Elon Musk, the founder-CEO of SpaceX and Tesla and a long-time supporter of Dogecoin (DOGE), recently hinted that the meme cryptocurrency’s upcoming upgrade will solve its scalability issues and pose it as a direct rival to Bitcoin and Ethereum by offering faster and cheaper transactions than these top-line blockchains.
As Dogecoin’s popularity rises, so does its value. With a plethora of ways to obtain Dogecoin in Argentina, it is crucial more than ever for investors to gain an in-depth understanding of buying through an exchange, a broker, or a crypto ATM. This step-by-step guide will answer any questions you might have about buying Dogecoin in Argentina.
Why Trade Dogecoin instead of Buy Dogecoin?
No wallet needed:
Trading DOGE over buying it removes the hassles of creating and operating a crypto wallet as you will not actually own the coins. Wallets further act as a single point of failure that if accessed, will compromise all of your sensitive information.
Use usual payment methods:
From bank transfers and third-party payment processors to debit and credit cards – trading Dogecoin is made simple and convenient by crypto platforms to ensure seamless trading.
Easy & fast:
Trading allows investors to exploit the high speed of transactions and the volatile price movement of Dogecoin for their gain, while buying usually compels them to hold through all of the volatile ups and downs in DOGE’s price.
The Best Places to Buy Dogecoin in Argentina in 2021
Argentina has been one of the major countries to have gone above and beyond to facilitate the mass adoption of cryptocurrencies. Recently, their parliament received a bill to allow workers to receive their salaries in cryptocurrency. This also means that the South American country has facilitated the functioning of top cryptocurrency platforms, both global and local, within its territories. Given below is a list of the top reputed brokers that operate in Argentina that can help you get started in trading Dogecoin.
How to Buy Dogecoin With the Best Broker in Argentina
Cryptocurrency brokers act as a middleman between investors and the market, enabling traders to trade in the crypto market at prices set by the broker. While the fee charged by the broker for enabling a transaction might be higher than that of an exchange, brokers offer convenience, easy payment methods and top-notch support to their clients. This section talks in detail about the steps one must follow to buy DOGE with a broker in Argentina.
1. Register with a Reputable Broker
Before registering with the broker of your choice, it is wise to ensure that the services offered match your needs and that the broker has a robust security system. Other criteria for the choice can be payment methods and the ability to reach out to the broker 24/7. Brokers can be accessed either from a website or a mobile application. You can use this website or mobile application to fill in the registration form with details including your name, email address, residential address, and contact number to start the process of opening an account.
2. Verify your Identity (KYC Process)
KYC (Know Your Customer) is a process that every investor with a regulated crypto broker must comply with to successfully create an account. It involves the verification of one’s identity and can be completed by submitting any government-issued document that displays your name and residential address. You can submit the Documento Nacional de Identidad or DNI other than passports and driving licences in Argentina.
3. Deposit Funds with your Preferred Payment Method
Choosing a broker who can enable your preferred payment method, be it direct bank transfers, third-party payment processors, or credit/debit cards, can make the transfer of funds both convenient and beneficial in the long run. To deposit funds, choose the add funds option and select the payment method you would like to continue with. You must then validate the transaction and the amount will be deposited to your account on the broker’s platform within a day.
4. Open a Position to Long/Short Bitcoin
To own an asset like Bitcoin, investors can either open a long position or a short position based on their anticipation of the asset’s price movement. Online crypto platform eToro enables investors to enter a long position without leverage and gain profit if the target price is reached. It is important to note that while entering a long position you own the actual coin while a short position can be entered via a Contract for Difference or CFD. Once the target price is achieved, investors can close the CFD and take home the difference between the opening and closing price as profit.
With advanced risk management features, you can instruct the platform to automatically execute the buy/sell order the moment a specified price is met – either to secure profits or minimise losses. This may be in the form of stop-loss order, market order, trailing stop-loss order, All or None order, or Immediate or Cancel (IOC) order.
5. Close your position
It is important to close your position once the desired price is achieved. You can do so either manually or mandate the platform to close your position after reaching a certain price point. While manually closing your position gives you the benefits of keeping your investment strategy flexible till the last minute, it requires constant monitoring of the market.
