Whether you are new to the cryptocurrency markets or a seasoned professional, diversification of crypto investments beyond the popular Bitcoin and Ethereum is being seen as a crucial growth strategy in the long run.
Dogecoin (DOGE), which recently rose to popularity after being promoted by Tesla and SpaceX CEO Elon Musk, is one of the emerging cryptocurrencies that is expected to hit the $1 price point in the coming years.
However, with the plethora of options available, buying Dogecoin in Belgium can be overwhelming. This article is designed to guide you through the process and provide an in-depth understanding of the variety of choices available to Dogecoin investors in Belgium.
Why Trade Dogecoin instead of Buy Dogecoin?
No wallet is needed:
Trading Dogecoin allows you to speculate on the cryptocurrency’s price movement without owning it. This exempts the trader from having to go through the hassles of owning and managing a wallet.
Use usual payment methods:
Trading the coin offers better accessibility as most crypto brokers accept widely used payment methods including bank transfers, third-party payment processors and credit/debit cards.
Easy & fast:
Trading allows the investor to take advantage of all the potential opportunities of Dogecoin’s volatility. Further, Traders can use robots to employ entry orders, stop losses and other risk management techniques that cannot be used in case of a DOGE purchase.
The Best Places to Buy Dogecoin in Belgium in 2021
Belgium offers immense potential to Dogecoin traders as the country houses some of the largest crypto exchanges in the world. The future for Dogecoin in Belgium also looks promising as several Bitcoin ATMs are currently operating in the country and they are expected to support altcoins in the coming years. However, with the number of options available, choosing the most suitable place to buy Dogecoin can be difficult. To aid in this process, here is a list of the top exchanges/brokers in Belgium.
How to Buy Dogecoin With the Best Broker in Belgium
While many robust brokerage services operate in Belgium, it is important to choose one that meets security and legal requirements. This section is a step-by-step guide to registering and operating an account with top brokers in Belgium.
1. Register with a Reputable Broker
It is crucial to register yourself as a trader with a credible brokerage service before you can begin exchanging Dogecoin. You can choose a cryptocurrency broker based on the various factors including the cost, legal status, reviews and security features. To register your account, you will have to enter details including your name, phone number, and email address before clicking the “Open a new account” button.
2. Verify your Identity (KYC Process)
Most registered brokers strictly follow the Know Your Customer (KYC) regulations laid out by the local financial regulators. The objective of the KYC process is to verify your identity and thus will involve the submission of any government-issued documentation. While you may use the Belgian identity card to verify your identity and residential address, brokers also accept passports and driving licences.
3. Deposit Funds with your Preferred Payment Method
To begin trading through a broker, you must first deposit funds that will be used to make your first purchase. Several payment options are offered by brokers in Belgium to facilitate smooth transactions. You can buy Dogecoin using fiat currencies like the Euro or the US Dollar. You can transfer the funds through a bank or use your credit/debit card. Third-party payment processors can also be used. However, it is wise to remain mindful of the transaction fee associated with each of these options.
4. Open a Position to Long/Short Dogecoin
Long positions refer to cryptocurrencies that have been bought and held for the long term, while short positions involve speculating that the price of DOGE will decline. Shorting doesn’t require that actual DOGE tokens be owned—the bet is made using a derivative contract.
eToro enables traders to open a long position without leverage, as the platform allows the actual coin to be owned and sold by the user once a target price is met. However, a user who wants to go short must purchase CFDs (Contract for Difference) which can be closed at the target price. Profit can be earned if the user’s predictions are realised.
Stop-loss orders, market orders, trailing stop-loss orders, All or None orders, and Immediate or Cancel (IOC) orders are some of the options available to a trader. A market order sells the cryptocurrency at the current market price while a limit order executes the transaction only when the price of the coin meets the target price of the user.
5. Close your position
You must close your position at the desired target level to earn profits. This can be done either manually by clicking on the sell button once the market price reaches the target level or automatically by setting a criterion for the closure of the position. This is often used by traders in the form of stop-loss orders or take-profit orders as means of risk management. A stop-loss order closes the position once the price falls to a certain point to minimise losses and a take-profit order automatically sells once a price higher than the target price is attained.
