This is version 1 of a new Dogecoin buying guide I am putting together. Any feedback you have to make it better would be great. As I try out other sites I will add them to the list, once I know they are okay to use. I will likely do a big revision in about a week based on what people say and with additional sites I have tried out
Hello Shibes! With the increased interest in dogecoin, and there being so many changes to exchanges and ways you can buy dogecoin, I wanted to expand my purchasing guide for Canadians to include as many countries and as many options as possible. I have broken this guide down into the possible methods of purchasing dogecoin, and included and relevant sites in those sections. If you don’t find an option that is right for you, there simply might not be one yet. I will also cover some purchasing options that I wouldn’t necessarily recommend, but think are worth including for completeness. So without further ado shibes…
You Dogecoin needs to be stored somewhere, and this done in a wallet. There are two primary types, a paper wallet, which is the most secure, and a digital wallet. A digital wallet can either be on your computer, or it could also be a digital wallet on an exchange.
At the moment I will not go into much more detail as I will add more in a future update. For now, what you need to know is that if you plan on purchasing and simply holding onto your Dogecoin, a paper wallet is the most secure. You can learn how to make one here https://www.reddit.com/r/dogecoin/comments/7lntz1/tutorial_how_to_create_a_paper_wallet/ A digital wallet on your computer is good too, but you need to be very, very aware of scam wallets (Doughwallet, Freewallet, and the original Dogecoin Wallet aka Core Wallet are not recommended under any circumstance). Digital wallets on full service exchanges are okay, but you do run the small, albeit still possible, risk that the exchange will go bust and you will lose everything you are holding there.
Take the time to really understand how wallets work. It central to how any crypto is stored and used and you want to make sure you are keeping your funds as safe as possible.
Method 1: One stop shopping - Full service exchanges
If you want to get the best value for your money, then full service exchanges, those that allow purchasing and trading with a multitude of features to go with it, and allow funding/trading through fiat currencies (like USD or Euros), and crypto transfers, are the way to go. They will offer you the best rates, and are generally more secure and reliable than other sites I will get to later. The downside for many people is that they also require you go through some sort of verification process. There are varying degrees, from just submitting a photo of your ID, to third party verification and submitting other documents. I will cover these requirements as best as I can. Also, funding and withdrawal options vary greatly, depending on which country you reside in. If you are signing up to an exchange, with the hope of one day being able to withdraw your funds, take the time to see if that is even possible for you. Time to look at some of the most popular options.
www.Coinsquare.io (Full service option for Canadian residents only)
I am putting this one first because it is what I was use the most often (in part because I am Canadian and this is the best option for Canadians looking to buy and trade Dogecoin). It has a full range of funding including Interac, bank transfers, wire transfers, and depositing other cryptos of course. You cannot purchase with a credit card here. Canadians can also withdraw funds, which makes it the only site that offers Dogecoin that Canadians can do this on. The verification process can be done through a third party service (Equifax or a similar company), or through submitting ID and proof of address documents. It took me a few hours to get verified, but that was several months ago. It could take several days, or even a week, at this point. Your mileage will vary.
Their fees are reasonable, as are their rates, so when you buy Dogecoin, you will get a pretty fair price on it. You can also trade against fiat currencies which is a bonus if the trading aspect is important to you. If you do sign up you can, disclaimer, use this link here to get $20 when you buy $60 worth of crypto ttps://coinsquare.io/register?r=9C34FE9EF Overall this is a pretty good exchange, and it has yet to close registrations despite the huge crush of new people these sites have been seeing in the past few months.
www.Poloniex.com (Full service in the US, can transfer in crypto for other countries, potentially closed registration in Canada)
This is a popular site if the number of times it is mentioned on reddit are any indication. I have tried to register on it a few times, and had no luck due to what appears to be a broken registration process (when I get to the stage where it asks to submit and ID, it can’t detect a web. When Ive gone back to the site in a different browser, its said the verification process is pending). So you can try it yourself and see if you have any luck, but for me (and perhaps it has to do with being in Canada), new registrations don’t seem to be possible.