Automatically closing your position after reaching a pre-set criterion ensures you are not swayed by the market and enables a consistent investment strategy. One such popular mechanism used by investors is stop-loss orders. Enabling it closes the position when the investor’s predictions are not realised and the price continues to fall/rise. Here, the investor exits at a predetermined price point to protect the capital. Take-profit orders do the same, but in the opposite scenario.
How to Buy Dogecoin With the Best Exchange in Argentina
Dedicated to providing top-rated security and advanced features for seasoned traders, cryptocurrency exchanges, unlike brokers, allow traders to transact at the market price, and purchase real tokens. Several global and local exchanges operate in Argentina, making it challenging to choose the most suitable one without comprehensive knowledge of their functioning. The section below explains in detail the end-to-end process of buying Dogecoin with a crypto exchange in Argentina.
1. Set up a Wallet
A cryptocurrency wallet is necessary to store and manage your coins once they have been purchased through an exchange. Here are the three major types of crypto wallets:
Software Wallets: Software wallets can be installed onto your device and store cryptocurrency on your hard drive. It is a secure solution to threats from hackers, though the coins might still be vulnerable to attacks that target the hard drive.
Web or Exchange Wallets: Web wallets are online crypto wallets embedded into the exchange account. Despite the many security features enabled by the exchange, they are most prone to cyber threats and only suitable for short term shortages.
Hardware wallets: Hardware wallets are the most expensive out of the three and offer the highest level of security for cryptocurrencies. It stores coins in a physical device similar to a USB and is preferred for long term storage.
2. Choose and Join an Exchange
Significant research is required before choosing the exchange you want to trade with to ensure a seamless experience. Top criteria for choice may include reliability, security, user-friendliness, convenience, and the fiat currency pairs offered.
It is also important to ensure that the exchange is a legally registered entity and follows all identity verification procedures laid out by the local authorities. Once you make your decision, creating an account is a simple process that requires you to submit your details and proof of identification.
3. Choose Your Payment Method
While choosing your payment method might seem like an insignificant process at first, it will have a major impact on the speed of transactions, convenience, and your overall experience with the exchange. Whether you choose to facilitate the transaction using direct bank transfer, debit/credit cards, or third-party payment processors also affect the overhead costs you will pay as a transaction fee. You must also choose whether you want to trade through a local exchange that might support transactions directly in the Argentinian Nuevo Peso (ANP) or trade using global currencies like USD/Euro.
4. Place an Order to Buy Dogecoin
After choosing your payment method and deciding on your fiat pair, you can deposit the initial funds into your account and start the process of buying Dogecoin. You can either buy DOGE manually at market price or instruct the exchange to place a buy order once the price of DOGE reaches your desired level. Once the buy order is placed, the funds will be withdrawn from your account and DOGE will be delivered.
5. Safely Storing Your Dogecoin in a Wallet
While the transaction can be expected to be seamless due to DOGE’s high speed of transactions and the exchange’s user-friendliness, it is important to not let your guard down once the transaction is executed. The delivered Dogecoin must be stored safely in a wallet, depending on your needs. Web Wallets are not recommended due to their vulnerability to cyber-attacks. You can withdraw the coins by entering the address of your hardware or software crypto wallet and validating the transaction on the withdrawal tab of the exchange’s website/application.
What if I want to Buy Dogecoin with Cash in my City in Argentina?
While buying cryptocurrency electronically and digitally offers higher convenience and accessibility, trading using cash is an option for investors who want to protect their identity. You can buy Dogecoin from a local investor using ANP or contact a peer-to-peer exchange to connect you with an investor who also wants to trade in cash. You can also buy Dogecoin using cash through a crypto ATM.
If you choose to directly trade with another investor, it is recommended to go through a peer-to-peer exchange as it can verify the transaction and prevent fraud. However, crypto ATMs offer a better bet as they not only overcome the long waiting period of P2P exchanges but are also accessible, convenient and user-friendly.
Argentina has 12 crypto ATMs in the country, 11 of which are located in the capital city of Buenos Aires. These machines support the purchase of Bitcoin using the local currency and are simple to use. With the number of crypto ATMs across the world increasing every day, it is only a matter of time before other cities in Argentina can also witness the benefits of purchasing cryptocurrencies through an ATM. Once Bitcoin is purchased, it can be traded for Dogecoin easily on a peer-to-peer exchange.
