How to Buy Dogecoin in Austria - Beginner's Guide

How to Buy Dogecoin With the Best Broker in Austria

Cryptocurrency brokers enable investors to buy, sell, or exchange Dogecoin in Austria online through a safe and secure marketplace while simultaneously allowing users to trade using a wide range of payment options. The below guide explains the end-to-end process of choosing, registering, and trading with a brokerage service in Austria.

1. Register with a Reputable Broker

It is essential to identify a reputable broker who meets your requirements both in terms of cost and safety, then complete the registration process with them to trade Dogecoin legally in Austria. The registration must be fairly simple and straightforward. It will require you to enter your name, email ID, address, and other such details. You can contact the top shortlisted brokers in the list above to get started on your crypto journey.

2. Verify your Identity (KYC Process)

Know Your Customer or KYC is a mandatory identity verification process by the financial authorities in Austria designed to assess customer risk and prevent fraud. It can be completed by submitting a government-issued document that displays your name and residential address such as passport and driving licence or the Austrian identity card.

 3. Deposit Funds with your Preferred Payment Method

Choosing a broker who supports a payment method convenient to you can be beneficial in the long run. Most brokers allow you to deposit funds through direct bank transfers, third-party payment processors, and credit/debit cards. However, it is important to note the transaction fee for each of the payment methods and whether the broker supports deposits in Euro before making your choice.

4. Open a Position to Long/Short Dogecoin

Investors enter a long position with reference to a cryptocurrency like Dogecoin in the expectation that it will rise in value in the future. A short position involves speculating that the price of Dogecoin will decline using a derivative such as a CFD.

eToro allows you to open a non-leveraged long position on a cryptocurrency. This means that you are investing in the underlying asset without owning the actual coin. The platform also enables short positions through CFDs (Contract for Difference) where the trader and the broker replicate market conditions and settle the difference between themselves when the position closes.

Traders can also use a stop-loss order, market order, trailing stop-loss order, All or None order and Immediate or Cancel (IOC) to manage their risk and ensure that a certain transaction is conducted when the cryptocurrency hits a certain market price.

5. Close your position

Closing your position involves finishing a trade to eliminate the initial exposure and is usually done once either the cryptocurrency achieves the target price or to avoid further losses. You can manually close the position by clicking the sell button or automate the process in the form of stop-loss orders or take-profit orders. A stop-loss order minimises losses by selling the cryptocurrency after the price falls beyond a specified price point, whereas the take-profit order sells the coins to make a profit after the price rises above the predicted level.

How to Buy Dogecoin With the Best Exchange in Austria

Crypto exchanges facilitate the trade of crypto assets between buyers and sellers at current market prices. Top crypto exchanges like Coinbase, BitPanda, and Binance operate in Austria and support Euro fiat pairs.

However, sound knowledge of trading processes and cautious handling of cryptocurrencies are necessary to trade with an exchange. Thus, this section explains the step-by-step process of using a cryptocurrency wallet and transacting through an exchange in Austria.

1. Set up a Wallet

Choosing the right wallet is the first step towards investing in Dogecoin through a crypto exchange, as the coins, once delivered to you, must be stored safely. Each type of crypto wallet has its own features and functionalities:

Software Wallets: Software wallets are easy to set up, with the Dogecoin being stored on your computer hard disk. Software wallets are fairly safe and limit exposure to hackers. Examples include Exodus and Trust Wallet.

Web or Exchange Wallets: These wallets allow users to access digital currency through a web browser. While they are fast and convenient, most web wallets are vulnerable to cyber threats. Exchange wallets are an example of this type of wallet.

Hardware wallets: Often regarded as the safest mode of storing crypto in the long run, hardware wallets store cryptocurrency in a physical device and use the investor’s private keys to authorise outgoing transactions. Examples include the Ledger Nano and Trezor series.

2. Choose and Join an Exchange

Cryptocurrency exchanges act as an intermediary in the transaction and charge a trading fee for their services. You can choose either a global or a local exchange based on your requirements. Other criteria in choosing an exchange can be its transaction fees, the fiat currencies offered, convenience and security-based features. It is also important to ensure that your crypto exchange follows KYC and Anti-Money Laundering (AML) protocols and is a legal entity in your city.

3. Choose Your Payment Methods

While payment methods might not seem a hassle for the first deposit, it is a crucial factor in determining the long-term experience of investing through an exchange. Ideally, investors must choose a payment method that is fast, convenient and has low or no transaction costs involved. Exchanges in Austria support direct bank transfer, debit/credit cards and third-party payment processors. They also enable investors to directly trade Dogecoin through the local currency Euro.