How to Buy Dogecoin With the Best Exchange in Belgium
The biggest difference between a cryptocurrency exchange and a broker is that an exchange is a direct authority that facilitates a trade execution whereas a broker is an intermediary. With many well-known exchanges operating in Belgium, the European country is one of the best places to live if you’re interested in crypto assets.
When you trade through an exchange, the cryptocurrency is delivered to your wallet for secure storage. The following section describes everything you need to know about trading Dogecoin through an exchange in Belgium.
1. Set up a Wallet
Access to a secure crytocurrency wallet is key to safely storing the Dogecoin you purchase. You can choose between software wallets, exchange wallets, or hardware wallets based on your needs with regards to convenience and security.
Software Wallets: Software wallets can be downloaded on your device and offers complete control and considerable security since each cryptocurrency is stored on your computer hard drive and is only accessible on your computer
Web or Exchange Wallets: Web wallets are embedded into a crypto exchange and do not offer complete control over the coins to the trader. Despite the security features offered by such platforms, web wallets are more prone to cyber-attacks.
Hardware wallets: Hardware wallets are physical devices that store your cryptocurrency in a tangible form. They are portable and offline, making it the safest way to store your crypto coins.
2. Choose and Join an Exchange
It is crucial to choose an exchange that adheres to the local crypto regulations of your city and insists on KYC and other verification mechanisms. This will help you minimise the risk involved in transacting through an exchange. You can compare exchanges based on their security features, the transaction costs, and the fiat pairs offered. Most exchanges in Belgium offer Euro as a fiat option against Bitcoin and that can be used to purchase Dogecoin. Many will also offer EUR/DOGE pairs.
3. Choose Your Payment Methods
Depositing funds into your wallet embedded into the exchange is a fairly simple process. You can add funds either through direct bank transfer which is fast and cheap or through debit/credit cards which are often considered more convenient. Most exchanges in Belgium facilitate transactions directly in Euro and do not require users to exchange the local currency into USD. Third-party payment processors can also be used to deposit funds.
4. Place an Order to Buy Dogecoin
Dogecoin has risen in popularity in recent months and is offered on most exchanges as a direct fiat pair with the Euro. However, if such a fiat pair is unavailable on the exchange of your choice, you can use the fiat currency to buy Bitcoin and use the Bitcoin to trade in Dogecoin. To place an order for a cryptocurrency, you must first deposit the required funds. Then you can either choose to buy at the market price or approve the exchange to automatically place an order when the coin reaches your target price.
5. Safely Storing Your Dogecoin in a Wallet
It is important to remember that once you purchase Dogecoin, it must be transferred into a crypto wallet to avoid the loss of tokens as a result of theft, computer failure and loss of access keys. You can do this by using the withdrawal tab on the exchange and entering the crypto wallet address of the wallet you choose to transfer it to. Users interested in the safest storage should consider using a hardware wallet for long-term cryptocurrency storage.
What if I want to Buy Dogecoin with Cash in my City in Belgium?
You can buy Dogecoin directly using your local currency by directly meeting an individual who owns DOGE or through ATMs and peer-to-peer exchanges. However, in the interest of security, buying Dogecoin through a reputable exchange is recommended.
Buying cryptocurrency from an individual opens you up to the risk of fraud as there is little opportunity to verify that both sides of the transaction have been held up. Peer-to-peer exchanges with escrow facilities offer a better alternative as it allows you to trade with an individual using cash while ensuring that the cryptocurrency is delivered and payment is made.
With about 41 crypto ATMs in the country, Belgium allows in-person transactions at rates lower than found in most other parts of the world. Major cities in the country including Antwerp, Bastogne, Bruges, Brussels, Genk, Ghent, Hasselt, Kortrijk, Liège and Mechelen house crypto ATMs that support Bitcoin. This BTC can then be used to buy Dogecoin.
While cryptocurrency is formally unregulated in Belgium, the financial and legal authorities in the country have announced plans for an upcoming framework for cryptocurrencies. Presently, all income earned through cryptocurrencies is categorised as “miscellaneous income” subject to a 33% tax.
