How to Buy Dogecoin on eToro: A Comprehensive Tutorial

Introduction

Dogecoin is one of the earliest coins that has remained among the top cryptocurrencies by market cap. Billy Markus and Jackson Palmer established Dogecoin in 2013 as a “meme’ or “joke” cryptocurrency. However, people, including high-profile individuals like Elon Musk, took the “joke” coin seriously. Online brokerages like eToro make it easy and quick to buy, hold, and sell DOGE. Let’s look at how to buy Dogecoin on eToro hassle-free below.

Highlights and Key Takeaways

• Since its establishment in Dec 2013, Dogecoin (or DOGE) remains among the top cryptocurrencies by market valuation.

• eToro is one of the best online brokerages offering seamless crypto transactions and the ability to trade other financial assets like stocks, ETFs, and currencies.

• You can use a demo account on eToro to practice trading Dogecoin with virtual cash before investing your hard-earned capital.

• eToro’s fees for purchasing and selling Dogecoin and other crypto assets are transparent and relatively low.

Understanding eToro’s Platform

As we seek to understand eToro’s platform, we enter into this leading social trading network’s features, functionalities, and benefits. We will explore the platform’s unique blend of traditional investing and cutting-edge technology, which enables easy access to global markets and a thriving social community of traders. Whether you’re a novice or a seasoned investor, this deep plunge into eToro’s platform aims to enhance your trading experience.

Brief Overview Of eToro

With over 30 million users and about 2.9 million active accounts, there’s no denying that eToro is one of the best online trading platforms. Established in 2007, it pioneered social or copy trading. This feature allows you to copy the positions of successful traders automatically. 

Think of copy trading as opening every trade position Warren Buffett opens (but you won’t find him here, unfortunately) and reaping the benefits of his investing experience and advanced trading strategies. So, social trading can be a game changer for you if you’re a beginner investor learning how to trade crypto and other financial assets. We’ll explore how it works on eToro in detail later. 

Besides crypto, eToro allows you to invest in other financial instruments, including: 

• Stocks.

• Currencies.

• EFTs.

• Indices.

• Commodities.

Benefits Of Buying Dogecoin On eToro

Consider the following benefits of buying Dogecoin on eToro to decide if it’s the right platform for you.

• Ease of Use: eToro is well-known for its user-friendly interface, making it accessible to beginners and experienced investors. 

• Social Trading Features: This is the primary feature that draws most traders to eToro. The eToro CopyTrader system allows you to automatically copy the trades of a particular investor, increasing the chances of profitability and giving you learning opportunities. 

• Regulation and Robust Security Measures: Different bodies like the FCA, ASIC, and FINRA regulate eToro. Regulatory oversight makes a platform more legitimate as it must adhere to the set standards and rules for licensure. 

• Strong Community: eToro has a vibrant community that shares ideas, strategies, and updates. You can easily connect with other Dogecoin enthusiasts to learn from each other and gain insights. 

• User-Friendly Mobile App: Besides trading on the web, eToro offers an intuitive app allowing you to trade and track your portfolio.

• Multiple-Asset Classes: To diversify your portfolio beyond Dogecoin, you don’t need to find another online trading platform. eToro is a multi-asset platform including stocks, ETFs, and other cryptocurrencies you can purchase without changing accounts.  

• Educational Resources: While being a successful trader is helpful, it’s crucial to understand how investing works in the long term. eToro Academy provides educational resources to help you understand the financial markets and investment strategies.

Step-by-Step Guide To Buying Dogecoin On eToro

Welcome to our step-by-step guide to buying Dogecoin on eToro. Given the rise in popularity of cryptocurrencies like Dogecoin, we seek to simplify the process for you. Through each step, from creating your eToro account to making your first Dogecoin purchase, the guide aims to equip you with the practical knowledge you need. There is no jargon, just a straightforward walkthrough to help you go through the potentially lucrative world of cryptocurrencies with confidence.

Setting Up an Account

Are you ready to buy Dogecoin on eToro? If so, the first step is to create your account. Pretty straightforward. 