4. Place an Order to Buy Dogecoin

Most exchanges are designed to be user-friendly and have a straightforward process to buy Dogecoin through their platform. Once you deposit your initial funds, you can either use the “BUY” option to buy DOGE at the current market price, or you may set a target price upon reaching which the exchange automatically executes the buy order.

5. Safely Storing Your Dogecoin in a Wallet

Once you buy Dogecoin, it is stored in your web wallet embedded within the exchange. However, this must be transferred to a crypto wallet of your choice for safekeeping, especially if you plan to hold the coins in the long run. To move your coins, open the withdrawal tab and enter the address of the crypto wallet you choose to transfer the coins to. Hardware wallets offer the most security, while software wallets may be more convenient, and web wallets are faster than their counterparts.

What if I want to Buy Dogecoin with Cash in my City in Austria?

You can use the local currency to trade electronically or digitally through a reputed exchange or a broker. However, if an investor prefers to transact using cash in Austria, they can contact another individual who holds the currency, sign up through a peer-to-peer exchange, or use a crypto ATM.

Transacting with another crypto investor without the provisions of an escrow account can open you up to fraud and isn’t recommended. Local peer-to-peer services can verify transactions and offer lower transaction fees but are prone to longer trade times. Austria is host to over 159 crypto ATMs, with a number of them being situated in major cities like Vienna, Salzburg, and Linz. These can be used to buy crypto. Many of these can be used to purchase Dogecoin directly.

Austria presently does not regulate virtual currencies and has not issued a cohesive policy on how to treat cryptocurrencies. However, it is important to note that any income earned through trade and transactions of cryptocurrencies in any city in Austria is legally taxed by the financial authorities.

3 Tips to Buy Dogecoin

With Dogecoin being the frontrunner of the meme coins revolution and sparking a price rise in alternatives like Shiba Inu, it is reasonable to believe that the cryptocurrency showcases major growth potential in the future. However, here are three tips to keep in mind before your first transaction:

1. Choose the Right Time and Do Your Own Research

Despite the numerous articles and videos on the internet predicting a bull run for Dogecoin, there is no substitute for your own research. Understanding the benefits offered by DOGE that might sustain such a rally in the long run and determine if it fits your investment portfolio is an important step. It is also crucial to determine when you want to start investing and over what period of time you expect the price to reach your target level.

2. Comparing Costs to Buy Dogecoin

It is important to note that what you see on your “BUY” page while trading Dogecoin is not exactly what you will be expected to pay while placing the buy order. Most platforms charge additional costs such as brokerage fees, transaction fees, withdrawal fees, and commissions. Thus, it is important to compare the overall overhead costs of trading on a platform before choosing to invest through it, as these seemingly insignificant numbers might soon end up compromising your profits.

3. Safety and Security

Security features and precautions adopted by exchanges or brokers must be studied in detail to prevent vulnerability to cyber threats. Look out for anti-DDoS modules, web protocol security, and registry locks as they offer an additional layer of security while transacting through the exchange. Enabling two-factor authentication and not storing all the currency you own in a single wallet can also help secure your investments.

Can I buy Dogecoin with Euros?

Both local and global exchanges in Austria facilitate seamless transactions using the Euro. You can buy Dogecoin as explained above and deposit Euro into your crypto exchange account either through wire transfers or through debit/credit cards and third-party processors.

The Euro is one of the most widely used currencies for buying and selling cryptocurrencies, so expect a seamless trading experience.

Other Ways to Buy Dogecoin in Austria?

This section lists other ways you may obtain Dogecoin other than directly through an exchange or a broker.

Use a Dogecoin ATM to Buy DOGE: Crypto ATMs offer an easy, novel, and in-person way of buying Dogecoin locally. As the number of ATMs grows every day, investors in Austria can choose to trade Dogecoin by simply visiting the nearest ATM, which can be identified using a crypto ATM tracker. Crypto ATMs also allows users to preserve their anonymity and makes Dogecoin more accessible.

Other Ways to Get Dogecoin: DOGE can be purchased through peer-to-peer exchanges in Austria that allows investors access to a global market of cryptocurrency buyers and sellers. Mining, despite its unreliability, is another method to obtain Dogecoin. While Dogecoin mining is favourable over Bitcoin mining as the new blocks are discovered much faster and coin rewards are substantially higher, it is an expensive and tedious process. Being part of the DOGE community also offers a chance to earn small portions of the coin through tipping.

Dogecoin is currently working towards building technological stability with its upcoming update that is focused on maximising the base layer transaction rate & minimising transaction costs. As a financial and crypto hub, Austria is expected to offer immense potential for DOGE investors in the coming years. However, it is important to keep in mind you should only invest with reputed platforms and focus on understanding the price movement of the coin to profit from trading DOGE.