3 Tips to Buy Dogecoin
Despite its history as a meme coin, DOGE has managed to create a considerable tide in the crypto market as supporters aim for the $1 price level. However, before buying cryptocurrency, here are a few useful guidelines to keep in mind.
1. Choose the Right Time and Do Your Own Research
DOGE has been endorsed by famous crypto celebrities like Elon Musk and is today being recommended by many experts on the internet. Simultaneously, there are long-time crypto investors who have discarded the hype around Dogecoin as a fad. Thus, it is important to do your own research into the past, present, and future of the cryptocurrency and choose the appropriate time to invest based on your predictions.
2. Comparing Costs to Buy Dogecoin
While the actual price of Dogecoin may be the same across platforms, different exchanges and brokers charge different brokerage fees, transaction fees, withdrawal fees, and commission. Thus, it is crucial to compare the total costs involved in conducting a transaction with a platform with other similar platforms before placing the buy order. Despite seeming insignificant, additional costs can eat into your profits and can be inconvenient for users who trade frequently.
3. Safety and Security
With the increase in the popularity of cryptocurrency comes the increase in the possibility of being a victim of cybercrime. This means that the security features of the platform being used to facilitate your crypto transaction are of utmost importance.
Anti-DDoS modules and SSL encryption are among the tools used by major exchanges to add a level of protection. On your end, enabling a two-factor authentication process might offer improved security, and using anti-virus software is recommended.
Can I buy Dogecoin with Euros?
Most exchanges in Belgium support direct transactions in Euros. Thus, you can easily purchase Dogecoin using the local currency by following the steps above and choosing to conduct the transaction via a DOGE/EUR pair. Trading through an exchange that supports the Euro not only ensures seamless transactions but also saves precious foreign exchange fees.
Other Ways to Buy Dogecoin in Belgium?
Here are some options you can consider beyond the ones mentioned above to purchase Dogecoin in Belgium:
Use a Dogecoin ATM to Buy DOGE: Often called the most convenient way to buy and sell tokens, crypto ATMs are spread across all major cities in Belgium. You can use a coin ATM tracker to find the nearest crypto ATM to your location and buy Bitcoin directly using Euro. You can then trade your BTC for DOGE.
Other Ways to Get Dogecoin: Another way to obtain Dogecoin is through cryptocurrency mining. Dogecoin’s network uses a system similar to Bitcoin’s for adding new blocks to its decentralised ledger and reaching consensus among its network participants. Miners are rewarded with DOGE for successfully verifying transactions. However, it is crucial to remember that mining DOGE is not a simple task and often requires costly equipment. Dogecoin has also emerged as a popular tipping option on websites like Reddit and Facebook, offering creators another way to earn the cryptocurrency. Furthermore, DOGE can be traded peer-to-peer in Belgium through exchanges like LocalBitcoins.
As the most popular meme coin, DOGE is widely available to be transacted with and traded in Belgium both via brokers and crypto exchanges. The crypto coin supports multiple payment methods including debit/credit cards and third-party payment processors, making it a convenient option. Its future growth potential coupled with the recent rise in interest has made DOGE an exciting choice for many new and seasoned crypto traders.
Frequently Asked Questions
Yes, while cryptocurrency is not legal tender in Belgium, trade and transactions in DOGE are legal.
No. You can initially store the purchased Dogecoin in an exchange wallet or software wallet, then transfer it to a hardware wallet for long-term safekeeping.
While both options allow you to trade Dogecoin, a broker acts as an intermediary who does not deliver DOGE to your wallet but allows you to trade based on the price of DOGE. On the other hand, an exchange will deliver DOGE to your wallet and enable complete ownership of the cryptocurrency.
Yes. Reputed and registered platforms require mandatory fulfilment of the local government’s KYC norms to deter fraudulent entities from trading.
Yes, Belgium has over 40 crypto ATMs across the country that support the trading of cryptos with Euros. You can easily convert coins like BTC into DOGE after purchasing them at an ATM.