How to buy Dogecoin UK? A beginner's guide

In light of Dogecoin's recent decline of over 90% from its all-time high, numerous purchasers are keen to invest before the market rebounds. This user-friendly manual caters to UK buyers seeking guidance on purchasing Dogecoin. It offers a straightforward, step-by-step approach and identifies the prime platforms for acquiring DOGE, prioritizing factors such as cost-effectiveness, security, and standout features.

How to buy Dogecoin in the UK ?

Below is a concise outline of the steps required to purchase Dogecoin in the UK. For more detailed instructions, refer to the subsequent sections.

Step 1: Register with MEXC: Connect to MEXC exchange using a crypto wallet or your email address.
Step 2: Account Verification: Upload a copy of your passport or driver's license to verify your MEXC account.
Step 3: Deposit Funds: Deposit a minimum of £5 using various payment methods available on MEXC.
Step 4: Purchase Dogecoin: Invest in Dogecoin starting from $10 on the MEXC platform. Specify the desired amount and confirm the trade by clicking 'Open Trade.'

Where to purchase Dogecoin in the UK – Comprehensive exchange reviews

Dogecoin has significantly impacted the crypto sphere since its inception, emerging as the largest meme coin by market capitalization currently. As its popularity surges, many UK investors are seeking reliable exchanges to buy Dogecoin. We've meticulously evaluated and identified some of the top platforms, prioritizing transparency and security:

1. MEXC – Top-rated crypto exchange in 2024

Our foremost recommendation for a cryptocurrency exchange is MEXC, trusted by over 10 million users spanning 170+ countries. MEXC boasts competitive trading fees, diverse payment methods, staking options, and distinctive features.

The registration process is quick, taking only a few minutes, enabling traders to promptly engage in buying and selling Dogecoin and over 1,000 other cryptocurrencies with just a £5 minimum investment.

Setting itself apart from competitors, MEXC imposes no spot trading fees, while its futures trading taker fee commences at a mere 0.02% per transaction, with 0% for limit orders.

To bolster security, MEXC employs an anti-DDoS system and safeguards over $500 million worth of user funds in cold storage, shielding them from potential breaches. Advanced traders can explore margin and futures trading, leveraging their assets for maximum gains.

For novice traders seeking guidance, MEXC provides a copy trading tool, enabling them to replicate the trades of seasoned professionals. Additionally, the platform offers a wealth of educational resources and articles to enhance trading proficiency.

Individuals seeking to earn passive income have the option to stake their DOGE on MEXC Savings, potentially yielding up to 1% in APRs. With the flexible staking feature, investors have the freedom to lock and unlock their holdings at their discretion. Payments on MEXC can be facilitated via SEPA transfers, credit/debit cards, and bank transfers.

Furthermore, MEXC provides round-the-clock customer support to address the diverse needs of its users.

2. Binance is the leading global cryptocurrency exchange, boasting over 160 million registered users worldwide

With trading fees as low as 0.1% per transaction, Binance facilitates trading for over 400 cryptocurrencies, including Dogecoin. Additionally, it provides a Binance Academy, offering educational resources for newcomers to learn about cryptocurrencies and NFTs.

Binance offers traders the opportunity to experiment with their strategies using a demo account, which comes pre-loaded with 10 BTC. This provides a risk-free environment for practicing new tactics. Moreover, Dogecoin can be staked on Binance through a flexible staking option, enabling users to earn up to 0.18% annually.

The platform presents distinctive features like a swap farming mechanism, granting access to numerous crypto pairs via liquidity pools. Experienced traders can utilize leverage on their trades and engage in futures contracts.

Multiple payment methods are supported on Binance, including VISA, Mastercard, credit/debit cards, and ACH transfers. Transactions made with credit cards are subject to a 4.5% fee per transaction. Alternatively, other payment methods like ACH transfers do not entail additional fees.

3. Coinbase – Premier exchange ensuring strong security measures and swift transactions, offering a selection of over 250 assets

Coinbase stands out as a top-tier cryptocurrency exchange in the UK, serving a vast user base of more than 100 million customers. The process of acquiring Dogecoin through Coinbase is straightforward.

It commences with setting up an account, which entails providing personal details and undergoing identity verification, such as presenting a passport or driver’s license. Following verification, you can promptly acquire Dogecoin using a Visa or MasterCard, with transactions processed instantly.

However, it's crucial to note the associated expenses. Coinbase imposes a 3.99% fee for purchasing Dogecoin with a debit card, rendering it a comparatively pricier option.

Alternatively, individuals have the option to transfer funds from a UK bank account, which eliminates deposit fees but incurs a 1.49% trading commission. These fees differ from those of platforms like MEXC, which may offer more cost-effective options.

In addition to Dogecoin, Coinbase enables investment in over 250 other cryptocurrencies, including Ethereum, Litecoin, Bitcoin, and more. With a minimal investment threshold of just £1, Coinbase is appealing to beginners.