And if you still need to get ready to invest your money, no worries! You can open an eToro demo account to practice your trading strategies, see how the platform works, and try out the copy trading feature. Even if you’re an experienced trader, demo accounts help you understand a new platform. 

The demo account on eToro comes with $100k in virtual cash. That’s sufficient to help you test the platform without risking your hard-earned money. Follow the steps below to create a free account, access the virtual portfolio, and master how to buy Dogecoin on eToro.

• Visit the official eToro website and click the “Join eToro” or “Join Now” button on the homepage.

• Fill in the required personal details in the pop-up form (username, email address, and password).

• Read eToro’s Terms & Conditions and privacy policy and check the agreement box if you’re comfortable with them.

• Hit the “Create Account” button to submit your information.

• Enter the verification code sent to your email address in the pop-up window to complete the signup process. 

Once you’ve verified your email, you can access eToro’s dashboard. Here, you can switch between the Real Portfolio and the demo account, depending on which one you want to use.

But to use the Real account, which allows you to invest in the live markets using your money, you need to go further. All new investors must undergo the Know Your Customer (KYC) process as part of the regulatory requirements. The KYC process requires you to submit the following:

• A Confirmation of Residence Document dated the last three months, for instance, a phone bill, bank statement, or any other utility bill.

• A Proof of Identity Document such as a valid passport, driving license, or government-issued ID.

The KYC process verifies your identity. A questionnaire follows next; this determines your eligibility to open a trading account. The questions revolve around your knowledge of the capital markets, investment goals, risk tolerance, source of funds and investing experience.

Depositing Funds

After creating your account and testing the platform using the demo account (if needed), you can deposit funds to start investing. eToro offers hassle-free and secure ways to deposit funds using various payment methods, including e-wallets like PayPal, Neteller, and Skrill, credit or debit cards, and bank transfers. Here’s how to deposit money into your eToro account step by step:

• Sign in to your account on the eToro website or mobile app.

• Click on the “Deposit Funds” button on the left side panel of the dashboard.

• Enter the amount you want to deposit and choose the currency (EUR, USD, GBP, or AUD). Next, select your preferred payment option.

• Hit the “Deposit” button. 

Most transactions are processed within minutes, but the waiting time can vary depending on the payment method provider. 

Purchasing Dogecoin

With funds in your eToro account, you can purchase your favorite crypto. Here’s how to buy Dogecoin on eToro for the first time.

On your eToro account, locate the search bar on top. Type “DOGE” or “Dogecoin” and click on it from the search results. This will open the coin’s details page, which includes DOGE’s current price, chart, market analysis, news, and statistics. You can use all this information to make informed trading decisions.

If you’re satisfied with the current market price and the other details, click the “Trade” button on the top right-hand corner. This will open the order confirmation window, where you’ll enter the amount of Dogecoin you want to buy. You’ll also have the option to choose the order type:

• Market Order: Executes your trade immediately at the best possible market price.

• Limit Order: This allows you to set the maximum price you want to purchase Dogecoin. The order will only be executed if the market price reaches your specified limit or lower. 

All your transaction information will be displayed, including total cost and fees. Review the details and click “Open Trade” to execute the buy order. You can then view your Dogecoin holdings and track your investments via the portfolio section of your account. 

Navigating Through eToro’s Unique Features

Exploring Social Trading

eToro’s award-winning CopyTrader system is what sets the platform apart in the world of online trading. To start using the copy trading feature, click the “Discover” button on the left side panel of your account. Then, select CopyTrader in the top menu bar. Now browse profiles of different investors and note the ones with an investment plan that aligns with your goals. 

Scroll down to see your options. The platform helps you find the right match using filtering criteria. To use this feature, locate the “Find your Match” section and enter the following details to filter available options.

• Return (high, low, or medium)

• Duration of copy relationship (min 0-1 years)

• Asset types the investor profile should include

You can then click the green forward icon to see all the investors who match your requirements. Besides the filtering criteria, you can still scroll down to see other categories of investors, including:

• Trending investors.

• Market outperformers.

