Originally created as a joke or meme cryptocurrency, Dogecoin (DOGE) has come a long way since its launch in 2013. Dogecoin has appreciated considerably over the years and currently stands in 8th position amongst all crypto coins in terms of market cap. A lot of credit for this goes to its ardent fan community that includes the likes of Elon Musk.
While Mexico’s financial institutions are disallowed from dealing in cryptocurrencies, average Mexicans can freely buy and trade crypto coins including Dogecoin. Let’s learn more about how to buy Dogecoin in Mexico below.
Why Trade Dogecoin instead of Buy Dogecoin?
No wallet needed:
There’s no need for a crypto wallet when you trade Dogecoin via a broker, as there is no actual DOGE transfer involved.
Use usual payment methods:
Brokers providing DOGE trading services are usually open to all commonly-known payment methods like credit/debit cards, PayPal, Skrill, Neteller and bank transfers.
Easy & fast:
Dogecoin trading is as such easier and quicker than buying/investing in the coin. You can further expedite the process with the help of trading bots.
The Best Places to Buy Dogecoin in Mexico in 2021
Online cryptocurrency exchanges and broker platforms are the best places to buy Dogecoin in Mexico in 2021. The country has a large number of local and international crypto trading platforms, and some even accept cash deposits through local stores like Oxxo and 7-Eleven for funding of crypto and Dogecoin purchases. We have compared and shortlisted some of the best crypto brokers in the country below, to help you buy Dogecoin instantly, without any delays or hassles.
How to Buy Dogecoin With the Best Broker in Mexico
Just as in conventional trading, though choosing the asset is crucial, it is even more important to pick the right broker for your needs. There are several reputed and experienced crypto brokers in Mexico that will allow you to buy DOGE through them. However, they may vary based on their regulatory status, customer service, fees, supported crypto coins, terms of service and payment options. You can either research and locate a good platform yourself, or pick any from the recommended ones in our list above, and start right away. Below we have detailed how you can use such brokers to easily buy Dogecoin in Mexico.
1. Register with a Reputable Broker
After you have found the broker you’d like to use to buy or trade DOGE, visit its homepage and look for the ‘Open a New Account’, ‘Sign Up’, or ‘Register’ button. Click it and then complete the registration process by providing some basic details like your name, address, phone number and a valid email ID.
2. Verify your Identity (KYC Process)
All regulated brokerage platforms will ask you to verify your identity through a government-issued photo ID. Some may even ask you to upload a separate document like a utility bill to verify your address. These are all necessary steps that must be taken by crypto brokers to comply with the global CFT (Combating the Financing of Terrorism) and AML (Anti Money Laundering) laws. It’s always better to use regulated service providers as they ensure the safety of everyone involved by taking such steps and keeping bad actors at bay.
3. Deposit Funds with your Preferred Payment Method
Crypto brokers in Mexico will normally allow you to deposit funds using a good variety of payment methods, including popular ones like credit/debit cards, PayPal, Skrill, Neteller, and bank transfer. Nonetheless, the options provided may vary from portal to portal. Hence, it’s always better to check beforehand.
4. Open a Position to Long/Short Dogecoin
You take a long position on a crypto coin to benefit from a rise in its market value and a short position to exploit its price drop. Let’s go through an example using the eToro broker platform to better understand such trading.
When you open a long position on Dogecoin through eToro, without using the leverage option, you’ll be trading DOGE’s actual ownership. If DOGE rises in value, you’ll book a profit, and if it falls, you’ll make a loss.
On the other hand, a short position on Dogecoin is opened on eToro through a derivative like a CFD (Contract for Difference). In this case, you simply bet on the possibility of Dogecoin’s price dropping in the near future. No actual DOGE is exchanged. If DOGE drops in value, the difference between the prices of your opening and closing CFD trades will make up your profit.
You can use different order types like stop-losses, trailing stops, market orders and limit orders to manually or automatically open and close your positions. Doing so can help you open trades, register profits, and cut back losses at the right price points.