While Coinbase provides a user-friendly platform for purchasing Dogecoin in the UK, its higher fees may prompt some to explore alternative options. Nevertheless, its strong reputation, security features, and extensive asset offerings position it as a viable choice for both novice and seasoned traders.

4. Kraken – Leading cryptocurrency exchange with a clean security record

The following exchange on our list is Kraken, established in 2013. In addition to Dogecoin, traders have access to over 220 cryptocurrencies on this platform. Kraken distinguishes itself by being one of the major exchanges that has never encountered a significant security breach.

The platform safeguards users' funds by storing 95% of all assets in cold storage. All sensitive data on Kraken is encrypted, and SSL encryption is utilized while investors navigate the exchange. Employing two-factor authentication (2FA) and email verification protocols, Kraken enhances security measures for accounts.

Investors have the option to instantly purchase cryptocurrencies, incurring a 1.5% fee per transaction, and a 0.9% fee when acquiring stablecoins. Regular cryptocurrency purchases are subject to a reduced fee, starting at just 0.16% per transaction.

Margin trading fees commence at 0.02% for every 4 hours that a position remains open. Experienced traders can utilize up to 5x leverage on trades and utilize active charts and open orders via the Kraken Pro account.

What is Dogecoin?

Dogecoin, introduced in December 2013, is a decentralized, peer-to-peer cryptocurrency designed as a playful alternative to mainstream options like Bitcoin. Its distinctive identity stems from its name and Shiba Inu logo, inspired by a widely circulated internet meme.

The concept of Dogecoin emerged from the attention garnered by a social media trend, catching the interest of software developers Billy Marcus and Jackson Palmer. Initially conceived as a humorous project, the enthusiastic response prompted them to bring Dogecoin into existence. Its underlying code was built upon Luckycoin, which itself was a derivative of Litecoin.

During its early years, Dogecoin was primarily associated with internet culture and humor rather than being viewed as a serious investment. However, it gained notable attention during the cryptocurrency frenzy of 2017 and early 2018, experiencing a significant surge in value. Although its value declined after the market correction, Dogecoin maintained a dedicated community of supporters

Dogecoin's blockchain protocol is derived from Litecoin but with specific modifications. While Litecoin takes 2.5 minutes to generate a block, Dogecoin achieves this in just one minute. By utilizing the Scrypt hash function instead of Bitcoin's SHA256, Dogecoin rendered certain hardware, particularly tailored for blockchain, inefficient.

The platform's rapid block generation, coupled with its acceptance by various services like the American Gold Exchange, offers practical utility. Additionally, Dogecoin is utilized for donations to Twitch streamers and for purchasing merchandise from entities such as the Dallas Mavericks.

Unlike Bitcoin, Dogecoin lacks a cap on the total number of DOGE in circulation, resulting in a continually expanding supply. Approximately 10,000 new coins are mined every minute, contributing to this abundance.

The value of Dogecoin hinges on a complex interplay of supply and demand dynamics. Its perpetual supply growth necessitated a corresponding surge in demand to drive its value. In 2021, its price surged by around 7,000%, influenced by the broader cryptocurrency boom and media attention.

Should Dogecoin be considered as a viable investment?

This question encompasses various factors such as individual financial objectives, risk tolerance, and a careful examination of the aspects outlined below. It necessitates a nuanced viewpoint that balances potential gains against inherent risks.

Community and development support

• Community engagement: A key driver of Dogecoin's success is its robust community backing, from tipping content creators to funding charitable endeavors.
• Developer activity: Although development activity has been relatively subdued, recent engagements suggest an increasing interest in enhancing the network's functionality and security. However, comparing this activity with that of other major cryptocurrencies can provide insight into Dogecoin's competitiveness.
• Partnerships and integrations: Dogecoin's integration into payment systems, collaborations with businesses, and ongoing integration with DeFi platforms could have a lasting impact on its value and utility. Monitoring these developments can aid investors in making informed decisions.

Liquidity & accessibility

• High liquidity asset: Dogecoin's multi-billion dollar market capitalization ensures ample liquidity, facilitating ease of buying and selling.
• Widespread availability: Leading brokers and cryptocurrency exchanges offer Dogecoin, enhancing its accessibility for investors.
• Affordability: Unlike Bitcoin or Ethereum, which may cost thousands of dollars per coin, Dogecoin is priced below $1, making it affordable for investors to acquire whole tokens without significant investment. This affordability may appeal to small investors who prefer owning entire tokens over fractional portions of expensive assets.

Potential for global payments

• Fast and low-cost transactions: Dogecoin's one-minute confirmation time and minimal transaction fees make it an appealing choice for domestic and international fund transfers.
• Comparison with other cryptocurrencies: While Dogecoin surpasses Bitcoin in terms of speed and cost, other networks such as XRP, Solana, and Cardano offer even greater efficiency, potentially impacting Dogecoin's competitiveness in the long term.

