Dogecoin (DOGE) originally started as a joke in 2013 centred around a viral Shiba Inu “doge”, but it has since grown to become a global phenomenon thanks to Internet meme magic. Its incredible start in 2021 has breathed new life into the parody project. The coin’s value has soared nearly 20,000% in one year partially thanks to promotion from celebrities like Elon Musk, Snoop Dogg, and Mark Cuban.
Dogecoin’s surprising return to grace has made it a hot commodity for crypto investors around the world. This guide covers everything you need to know to buy Dogecoin in Peru.
Why Trade Dogecoin instead of Buy Dogecoin?
No wallet needed:
Setting up a wallet isn’t necessary when you’re trading Dogecoin because you’re simply speculating on the price movements of DOGE rather than holding DOGE as a long-term investment.
Use usual payment methods:
Most broker platforms support many of the popular payment options offered by online merchants such as direct bank transfers, credit or debit cards, PayPal, Skrill, and other modes of payment that are popular in Peru.
Easy & fast:
Trading is a fairly straightforward and quick process once you set up an account with a broker platform. Many platforms offer advanced trading tools, including trading robots, so traders can easily take advantage of the rise and fall of DOGE’s price to turn a quick profit.
The Best Places to Buy Dogecoin in Peru in 2021
There are numerous exchange and broker platforms that allow users to buy Dogecoin in Peru. These platforms offer the simplest and quickest method to buy Dogecoin. Some platforms even accept Peruvian soles through various local payment options. Below is a shortlist of the best brokers in Peru.
How to Buy Dogecoin With the Best Broker in Peru
Crypto broker platforms are among the best places to buy Dogecoin online. Many of the brokers that enable Dogecoin purchases in Peru have been operational for several years now. They comply with financial regulators and have extensive experience with providing a safe and secure service to users. Below are the steps to take to buy Dogecoin through a cryptocurrency broker platform in Peru.
1. Register with a Reputable Broker
Before you can start trading Dogecoin, you first need to open an account with a broker. Go through the brokers we’ve shortlisted in the previous section to find the right one for you. Compare costs, security features, and available payment options for users in Peru. Once you settle on a particular platform, go through the account registration process. Registration requires basic information such as your name, email address, phone number, and location.
2. Verify your Identity (KYC Process)
Reputable broker platforms require new users to verify their identity in order to comply with Know Your Customer (KYC) rules. This is a necessary and important step to curb criminal activity. In addition to the standard information required during the sign-up process, you have to provide documentation that proves your identity and residential address. Accepted verification documents include government-issued IDs such as a passport, driving license, or national ID. For proof of address, a recent bank statement or utility bill is usually sufficient.
3. Deposit Funds with your Preferred Payment Method
Brokers typically offer multiple payment methods for depositing funds. A majority of brokers allow DOGE purchases using fiat money, so you could fund your account using U.S. dollars or Peruvian soles (PEN). If you use the latter option, then your soles may have to be converted into U.S. dollars at the day’s exchange rate.
Local bank transfer is the cheapest and simplest way to deposit funds, but it is also possible to use a credit or debit card. Third-party payment options like PayPal and Skrill are popular alternative choices. It may also be possible to pay for your DOGE using another cryptocurrency like Bitcoin, Litecoin, or Ethereum.
Please note that every payment method has its associated fees and costs. Bank transfer generally has the lowest fees, while credit card payments can incur extremely high fees. Consider processing fees when choosing your preferred payment method.
4. Open a Position to Long/Short Dogecoin
Crypto trading broadly involves opening a long or short position. Opening a short position means you are anticipating the value of DOGE will fall, so you buy financial derivatives like a CFD (Contract for Difference) that is pegged to the market price of Dogecoin to take advantage of the fluctuation. The CFD holder turns a profit if their prediction is correct.
On the other hand, opening a long position involves buying and holding Dogecoin in anticipation of a price increase. For instance, if you use eToro to open a long position without leverage, then you have to actually buy DOGE tokens from the platform. You can close your position at any time if your desired price is reached. The biggest difference between short/long positions is that taking a short position doesn’t require you to hold any DOGE. CFDs can be bought and paid for using fiat currency or other cryptocurrencies.
Broker platforms offer a variety of order types to allow traders to be more specific about how they want to fill their trades. For example, you can place a market order which tells the broker when you want to open or close your position. You can alternatively place a stop or limit order that tells the broker that you want your buy/sell order to be executed when the price of DOGE matches a price that you specify. Other order types include stop-loss orders, trailing stop-loss orders, take-profit orders, and all-or-none orders.