5. Close your position
Closing an open position on Dogecoin implies completing the trade, and assuming the profit or loss arising from it. Though you can close your positions manually any time, if you feel that DOGE’s price has reached the right level, you can also automate this task by specifying take-profit, stop-loss, and trailing-stop loss points beforehand.
How to Buy Dogecoin With the Best Exchange in Mexico
CoinMarketCap actively tracks over 300 crypto exchanges operating in various parts of the world. Many such international and local trading platforms serve Mexican investors and traders too. Platforms like Binance and others have unique characteristics that make them appealing to Mexican citizens for purchase of Dogecoin in the country. However, to make a purchase through crypto exchanges, you’ll need to familiarise yourself with certain processes like setting up a wallet and more, as detailed below.
1. Set up a Wallet
A cryptocurrency wallet can be described as a software program that encrypts and safeguards the private keys associated with your crypto coins, including Dogecoin. These are broadly of two types:
Software wallets – Meant for installation and use on laptops, mobile devices, and desktop computers, software crypto wallets stay online most of the time, which although makes them readily available, also increases the risk of hacks.
Hardware wallets – Sold as small flash-drive sized physical devices, hardware crypto wallets are believed to be the safest amongst all wallet types. They remain offline but can be plugged into a computer or mobile device at any time for the easy transfer of funds.
2. Choose and Join an Exchange
It’s important to opt for a crypto exchange that’s well known in the market and holds a good track record with seasoned crypto investors and traders. To successfully choose and join the right exchange for your needs, you should compare multiple platforms based on factors like their security features, fees, customer service, offered trading pairs, regulation and payment methods. Well-regulated exchanges are always preferred over unregulated portals, as they’re more secure.
3. Choose Your Payment Methods
Considering that there’s a good number of both local and international crypto exchanges operating in the country, you can use a wide variety of payment methods including debit/credit cards and bank transfers to fund your account and buy Dogecoin. Some local crypto exchanges also allow cash deposits through Oxxo and/or 7-Eleven outlets spread all over the country. Please note, each payment method has its own advantages and disadvantages. For instance, while bank transfers are affordable but slow, debit/credit card deposits get processed quickly but for a higher transaction fee.
4. Place an Order to Buy DOGE
This step will involve selecting a trading pair of your choice, specifying the quantity of Dogecoin you’d like to buy, reviewing the current exchange rate and then clicking the ‘Buy’ button to execute the trade. There may be different trading pairs offered at different exchanges. While local exchanges will almost always offer a DOGE/MXN or BTC/MXN pair, to facilitate easy crypto purchases with local Mexican Pesos, international platforms provide a larger variety involving numerous crypto and fiat currencies.
5. Safely Storing Your Dogecoin in a Wallet
The last step in buying Dogecoin from a crypto exchange, this concerns safely moving the purchased DOGE from the exchange wallet to a self-owned external wallet. It’s an optional step and is usually preferred by occasional and long-term crypto traders. To execute the transfer, use the withdrawal option on the website, enter the quantity of DOGE you’d like to move, input your wallet address, and click the ‘Withdraw’ button.
What if I want to Buy Dogecoin with Cash in my City in Mexico?
As per Coin ATM Radar, there are 12 Bitcoin ATMs installed across Mexico, with 4 in Mexico City. You can buy Bitcoin using cash through any of these 12 ATMs and then easily convert it into Dogecoin at any of the crypto exchanges operating in the country. Another way to make a cash Dogecoin purchase in Mexico is through a peer-to-peer (P2P) platform where you can deposit funds in cash, which are then maintained in an escrow account till confirmation of the DOGE transfer. Besides these, there are some local crypto exchanges that allow cash deposits through local stores like Oxxo and 7-Eleven for Dogecoin purchases.