Other considerations

• Discounted price: Dogecoin has experienced a notable market correction since its peak in 2021, presenting an opportunity to purchase at a reduced rate. Currently, DOGE is trading at a 91% discount from its all-time high price of $0.73.
• Volatility risk: However, the same price fluctuations that create buying opportunities also indicate a level of volatility that may not be suitable for all investors.
• Celebrity endorsement: Elon Musk's endorsement of Dogecoin has significantly influenced its value, with a single tweet from him capable of moving the market. However, reliance on Musk's endorsement could render the price vulnerable to sudden shifts based on his statements or actions.
• Suitability as a global payment network: While Dogecoin's performance surpasses that of Bitcoin, it does not necessarily make it the default choice for a global payments network.

Is it possible to purchase Dogecoin using PayPal in the UK?

Prospective investors in the UK have various avenues to explore when seeking to invest in digital currencies, including utilizing PayPal. However, options are limited for purchasing Dogecoin specifically through PayPal in the UK.

PayPal does permit the purchase of select cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. The platform's convenience, with a minimum purchase requirement of $1, and its reputation for security and user-friendliness, make it a preferred choice for many investors. However, Dogecoin is notably absent from the list of supported cryptocurrencies on PayPal in the UK.

Optimal approach for investing in Dogecoin in the UK – Analysis of exchange rates

For those seeking the most cost-effective method to invest in Dogecoin in the UK, several factors should be considered. Here is an overview that aligns with the most economical options:

• Brokers: Platforms like MEXC provide avenues for investing in Dogecoin. With an investment minimum of around £5, MEXC imposes a 2% fee on debit card purchases, while competitors like Coinbase charge 3.99%.
• Centralized exchanges: Traditional exchanges offer various payment options, including bank deposits, which are typically free but may take several days to clear.
• Decentralized exchanges: These are often lauded for their security and privacy features but may pose a steeper learning curve for beginners.
• Payment methods: Debit/credit cards and e-wallets offer instantaneous processing, but fees can vary among providers. Being aware of the trading commission and potential withdrawal fees is crucial for minimizing costs.
• Hidden expenses: In addition to transaction fees, investors should be mindful of potential withdrawal charges depending on the chosen broker or exchange.

Key considerations before investing in Dogecoin

Before purchasing DOGE in the UK, it's essential to consider factors that could impact its future trajectory. Here are critical aspects potential investors should bear in mind:

• Speculation: Meme cryptocurrencies like Dogecoin are often influenced by speculation and hype rather than intrinsic value. While Dogecoin's remarkable surge of over 8,000% in just seven months in 2021 garnered widespread attention, such rapid growth can also lead to substantial declines. Unlike traditional investments in established stocks, which may demonstrate steady growth over time, Dogecoin's volatility can result in significant profits as well as substantial losses.
• Influence of Elon Musk: Elon Musk's previous endorsements of Dogecoin played a pivotal role in its price surge. However, his recent silence and allegations of insider trading in a lawsuit could impact investor sentiment in the short term. Relying on the remarks of a celebrity for market movements underscores a lack of stability and may dissuade long-term investors.
• Performance: While Dogecoin may be valued for its rapid and cost-effective transactions, other blockchain networks like Solana significantly outperform it. Dogecoin's failure to enhance the efficiency of its network may render the project obsolete in the face of competitors offering superior technology.
• Ongoing SEC case: The SEC recently filed charges against Binance, including accusations of operating as an unregistered exchange and misrepresenting trading controls. This legal uncertainty may cast a shadow over Dogecoin's recovery and the broader cryptocurrency market, contributing to increased uncertainty.

What are the detailed step-by-step instructions for purchasing DOGE in the UK?

For those considering where to invest in Dogecoin in the UK, this segment provides a comprehensive guide on how to purchase DOGE through MEXC.

Step 1: Registration

Platforms like MEXC enable investors to link to the exchange using a cryptocurrency wallet like MetaMask. Alternatively, you can sign up by providing your email address or phone number.

Step 2: Verification procedure

As a component of the Know-Your-Customer (KYC) protocol, you will need to submit identification documents like a passport or driver's license, along with a recent utility bill or bank statement.

Step 3: Fund your account

Begin your DOGE investment journey by depositing funds into your account. UK customers can initiate with a minimum of £5 and select from payment options such as SEPA transfers, credit/debit cards, or bank transfers.

Enter the desired purchase amount and verify the transaction.

Step 4: Locate and purchase DOGE

Following the deposit, locate Dogecoin by typing 'DOGE' in the search bar. 

An order box will emerge, allowing you to input the desired investment amount before confirming the transaction.

In this thorough manual detailing the process of acquiring DOGE, we've delineated the most economical and secure approaches, with a particular emphasis on MEXC.

Whether you're in the UK or elsewhere, purchasing Dogecoin becomes straightforward when opting for reputable brokers or exchanges. From an exhaustive examination of the leading choices to step-by-step guidance, we've encompassed all the essentials for investing in Dogecoin.