• Global macro.

• Energy investors.

• Most copied investors in the last year.

Click on an investor’s profile to view more details. You’ll see their performance overview, stats, portfolio, and chart. If you’re sold out on an investor, click the “Copy” button in the top right corner. You’ll be prompted to enter the amount you want to allocate for copying the trader. Your options include copying the trader’s existing portfolio or new positions. There’s also an option to set “take profits” and “stop loss” orders.

Once you do that, every action the copied investor takes will be mirrored in your account, including closing a position. This is possible even with the demo accounts. You can also complete an open trade without ending the copy relationship. Or, you can stop copying a trader at any time. Notably, US traders can only copy Popular Investors from the US.

How To Sell Dogecoin On eToro

When you’re ready to sell your Dogecoin, eToro makes the process pain-free. Below are the steps you’ll need to take: 

• Log in to your eToro account.

• Click the “Portfolio” section on the left side menu.

• Select Dogecoin from the list of assets in your portfolio.

• Click the red cross sign on the right side to close the open trade. Alternatively, you can click on the ‘close’ button shown in red. 

• The ‘close trade’ window displays, click on “close trade” to complete the trade.

Closing the trade means you’re selling your Dogecoin holdings. Based on the market price, it will be converted to USD and deposited in your eToro account.

How Much Does It Cost To Buy Dogecoin On eToro?

Buying and selling Dogecoin or other cryptocurrencies on eToro isn’t free. But the fee structure is transparent, with no hidden charges. Below are the fees eToro charges for buying Dogecoin and other cryptocurrencies. 

• Flat Commission. eToro charges a 1% fee for both buy and sell orders. So, when you open a buy position for Dogecoin, eToro will charge 1% of the trade size for opening and 1% for the expected closing cost. When you close the trade, the selling fee is adjusted based on the market price.

• Dogecoin Transfer Fees: eToro charges crypto transfer fees when you transfer Dogecoin from the investment platform to the eToro Money crypto wallet. The transfer fee is 2% of the transaction size, with a minimum fee of $1 and a maximum of $100.

• Blockchain Fees: These fees are external and vary, so they are outside of eToro’s control. 

• Spread or Trading Fees: Spread is the difference between the bid (buy) price and the ask (sell) price. These fees vary for each trade, but eToro generally offers low spreads.

• Deposit Fees: eToro doesn’t charge deposit fees but the payment processing platform or bank may charge a fee. 

• Withdrawal Fees: There’s a flat $5 withdrawal fee with a minimum withdrawal of $30. You might also incur a conversion fee if your withdrawal currency is not USD.

How do eToro crypto fees compare to other crypto platforms like Coinbase and Binance? Comparing fees between various platforms directly is more complicated, as they have different fee structures.

Coinbase charges a 1% bank transfer fee, $10 for wire deposits, $25 for withdrawals, and 0-1% commission. On the other hand, Binance has low spreads of about 0.1% and 20-30% staking fees.

Conclusion

Trading crypto is now easier than ever. And if you’ve chosen Dogecoin, you’re on the right track, as it’s among the top cryptocurrencies by market cap. 

Another critical decision you must make when buying Dogecoin or any other coin is choosing a reputable broker. Remember, your money and sensitive information are at risk. So, only trade with a trusted broker with a long history in the market, like eToro.

FAQ

Can I Buy And Sell Dogecoin On eToro?

Yes, you can buy and sell Dogecoin on eToro.

Can I Buy Dogecoin On eToro Without Verification?

No, you can’t buy Dogecoin on eToro without verification. As a regulated broker, eToro must subject every new trader to the KYC process.

Does eToro Charge Fees for Buying Dogecoin?

Yes, eToro charges various fees for buying Dogecoin, including a flat 1% buying and selling commission and varying spreads.

Do You Own Crypto On eToro?

Yes, you own the crypto you buy on eToro, and you can transfer it to another cryptocurrency wallet.

Is My Money Safe in eToro?

Yes, your money is safe in eToro. The company behind the trading platform is regulated and has a good safety track record since its establishment in 2007.