it is priced as it fluctuates every moment. Some people may not be able to sell their Dogecoin at all.

Threat from hackers

The fact that cryptocurrencies operate on Blockchain technology, hackers cannot easily hack them. However, there are still some potential threats from hackers. In 2013, a Dogecoin wallet hack led to a loss of about $12,000. Since then Dogecoin has seen a change in developers and an upgrade and many believe that its security would be strengthened with time.

The anonymous Dogecoin whale

The Wall Street Journal reported in February that 28% of all Dogecoin is owned by a single person. The speculation around it hasn’t yielded any results. Also, just about 100 wallets possess almost 70% of the total Dogecoin supply. If the speculation regarding the whale is true, then it can have a significant impact on the price of Dogecoin in the future.

Selling your Dogecoin investment

To sell your Dogecoin, all you have to do is go to your holdings on the brokerage platform or crypto exchange and enter the amount to process the selling. With eToro, you can store your Dogecoin and move it to market for sale whenever you want..

• If you have not transferred Dogecoin from one exchange wallet to another all you have to do is to set up a sell order. However, if you have moved your Dogecoin holding to another wallet, then first move it to the exchange from where you want to sell it.
• While selling your Dogecoin investment, you can either place a market order or a limit order. A market order allows you to sell the holdings at the prevailing market price. While a limit order allows you to sell it at a specific price.
• Market orders get executed in fractions of seconds, while limit orders will get executed only when the price touches the specified price. It is very important to note that while putting a specified price, it should be according to the price range that has a possibility of occurrence.

Since DOGE tends to move in brief bull cycles where the price pumps by a large percentage, then long periods of corrections until the next pump, you should sell at least part of your position every time it rises in price.

Even if you are investing in Dogecoin for the long-term this will allow you to compound your position on the next correction – derisking and selling some coins at high prices frees up capital to buy the dips.

It’s not usually a good investment strategy to be either ‘all in’ or ‘all out’ – protect your capital and buy low, sell high – scale into and out of positions with limit buy orders and limit sell orders.

Sell Dogecoin

Your capital is at risk. Cryptoassets are highly volatile and past performance isn’t an indicator of future success. Invest at your own risk.

Responsible investing

Responsible investing refers to indulging in extensive research about crypto and investing in the right manner to minimize your losses and maximize the scope for gains. Crypto investments are not easy to deal with and for long-term profits, you must also invest time and effort on understanding its dynamics thoroughly.

Most successful investors suggest reinvesting your profits once you gain from your initial investment. Forgetting your investment is a big no-no according to investors who have gained immensely from investing in cryptocurrencies. You need to have a track of where the market is going. For instance, investment in Bitcoin and Ethereum has given huge profits in less than three years.

These coins have now become the strongest in the crypto market. However, one must remember they had started with a meager price at some point. In this way, there could be others that could have immense potential.

We also suggest diversifying the portfolio and buying other fundamentally strong cryptocurrencies such as Ethereum and Cardano. Buying these would allow you to gain better long term returns and also offer other advantages such as Staking. You can read our article to read more about staking.

Cryptoassets are highly volatile and past performance isn’t an indicator of future success. Invest at your own risk.

Taxes and regulations regarding Dogecoin in the UK

Guidance on taxation of crypto assets has been given by HMRC (Her Majesty’s Revenue and Customs), the UK’s tax authority. Although HMRC does not consider crypto assets as currency/ money, nonetheless, one must note the following regarding crypto taxation-

• Crypto assets held for personal investment are subject to the Capital Gains Tax rules.
• If crypto assets are held for business activity, then the income is subject to income tax rules.
• HMRC identifies a business activity on a case-to-case basis.
• Cryptocurrency sold for fiat currency is subject to taxation.
• Cryptocurrency exchanged for another cryptocurrency is subject to taxation.
• Taxation applicable on using cryptocurrency for payment of goods/ services.
• Gifting/ paying cryptocurrency to another person will attract taxation.

Conclusion

Many have profited from investing in Dogecoin in 2021. The ROI was especially high for those that took some profits after each Elon Musk tweet and many are hopeful of the bull market continuing in 2022, and DOGE hitting a new all-time high of $1 – $2 one day.

Whether you want to invest in Dogecoin right now or wait for the opportune moment to arrive, always go for a consumer trusted exchange platform like eToro, with a 4.4/5 rating on Trustpilot. Since it’s a social trading platform you can network with other investors to discuss your thoughts on the Dogecoin price action, and pose the question is Dogecoin a good investment.

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