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How to Buy Dogecoin in the UK in 2021

Dogecoin United Kingdom
Author: Saad Ullah

An attempt at humour back in 2013, Dogecoin (DOGE) has become a viral sensation in the last few years and has witnessed huge jumps in price and has caught the attention of many prominent people, including Tesla’s Elon Musk. It was launched as a meme coin but has slowly gained mainstream investor attention and acceptance. Dogecoin’s popularity extends well into the United Kingdom, with major crypto trade and exchange platforms supporting it. UK residents can easily buy Dogecoin through the wide network of crypto ATMs.

Here is a detailed guide on how to buy Dogecoin in the UK.

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Why Trade Dogecoin instead of Buy Dogecoin?

1

No wallet needed:

While trading, you buy and sell contracts and not the actual DOGE coins. This means you don’t need dedicated wallets since you don’t hold digital coins.

2

Use usual payment methods:

Most brokers support traditional payment methods such as credit/debit cards and direct bank transfers.

3

Easy & fast:

With no Dogecoin bought or sold, trading can be as quick as just a few clicks. Many brokers also let traders use bots to achieve even faster trading speeds.

Buy Dogecoin

How to Buy Dogecoin With the Best Broker in the UK

Several crypto brokers offer Dogecoin trading in the UK and you can buy and sell derivative contracts on these. While each broker will vary in how you sign up and operate your trading account, all have a few steps in common.

1. Register with a Reputable Broker

It is highly advisable to only choose a regulated broker with a good reputation. A law-abiding and reputed broker will always ensure good security on the platform and offer you better consumer protection.

Registering on a broker will typically involve the platform requiring you to create a username and a password and may require additional information for secure communication such as name, email address and a contact number.

2. Verify your Identity (KYC Process)

Financial laws require any monetary service provider to have specific information on their users. This is to counter illegal money movement and other financial frauds. A regulated broker will require you to go through a Know Your Customer (KYC) checklist.

This will include verification of your identification (any government-issued ID such as driver’s licence or passport), proof of where you currently reside (rental agreement or a utility bill in your name) and proof of source of income for large volume traders.

KYC is a part of regulations and as such, using an unregulated broker to avoid these will only put your investment and money at risk.

3. Deposit Funds with your Preferred Payment Method

To begin trading, you will need to fund your brokerage account first. Since Dogecoin derivatives are bought and sold with fiat, your broker will definitely have fiat funding options. Usually, a trader will be able to deposit money in two distinct ways.

The most common is through a bank transfer. A secure process, this can sometimes take a couple of days, depending on which network is used. On the other hand, a faster option of using credit or debit cards may also be offered. Some brokers may also support third party payment processors. 

4. Open a Position to Long/Short Dogecoin

You can start Dogecoin trading after funding your account. You will typically see two different terminologies in trading, namely long and short positions. It’s a long position if you buy a contract in hopes of the Dogecoin price rising. Since the contracts only need Dogecoin price input, brokers also offer a short position that will give profits on Dogecoin price falling. The profit earned in the end is the difference between the DOGE price at the opening and closing of the positions.

eToro is a good example of a broker that offers both long and short positions. If you take a long position, it normally buys Dogecoin (without leverage), while a short position can be placed through CFDs. CFDs allow you to use leverage. 

A broker will give you a range of order types you can use to open Dogecoin positions. These normally include three types, a market, limit and stop-limit order. A market order will allow you to open a position with the current market price of DOGE, while a limit order will let you tell the broker what your preferred price should be. A stop-limit will allow you to decide what DOGE price should be in the market for your limit order to be placed.

Other order types may be offered, such as trail, iceberg and fill or kill. Study each one to know how these can help you in opening the perfect long or short position.

5. Close your position

You can cash out your profits by closing your position. When your profit level has been achieved, you can simply use the market order to exit. In case you are not sure if you will be available in front of your screen due to any reason, you can automate the process with any of the other orders.

Of course, Dogecoin trading is a highly dynamic situation and you may want to change your closing decision. In that case, you can cancel your open orders and either place new ones or manually close the trade.

How to Buy Dogecoin With the Best Exchange in the UK

Should you want to buy DOGE and hold the crypto asset, you should use a Dogecoin exchange rather than a broker. Several crypto exchanges offer Dogecoin buying/selling for UK residents along with possession of the coins. Use the following steps to buy Dogecoin.

1. Set up a Wallet

To possess Dogecoin, you need a DOGE compatible wallet. There are many cryptocurrency wallets and you will need to decide which one suits your needs. You can go for any of the three basic types described below.

  • Web Wallets: Accessible through any browser, all you need is an internet connection to send and receive your DOGE. Your Dogecoin exchange will also usually give you a free version of their web wallet.
  • Software Wallets: A DOGE wallet packaged into an app, you can install it on your mobile or computer. It offers good mobility and ease of use.
  • Hardware Wallets: Flash drive like devices, hardware wallets offer extreme security as these store the coins offline. The downside is the high price tag.

2. Choose and Join an Exchange

While deciding on which cryptocurrency exchange to use, always select a regulated one because it has to comply with different laws governing its services that include consumer rights and asset protection. At the same  time, don’t forget to look up the exchange's past performances and reputation. Keep a close eye on the fees and other charges to have an idea of how much exactly you will end up paying for DOGE.