5. Close your position
The final step in the trade process is to close your position once your desired target is realised. Traders have the option to manually close their positions if they are happy with their gains or if they want to prevent further losses.
Broker platforms have settings for automatically closing positions when predetermined variables are met. For example, a stop-loss order can automatically close a position if the market unexpectedly turns bearish. The trader’s position is closed when the market price goes below a predefined value to prevent catastrophic losses. It’s a good idea to learn how to use these automated settings to protect your investment capital.
How to Buy Dogecoin With the Best Exchange in Peru
Another alternative for buying Dogecoin in Peru is to use crypto exchanges. Like brokers, exchanges allow users to buy DOGE using a variety of payment options. The biggest difference is that exchanges don’t generally support trading, just buying. The coins you buy are delivered to your wallet, and you can do whatever you want with them.
Peru has not passed any laws or regulations to limit crypto trading at a state level, so users in the region are free to buy and sell cryptocurrencies on exchange platforms. Below are the steps to take to purchase DOGE through a cryptocurrency exchange.
1. Set up a Wallet
The first step before you buy any cryptocurrency is to set up a secure cryptocurrency wallet for storing your DOGE. While exchanges automatically create wallets for users, these third-party wallets are not secure because they offer “hot” (i.e. online) storage. Wallets that are constantly connected to the Internet are vulnerable to hacks and theft, so they’re not recommended for long-term storage. There are three main wallet options:
- Web wallets: These are wallets designed for web browsers. They are the type of wallet that is automatically created by exchanges and brokers. They are easy to use and access, but they’re not secure because they only offer hot storage.
- Software wallets: These are wallet apps designed for desktops, laptops, and smartphones. They are more secure than web wallets because they tend to have more robust security features.
- Hardware wallets: These are physical devices that securely store your coins in a “cold” (i.e. offline) environment. Hardware wallets are considered the gold standard for secure crypto storage and are highly recommended for long-term storage.
2. Choose and Join an Exchange
Thanks to the rising popularity of Dogecoin, almost every reputable exchange offers DOGE as an option. That’s a good thing in terms of choice, but too many options can paralyse the trader. To find the best exchange for your needs, take a look at variables like security, fees, and available trading pairs. You should also consider the PEN/USD exchange rate. It may be impossible to find an exchange that offers DOGE trading pairs with the Peruvian sol (PEN). However, pretty much every exchange offers U.S. dollars (USD) as a fiat option against DOGE since it’s the most popular global currency.
It’s also a good idea to only use exchanges that offer advanced security features and require KYC verification. Numerous crypto exchanges have experienced hacks, thefts, and scams over the past decade; it’s in your best interest to choose one that has strong built-in security features and complies with global financial regulators.
3. Choose Your Payment Methods
Crypto exchanges offer investors multiple payment methods for making deposits, including bank transfers, credit cards or debit cards, PayPal, Skrill, Payoneer, and more. Local bank transfers are generally the most affordable option in terms of fees, but you should factor in the PEN/USD exchange rate if your bank account currency is in Peruvian soles. Credit/debit cards are also a good universal option, but credit card fees can be substantial—especially for large DOGE purchases.
Another option is to use third-party payment services like PayPal, Payoneer, or Skrill. These services are convenient and affordable, but you still have to factor in the PEN-USD conversion fee if you’re transferring funds from a local bank account.
4. Place an Order to Buy DOGE
Placing an order to buy DOGE on an exchange is a straightforward process. Once you’ve created your account and deposited funds using one of the available payment methods, simply click on the DOGE/USD trading pair to place an order. Choose the amount you want to pay and click the “Buy” button. If you want your DOGE immediately at the current market price, then place a standard market order. Alternatively, if you’re not in a hurry and would rather wait for the best price, choose a limit order.
5. Safely Storing Your Dogecoin in a Wallet
While all exchanges have built-in wallets for storing purchased coins, it is considered good practice to transfer your assets off the platform and into a secure wallet for safe storage. This is an optional step that’s recommended for users who want to hold on to their DOGE as a long-term investment.
What if I want to Buy Dogecoin with Cash in my City in Peru?
It is possible to buy Dogecoin with cash in your city in Peru, but you have to be aware of the risks. For instance, there is no way to guarantee that the individual you give your money to will transfer the agreed amount of DOGE to your wallet address. It’s a better idea to use a regulated platform like a peer-to-peer exchange that has an escrow service to ensure you receive your DOGE coins.
Another option is to use cryptocurrency ATMs, but there are only three such ATMs in Lima, and they only offer Bitcoin. If you have the patience, then you could use those ATMs to buy BTC using cash and then trade the BTC for DOGE on an exchange platform.
