Sell DOGE: A beginner’s guide on how to sell Dogecoin for cash and crypto

Sell DOGE: A beginner’s guide on how to sell Dogecoin for cash and crypto

How easy is it to buy and sell DOGE coins?

Many crypto enthusiasts regard Dogecoin (DOGE) as a joke, but it is a cryptocurrency built using code from Bitcoin (BTC), Litecoin (LTC), and the Bitcoin fork Lucky Coin (LKY). DOGE was created to mock the Bitcoin hype, but it quickly gained popularity after an image of a Shiba Inu was plastered on a crypto coin. 

Since the inception of Dogecoin, many investors have been curious about how to sell Dogecoin for cash and the answer to the question, “How easy is it to buy and sell DOGE?” Fortunately, we have the answers to all of these questions and more. Welcome to the beginner’s guide to selling DOGE for cash and cryptocurrency.

What is Dogecoin?

Dogecoin is a meme coin that was created in 2013 by two software engineers, Billy Markus and Jackson Palmer. Palmer tweeted about creating a doge-themed cryptocurrency based on the “doge” Shiba Inu meme. 

Markus saw Palmer’s tweet and began developing Dogecoin on his own initiative. Because Dogecoin is a fork of Lucky Coin, which is a fork of Bitcoin, it is correct to say that Dogecoin is based on Bitcoin’s code. 

The initial codebase of Bitcoin made it simple for Markus to modify critical elements and launch Dogecoin. Markus developed and released Dogecoin in just three hours. Palmer joined the project soon after. 

Dogecoin gained popularity quickly due to its meme-like quality and low price. Reddit even added a DOGE tipping feature to reward users, and Tesla founder Elon Musk frequently praised Dogecoin. DOGE is also widely used by investors to pay for goods and services online. 

Dogecoin is a proof-of-work (PoW) cryptocurrency that requires miners to validate transactions because it is based on Bitcoin. Miners on the Dogecoin network are referred to as “diggers,” further mocking the prospect of mining cryptocurrency.

How to sell Dogecoin for cash and crypto

To sell Dogecoin, one must first obtain it. To invest in Dogecoin, the user must first register with a cryptocurrency exchange that supports the Shiba-like asset. Exchanges that support DOGE include Binance and Coinbase. 

Once a user has signed up for an exchange, he or she must enter a payment method or transfer existing cryptocurrency to the exchange wallet. Investing in Dogecoin is as simple as locating the asset and purchasing it with fiat or converting existing crypto to DOGE. However, depending on the exchange, there are a few ways to buy DOGE. 

When buying or selling cryptocurrencies, traders have many options, whether they want to target a specific selling or purchasing price or set the transaction’s timing. Limit and market orders are two types of market orders used by traders to buy and sell digital currencies.

Limit order

Limit orders allow investors to purchase DOGE at a predetermined price. Assume one wishes to purchase DOGE at $0.20, but it is currently priced at $0.23. The investor would place a limit buy order, specifying the amount of DOGE they wanted to purchase at $0.20. This order will not be filled until DOGE falls below $0.20. If the price of a cryptocurrency never reaches the level specified in a limit order, it will never be fulfilled.

DOGE can be sold for cash or cryptocurrency

Investors can use market orders to purchase DOGE at the current market price. A market order is usually filled immediately, if not seconds after it is placed. Market orders are less risky than limit orders because limit orders are not subject to volatility due to their near-instant nature.

DOGE holders can sell the cryptocurrency whenever they want, and they can do so on any cryptocurrency exchange that supports Dogecoin.

Setting up a sell order is simple if a user has never moved their Dogecoin from the exchange wallet. If the DOGE was transferred to another wallet, it must be sent to the exchange of choice’s wallet. 

When Dogecoin is in an exchange wallet, the investor can sell it immediately via a market order or at a later date via a limit order. Aside from market and limit orders, there is also a stop-loss order method for selling.

A stop-loss order protects a trader’s funds in the event of an asset price crash. When selling DOGE, a stop-loss of 15% of one’s current DOGE portfolio may be set. If DOGE crashes overnight and falls 25%, the stop-loss order would have sold the portfolio when it fell 15%.

In either case, the trader loses money. A stop-loss, on the other hand, prevents the trader from losing more than they could have by selling assets before the price falls too low.

The future of Dogecoin: Is DOGE a good investment?

DOGE is faster and cheaper to transact with than its competitors, such as Bitcoin, making Dogecoin a better investment asset. However, there are a number of important factors to consider before deciding whether DOGE is a good investment. 

DOGE is considered an inflationary asset by some traders. Dogecoin is inflationary because there is an infinite supply of it, removing any sense of scarcity. DOGE’s scarcity may cause Dogecoin to become less valuable as the network produces more tokens. 

With each validated block, the Dogecoin network distributes 10,000 DOGE into circulation. Overall, releasing 10,000 DOGE per block results in approximately 5 billion DOGE being issued per year. 

It’s important to remember that Palmer and Markus created DOGE as a joke, which accounts for the token’s inflationary nature. Palmer and Markus’ intentions may lead one to believe that DOGE is not a good long-term investment. However, because blockchain networks are open source, the community is the true deciding factor.

Indeed, the DOGE community is working hard over the next year to improve scalability and security. It’s anyone’s guess whether these upgrades contribute to a solid long-term token. 

Finally, whether or not DOGE is a good investment is entirely dependent on investor sentiment. DOGE may be used for simple transactions or to pay for goods and services by some. Others may be looking for a long-term DOGE investment in order to sell DOGE later, and they should do their homework before making such a decision.

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