Once you have made your decision, sign up and complete any KYC requirements so you are able to purchase Dogecoin.

3. Choose Your Payment Methods

A common fiat funding method is through bank transfers. This is a safe option but on the downside, this method can be a bit slow and take roughly a couple of days so you will have to sit tight until the platform acknowledges the deposit.

If you want instant funding, see if the platform supports debit/credit cards. Visa and Mastercard are pretty common methods on most platforms and some even support PayPal. The high speed of transfer might come with a cost in the form of an extra charge so be sure to factor this in.

4. Place an Order to Buy DOGE

Simply select your preferred Dogecoin pair (DOGE to fiat for funding through traditional money or DOGE to crypto if depositing digital coins. You can now use any of the available buy orders (market, limit, stop limit etc).

You will gain possession of your Dogecoin when your placed orders are executed. The coins will be automatically transferred to your exchange wallet. 

5. Safely Storing Your Dogecoin in a Wallet

While you will have access to an exchange wallet to store your bought DOGE, it will be safer to store these in a private wallet. This is especially a better option if you are not going to sell and buy frequently or intend to hold a large amount. To transfer DOGE, click on the withdraw tab and enter your wallet address. 

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

While using cash can be an easy and quick option to buy Dogecoin, it has its own risk and potential dangers. The chances of being scammed are high. Using reputed trading platforms reduces this risk.

If you still want to use cash, you can always use Dogecoin ATMs for a quick buying experience. There are 11 such machines placed in three cities of the UK, namely London (6), Cardiff (2) and Birmingham (3). If you reside near any of the 193 crypto ATMs in the UK that doesn’t offer Dogecoin, you can always buy Bitcoin and use it to fund your exchange account and then use a DOGE/BTC pair to buy Dogecoin.

Although cryptocurrencies are not illegal within the UK, the Financial Conduct Authority (FCA) had introduced tougher regulations for platforms offering buying services, so make sure any platform you use is licenced to operate in the UK.

3 Tips to Buy Dogecoin

While you can learn how to buy Dogecoin, there is more to it than just placing an order. There are several factors that can influence your decision and we have listed the three most common ones.

1. Choose the Right Time and Do Your Own Research

As a cryptocurrency, Dogecoin is a volatile asset and its price is constantly fluctuating. One little news from the far east can have the same impact as a local one and therefore, knowing when to buy is the game. You should do a complete study of the past performances, current news and potential ones to get an idea of what is the perfect time to buy Dogecoin. 

2. Comparing Costs to Buy Dogecoin

Every platform has a different fee structure. This is not only limited to buying and selling orders but deposits and withdrawals too. Comparing all the costs involved will let you know which is the best platform for you. A very economical looking exchange with low transaction fees might charge you heavily in terms of withdrawals, eating into your profits. 

3. Safety and Security

Never compromise on security. Exchanges are a hot target by hackers and scammers due to the large amount of cryptocurrencies being held there. Always seek out the type of securities being used by your preferred platform. Many exchanges offer Two Factor Authentication (2FA) and withdrawal addresses whitelisting. Enabling withdrawal address whitelisting means that the exchange will only send your DOGE or other cryptos to wallet addresses that you have approved.

Can I Buy Dogecoin with the British Pound?

Major platforms support the three largest fiats and GBP is one of these. Even if your desired platform doesn’t, you can always use your bank card as the final payment is converted into the base currency of the exchange.

Currently there are 11 Dogecoin ATMs in the UK. Six are located in London, two in Cardiff and three in Birmingham. 

Other Ways to Buy Dogecoin in the UK?

  • Use a Dogecoin ATM to Buy DOGE: There are eleven Dogecoin ATMs spread in three different cities of London (6), Birmingham (3) and Cardiff (2). You can use an ATM to directly buy DOGE. 
  • Other Ways to Get Dogecoin: Using a different mining algorithm that resists the super-powered ASIC machines, Dogecoin, can be mined using a powerful computer. You can mine on your own or join many mining pools and cloud mining operations. There are P2P platforms too that let you buy directly from different sellers. You can also buy DOGE and put it in a staking pool to earn pool rewards to potentially increase your DOGE holdings.

The pioneer of meme coins, Dogecoin’s existence as a joke has changed and it is now a serious coin with a lot of following. With a market capitalisation of over $20 Billion, it is now in the top ten list of cryptocurrencies by market capitalisation.

Frequently Asked Questions

  1. No. If your private wallet supports DOGE, you don’t need another wallet.

  2. Apart from a market order which is executed immediately, all other orders must fulfil set conditions. Try adjusting the requested Dogecoin price to a value near the market rate.

  3. Crypto transactions can occasionally take a longer time. If the seller has sent it in your P2P platform wallet, you should see it immediately. Do not release payment unless you see the Dogecoin in your wallet.

  4. Some exchanges have a waiting period as a safety precaution before you can withdraw bought assets, typically ranging from 24 to 48 hours.

  5. HMRC does have a capital gains tax on cryptocurrencies as it treats them as digital assets. Contacting a tax expert will give you more clarity on it.

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