www.Coinpot.com.au (Australia only)
This is an Australian based site, which up until just before Christmas was a full service exchange, though they are slowly restoring many of their suspended services. They have currently disabled funding via POLi Payments, though you can fund your account via BPAY and Cash deposits. You can also deposit Bitcoin. At this time no other cryptos can be deposited, though any crypto you purchase on the exchange can be withdrawn to a wallet. The verification process is rigorous, you need ID, proof of residency, and to take a photo with yourself holding a sign (this is becoming a more common requirement). I cannot attest to how well the site works, and the rates, since I am not Australian and cannot test it out, but from what I can gather from others comments about it, it seems to be a decent site.
www.litebit.eu (EU only)
This is currently the best option, so far as I can tell, for EU citizens to purchase Dogecoin. You have to sign up, which requires government photo ID and proof of residency, and once approved you can make your purchase. They accept iDeal, SOFORT, GiroPay, SEPA as forms of payment, but do not take credit cards. You can either purchase directly, or, you can purchase LiteBit credits and then purchase Dogecoin using those. If you use LiteBit credits then your purchases are processed instantaneously.
I was unable to determine what the fee to purchase Dogecoin, or any other crypto for that matter, is. If you sell there is a 5% fee, so keep that in mind. You can also do withdrawals on this site. I can’t speak to the user experience, since as non-EU citizen I cannot sign up, but from what I’ve read it seems to be okay. The site does say they are experiencing high demand. So even though they are accepting new customers it could still see support and slowdowns being an issue.
www.anycoindirect.eu (EU only and currently not accepting new registrations)
When this site opens up for new registrations I will add more about it. For the moment I will just say that it is similar to Litebit, accepts the same forms of payment, but has 10% fees on any selling you do. Their live chat is also down so this seems to be struggling under the high demand right now.
www.Kraken.com (Full service in US only, currently closed to new registrations)
I am not sure if there is a restriction for all countries, or if it is just for Canada, but currently you can sign up, but there is no option to get verified, thus no way you can deposit money into your account and purchase dogecoin. I am going to check back every now and then and see if this changes and will update this listing if purchasing dogecoin for new users becomes possible.
www.Bittrex.com (Full service in US only and currently closed to new registrations)
This site has closed down new registrations for just over a month now. Even if they open them back up again in the future, the length of time they have already taken to correct any of the problems that lead to this makes me a bit nervous about its future health as an exchange. I don’t think I would recommend this site, even if it does open up to new users again.
Method 2: Two step purchasing aka The Coinbase option (For US, Canada and other non EU countries)
Lets say you don’t want to purchase Dogecoin through one of the full service exchanges, perhaps because you want to use a credit card, or because the other sites have verification processes that are just to much for you. There is another method which, although not the most cost effective way, will allow you to buy dogecoin by using Coinbase and one of the other exchange sites listed below.
The process is relatively straightforward. First, sign up for Coinbase. It does require verification, but it is only your address information and a government photo ID. It might take a few days with all the new registrations, but when I did it a few months ago it was just a few hours, so it might not take that long. Once you are set up you add the credit card of your choice (Note: Capital One Credit will no longer work as they have put a block on purchasing crypto from sites like Coinbase). The key thing to remember in this next step is to NOT buy Bitcoin. The transaction fees are growing each day it seems and you will lose a lot when you transfer it out. Your best options are Ethereum or Litecoin, which have low transaction fees. I do not know how much Bitcoin Cash transaction fees are, but, if you decide to use Coinex.com to buy Dogecoin you will need to purchase Bitcoin Cash instead of one of the other two. Always check to make sure that whatever exchange site you are going to use in the second step has the right deposit/exchange option for you.
Now that you have purchased Ethereum, or Litecoin, or Bitcoin Cash, you can visit one of the other sites listed below and use them to purchase your Dogecoin. It is worth noting that some sites, like Coinex.com, require you register (though there is no real verification process), while others do not require an account. Once you have purchased your Dogecoin you may be required to move it into your wallet as a final step (see the top of this post for more about wallets), or in some cases you will have already provided your wallet so nothing else needs to be done. While Coinbase is a fairly reliable site, some of the smaller sites can be hit or miss. Before using a site for the first time it is worth taking a looking at /r/dogecoin to see if there have been any users reporting issues that could steer you away from using it.
www.Coinbase.com (Full service in US, purchase only in Canada)
Even though you can’t actually buy Dogecoin on this site it is massively popular site for quite a few reasons. First, it accepts purchase via credit cards, which makes it easy for people to sign up and purchase their available cryptos. You can choose between Bitcoin, Bitcoin cash, Ethereum and Litecoin. So for people that don’t want to fund a crypto purchase through a bank or Interac or wire transfer, you can purchase it on Coinbase, then move it elsewhere. In the US this is a full service site with trading and withdrawals available. In Canada, and most other countries I presume, all you can do is purchase. This means that using Coinbase still requires a second exchange that you will actually purchase Dogecoin on.