Crypto assets in Argentina are neither prohibited nor heavily regulated. However, cryptocurrencies are not legal tender and can only be traded or transferred. Despite no legal framework being enacted regarding cryptocurrency, Argentina has some specific regulations related to reporting and tax regimes that are applied country-wide.
3 Tips to Buy Dogecoin
Dogecoin’s recent price surge has drawn considerable attention from both new and seasoned investors. However, here are 3 things you should do before you make your first purchase.
1. Choose the Right Time and Do Your Own Research
With the volatility in the crypto market, timing your investment becomes crucial for maximising profits. Though numerous resources guiding your investment decisions are available online, doing your own research will ensure you have better insights and help determine whether investing in DOGE fits your investment portfolio. Thus, understanding the history, price movement and predictions of the coin will be significant in making the right decisions while trading.
2. Comparing Costs to Buy Dogecoin
While the actual price of DOGE will be the same across platforms, the add-on costs like brokerage fee, transaction fee, withdrawal fee, and commission will make a difference to the profits you make in the long run. Thus, it is important to compare and contrast such costs between the different platforms and ensure that you don’t end up paying any hidden fees after the transaction.
3. Safety and Security
It is important to study the security features offered by exchanges or brokers before choosing to open an account. Adherence to Domain Name System Security Extensions (DNSSEC) protocols can add an additional layer of security. Two-factor authentication, if available, is recommended. It is also important to not store all the currency you own in a single wallet and use a hardware wallet for long term safe storage.
Can I buy Dogecoin with Argentinian Peso?
While most local brokerage services may accept payment directly via ANP, platforms that are not native to Argentina might insist on accepting payments only in USD or Euros. In this case, crypto exchanges usually allow users to deposit funds using the local currency and charge a small foreign exchange fee to facilitate the transactions in global currencies. While the exchange rate might differ across platforms, investors will be charged the same in local currencies as they are charged in Euro or USD.
Other Ways to Buy Dogecoin in Argentina?
This section explains how you can purchase or obtain DOGE for users looking to buy Dogecoin from platforms other than those mentioned above.
Use a Dogecoin ATM to Buy DOGE: Crypto ATMs are not only fast, simple, and convenient, but they also enable users to trade directly using the local currency or USD/Euro. ATMs are also preferred by traditional investors who are new to the crypto market as it offers a tangible alternative to trading through exchanges. You may need to buy Bitcoin first and then trade it for Dogecoin, as many ATMs don’t directly sell DOGE.
Other Ways to Get Dogecoin: Peer-to-peer exchanges can connect you with local and global investors looking to buy and sell DOGE. Small portions of Dogecoin were used in the coin’s early days to tip content creators on websites like Reddit and Facebook, a tradition that is still followed in the DOGE community. Another popular yet unreliable option to get DOGE is through mining. Miners are rewarded with Dogecoin for successfully verifying transactions, and Dogecoin mining is more rewarding than mining Bitcoin or Ethereum. However, the process is complicated and can be expensive.
Dogecoin advocates predict that the coin is expected to hit the $1 price point in the coming years, making it an exciting time for long term investors to profit from the coin’s growth. Argentina’s crypto-friendly approach and the potential for full-scale crypto adoption across South America in the coming years makes it imperative for investors to diversify their portfolios with emerging cryptocurrencies like DOGE. However, in-depth research into the workings of the coin, risk assessment and understanding how trading platforms operate is crucial before investing.
Frequently Asked Questions
Yes, trading and transactions of DOGE are legal in Argentina. However, cryptocurrency is not legal tender in the country.
No. You can initially store the purchased Dogecoin in the web wallet embedded into the trading platform.
While both options allow you to trade Dogecoin, a broker does not deliver DOGE to your wallet but allows you to trade DOGE on a mutually agreed price. An exchange, on the other hand, allows you to trade at market price and delivers DOGE to your wallet.
Yes, most registered exchanges and brokers will insist on completing your KYC before transacting.
Yes, the capital city of Argentina is home to 11 crypto ATMs that facilitate the purchase of Bitcoin, which can then be swapped for DOGE.