As per Mexico’s Fintech Law (Ley Fintech), launched in March 2018, the banks and financial institutions in the country are banned from directly dealing in cryptocurrencies. However, average citizens are allowed to freely trade and invest in the majority of crypto coins, including Dogecoin. The increasingly burdensome banking requirements in the North American country are also pushing many locals to embrace cryptocurrencies for their investment, trading, and transactional needs. Furthermore, any crypto-related business in Mexico is required to obtain an authorisation from National Banking and Securities Commission (CNBV) to operate in the country.
3 Tips to Buy Dogecoin
Below are 3 useful tips that can help you make a smooth, secure, and cost-effective Dogecoin purchase in Mexico.
1. Choose the Right Time and Do Your Own Research
Buying Dogecoin at the right time essentially means procuring it at the lowest possible price. This can be done by studying DOGE’s past price movements and analysing technical & fundamental factors which may influence its future price movements. Doing all this can give you a fair idea about which way its price is moving, so you can buy and enter the market just at the right moment.
2. Comparing Costs to Buy Dogecoin
No matter which trading platform you use to buy and sell DOGE, there will be certain costs like spreads, commissions, deposit fees and withdrawal fees that will come into play. Make sure you have compared all shortlisted platforms based on these costs, before using any single service provider.
3. Safety and Security
It’s your responsibility to check that the platform used for your DOGE purchase implements leading security protocols to safeguard your interests. An alternative way of ensuring this is by transacting on a platform regulated by a leading global authority and licensed in Mexico. You may even use additional security layers like Two-Factor Authentication (2FA) to safeguard your funds.
Can I Buy Dogecoin with Pesos?
Yes, it is possible to buy Dogecoin with Mexican Pesos (MXN) in a handful of ways. As highlighted earlier, you can buy Bitcoin with cash at a Bitcoin ATM and then exchange it for Dogecoin at a crypto exchange of your choice. Many peer-to-peer (P2P) platforms in Mexico may also allow you to buy Dogecoin with MXN. Lastly, there are multiple local crypto exchanges operating in the country that readily accept deposits in Mexican Pesos.
Having stated all the above, please remember, online platforms that accept Peso deposits may convert the local currency into USD or some other well-known fiat currency, before making the funds accessible for trading. Such conversion will be done at the prevailing exchange rates and may impact your overall profit margin in the end.
Other Ways to Buy Dogecoin in Mexico?
Use a Dogecoin ATM to Buy DOGE: You can buy Bitcoin from any of the 12 Bitcoin ATMs installed across Mexico, and then convert BTC into DOGE at a recognised crypto exchange.
Other Ways to Get Dogecoin: There are few other effective ways in which you can acquire Dogecoin in Mexico. First among these is Dogecoin mining. Dogecoin works based on the Proof of Work system and Dogecoin miners use computer hardware to process complex DOGE transactions on its blockchain. They get rewarded in DOGE for this effort.
Another possible way to acquire it is by accepting it as a form of payment for selling goods and services in the country. Lastly, you can get tipped in Dogecoin on platforms like Twitter and Reddit too, for creating and sharing quality content.
Mexico has a fairly large and technically-adept young population, with constantly rising income levels. The country is witnessing a sort of crypto boom, with billions of dollars’ worth of cryptocurrencies traded at local and international platforms. You can easily buy Dogecoin or any other cryptocurrency in Mexico today, using a wide variety of methods as discussed above in this article.
Frequently Asked Questions
Yes. Cryptocurrencies like Dogecoin are viewed as intangible assets in Mexico and any gains made from their trading are taxed at anywhere from 2% to 35% for individuals.
No. Mexican citizens can freely buy and sell cryptocurrencies in the country. However, banks and financial institutions in Mexico are banned from directly dealing in crypto assets.
The most secure way to buy Dogecoin in Mexico is through a well-regulated cryptocurrency exchange or broker.
Yes. All regulated trading platforms in Mexico will ask you to verify your identity using certain government-issued documents, before permitting you to use their services for DOGE purchase.
No. You can store your Dogecoins in free software wallets offered by various reputed brands on the internet.