A few other things worth noting. There is a verification process, but it was not too intensive, just the usual address information and a government photo ID. The prices for their crypto are generally decent, but if you pay by credit card there is a 4% fee, so you have to keep that in mind. If you have a cash back credit card you might be able to claw back some of that, but if you are doing a lot of large purchases it will still add up over time. There are also limits on how much you can purchase (the exact amount depends on your account and buying history). For times where you just want to quickly purchase a crypto (remember to use Ethereum or Litecoin to avoid Bitcoins high transaction fees) to move elsewhere to get Dogecoin, this is fine. But this is not a good long term as the fees will add and be costly over time.
This is a relatively new site. It is actually a trading site, but, it only has trades/purchasing against Bitcoin Cash (no fiat currencies). So in order to fund your account on this site, you will have to transfer Bitcoin Cash into it. Because it is new, and they only added Dogecoin a few days from the time I wrote this, it is hard to tell if their rates will be competitive with other larger, and full scale exchanges. This is probably not a bad option to purchase Dogecoin, but being a new exchange, I wouldn’t leave your crypto in it for too long.
This is fairly simple and straightforward site. You enter the address of the wallet you are looking to use to fund the exchange, and how much you want to trade, enter your Dogecoin wallet address, and make the exchange. As with all the sites like this, the rate you pay is a bit higher than a standard full service exchange site. But Evercoin seems to fairly reliable and doesn’t overcharge as much as some other sites, so this is not a bad option for the two-step method.
www.Shapeshift.io (Has currently run out of dogecoin for purchase)
This was a very popular site to quickly change Bitcoin (or another crypto), into Dogecoin. The rates were not great, compared to full exchanges, but it worked. That was until it ran out of Dogecoin. So at the time of writing this, you won’t be able to use this site to purchase Dogecoin. Even if it does offer Dogecoin again, it was not uncommon to see people commenting about very long (as in several day long) transaction times, and limited to non-existent customer support help. I would say use this site with caution if it does become an option again.
Method 3: (And not a great method, use with caution) Buying from /r/dogemarket
The reddit.com/r/dogemarket subreddit is a place where people buy and sell Dogecoin directly from, and to, each other. Often payment is via PayPal, but it could be gift card trades, or some other payment method.
There are lots of people who have used this successfully. And others have been scammed too. And as cryptos become more popular, the likely hood that scammers will increase is very real. I don’t doubt there are many reputable people selling. But with how easy it is to make multiple users and have fake testimonials it’s really a gamble as to whether the person is trustworthy or not. For the most part, I would not recommend this method, and if you use it, be aware there are risks.
Method 4: Ebay…which I do not recommend at all, under no circumstance
Yes, people sell dogecoin on Ebay. But, simply put, you should not use this method. This is the quickest way to get scammed and end up out money, and often they are already charging 2, 3 or 4 times the market rate. Yes, there are posts on how to avoid getting scammed if you do purchase from Ebay. But, if you have to go through that much effort to ensure your transaction is safe, its not worth it. Just avoid this method altogether.
TL;DR aka the most important tips to remember
- If you are using another crypto to buy dogecoin, DON’T use Bitcoin. The transaction fees mean it will cost you a lot more and if your just buying small amounts, the transaction fee could eat up your whole amount. Use Litecoin, Ethereum. Even Bitcoin Cash is a better choice than Bitcoin.
- The more you have to change currencies to buy dogecoin, the more its going to cost you. Buying with cash directly, in one transaction, is going to be the best value for money.
- If it seems to good to be true, it probably is. The crypto world is a scammers best friend. Always exercise caution.
- Never spend more than you can afford to lose. Dogecoin is no different than other cryptos, it is volatile. Though unlikely, its value could go down to nothing. If that happens, don’t leave yourself in a spot where that will negatively impact you.
- Keeping your money on exchange could be risky. Exchanges do shut down, and if your money is there, you could very well lose it all. Use digital wallets to keep your funds safe is your intention is to hold on to it, and not trade it.