The good news is that there are no laws limiting the distribution and trade of digital currency in Peru. The Congress of the Republic of Peru has toyed with passing crypto regulation as recently as October 2020, but nothing concrete came of it. At the time of writing, there is no regulation limiting the purchase of cryptocurrencies in Peru.
3 Tips to Buy Dogecoin
Now that we’ve covered everything you need to know before you buy Dogecoin, here are some tips you should keep in mind before you make your first purchase.
1. Choose the Right Time and Do Your Own Research
As with any investment, it’s a good idea to perform some research to learn more about Dogecoin, how it works, and its future potential. Don’t let sensational bull runs sway your decision to buy or sell Dogecoin. A quick look at the historic price of DOGE can help you identify patterns and determine the best time and price to open or close a position.
2. Comparing Costs to Buy Dogecoin
Brokers and exchanges have fees and commissions associated with buying Dogecoin. It’s a good idea to compare the costs between different platforms to make sure you get the best deal. Costs to look out for include deposit fees, trading fees, and withdrawal fees. While they may seem small at a glance, these fees may end up eating into your profits in the long run.
3. Safety and Security
The final consideration is security. Stick to platforms that have basic security features like SSL certificates, private key encryption, and two-factor authentication. For added security, set up a secure wallet for storing your Dogecoin in an offline environment. This is especially important if you’re planning to store your DOGE as a long-term investment.
Can I Buy Dogecoin with Peruvian Soles?
Brokers and exchanges typically accept popular fiat currencies like U.S. dollars, British pounds, and Euros. You’ll be hard-pressed to find an exchange that takes payments in Peruvian soles. Your best bet is to use the available payment methods to convert your soles into USD at the bank exchange rate of the day. Be aware that some payment methods may charge an additional commission fee, but it’s usually a tiny percentage of the deposit amount.
Other Ways to Buy Dogecoin in Peru?
Broker and exchange platforms aren’t the only ways to obtain Dogecoin in Peru. Other options include crypto ATMs, Dogecoin mining, and peer-to-peer exchanges.
Use a Dogecoin ATM to Buy DOGE: As mentioned in the previous section, there are only three cryptocurrency ATMs in Peru, and they only offer Bitcoin. However, it’s possible to use these ATMs to buy BTC using Peruvian soles and then trade the BTC for DOGE on exchange and broker platforms. Crypto-to-crypto transfers are more involved than direct purchases, but they’re a great way to anonymously obtain DOGE.
Other Ways to Get Dogecoin: Another alternative is to mine Dogecoin by joining a mining pool. Dogecoin miners verify transactions and secure the blockchain. In exchange, they earn block rewards. The Dogecoin network’s block reward is 10,000 DOGE, which is substantially higher than the 6.25 BTC reward Bitcoin miners receive. Even with its success in 2021, mining Dogecoin is still less competitive than mining Bitcoin. Dogecoin uses a proof-of-work hashing algorithm called Scrypt, which uses significantly less energy than the SHA-256 algorithm used by the Bitcoin network.
The final option to obtain Dogecoin is using P2P exchange platforms. It might be tough to find a P2P exchange that lists DOGE purchases in Peru specifically. However, it is possible to use these platforms to obtain Bitcoin and other popular cryptocurrencies using Peruvian soles. Once you obtain your BTC, you can trade it for DOGE on exchange or broker platforms.
It’s hard to say if Dogecoin will maintain the momentum it gained in 2021 and continue to shoot to the moon. It’s certainly come a long way since its launch in 2013 as a meme coin with no real purpose, but it’s still a high-risk investment. As with any cryptocurrency, consider how much risk you can tolerate before you invest.
Frequently Asked Questions
Yes. The Peruvian government has not passed any crypto regulation, but that could change in the near future as cryptocurrency use comes under more scrutiny.
Yes. Just because the Peruvian government doesn’t regulate crypto transactions doesn’t mean you shouldn’t comply with KYC verification. Reputable crypto platforms require KYC to lower the risk of fraud and theft for all users.
Cryptocurrency brokers and exchanges are the safest and most secure options for buying DOGE online in Peru.
There are three crypto ATMs in Peru, but they’re unfortunately all located in Lima. Visit CoinATMRadar.com to see their exact locations in the city.
No. Secure software wallets that support DOGE are available online for free. They’re perfectly fine for storing small amounts of crypto. If you’re holding large amounts of DOGE, then consider purchasing a hardware wallet like the Ledger Nano S or Trezor One for better security.