Are you a cryptocurrency expert, newbie, or do you just hold a couple of coins, but you don’t know anything about it? Have you heard of Dogecoin? We’re sure you’ve seen it pop up on Twitter a couple of times. Do you want to know what type of coin it is and how to buy it here in Australia? Well, you picked the right article!
What Is Cryptocurrency?
Cryptocurrency is no longer a new word in all sectors of the economy, as it is now being used as a medium of exchange and a store of value for investment reasons. Cryptocurrency is a digital currency created to be used as a means of an exchange over the internet. Since the introduction of Bitcoin in 2009, a lot of other alternative coins have been introduced too. Now, there are over 2000 coins registered under the market cap with varying prices.
As stated earlier, cryptocurrency is a digital currency designed to be used as a means of exchange online. One question many people ask before investing in cryptocurrencies is; is cryptocurrency taxed? Like stocks, cryptocurrencies, including Dogecoin, are taxed. The UK law collects tax on the profit made from crypto assets held as a personal investment.
A cryptocurrency can either be stable or volatile. Stable coins carry a consistent value and are an ideal medium of exchange in the crypto market. Examples of stablecoins are USDT, TUSD, HUSD, and so on. Volatile coins, on the other hand, are fluctuating in nature. As a result, their prices can rise or fall at any given time. Examples of volatile coins are Bitcoin, Ethereum, Tron, Doge, and others. In this article, we will be focusing mainly on Dogecoin and how it can be traded.
What Is Dogecoin? Meaning And History
Like every other cryptocurrency, doge is a decentralized, highly volatile, blockchain-based, and unregulated Digital currency. Dogecoin initially was a joke created by Jackson Palmer and Billy Markus to mock the dramatic fluctuation in the crypto market. The coin was named after a Shiba Inu, the famous internet meme dog, “doge.” The joke soon turned into a serious coin that made big waves in the exchange market.
Dogecoin was initially released in 2013 but wasn’t that popular. Due to its volatile nature, the coin has had its highs and lows. However, it recently became recognized when Elon Musk referred to it a few times more than usual. Elon’s influential status caused a significant surge in the value of Dogecoin, and the circulating supply increased to 129.5 billion as of May 9, 2021.
How To Buy Doge In Australia
The cryptocurrency was legalized in Australia in 2017. It has since then been allowed as a means of exchange between traders. There are, however, strict rules that guide the operations of a cryptocurrency exchange in Australia. So before you buy Dogecoin, you should know the rules attached to it.
Cryptocurrencies are subject to Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act of 2006 (AML/CTF 2006). First, before an exchange company can be recognized, they have to register with AUSTRAC. According to AUSTRAC, it was a way to prevent money laundering and allow them to keep a tab on any suspicious exchanges. While some countries allow the traders to trade anonymously, Australian law is against the anonymity of traders and requires that all exchangers’ identities be known, verified, and registered.
To protect the rights of consumers, the law mandates exchanges to provide users with relevant information, including the charges, structures, and guidelines to perform exchanges.
All the above laws apply to all cryptocurrency exchanges in Australia, including Dogecoin. Now that we are aware of the rules guiding the Dogecoin exchange, we can proceed to trade it.
Below are the steps to take to purchase the Dogecoin in Australia:
You could either buy Dogecoin from a registered exchange company or do peer-to-peer (P2P). Buying from a registered exchange company is safer than peer-to-peer trading. This method of buying saves you the stress of searching for a trusted seller and allows you to trade coins in simple steps.
To buy from a registered exchange company;
- Get a Dogecoin wallet. After choosing an exchange company, register on the platform to get a wallet. Note that not all exchange companies have Dogecoin listed. So, before you register with a crypto exchange company, ensure that they trade Crypto on such a platform.
- Make a deposit. You need funds to purchase Dogecoin or any Cryptocurrency. After registering with a verified Crypto exchange company, deposit some AUD into your fiat wallet. Some companies charge fees on deposits while it is entirely free on other platforms. So you might want to check out those kinds of platforms to be cost-effective.
- Make a purchase. After making your deposit, search for the option to buy the Dogecoin and purchase the number of coins you want.
The second step is the significant difference between the two modes of buying Dogecoin when trading peer to peer.
- Get a Dogecoin wallet. Because cryptocurrencies are digital currencies, you will always need a wallet to hold whatever coins you buy. Find a wallet that holds Dogecoin and register.
- Find a trusted seller. If this crypto exchange platform you have registered with allows peer-to-peer trading, you need to find a trusted seller first. And if you don’t want to use sellers on the platform but have friends or trusted sellers outside the platform who are willing to sell.
- Make a purchase. Once you have found your trusted seller, simply copy and paste your wallet address to them. That way, whoever you are buying from can transfer the Dogecoin to your account, and you can make payments.
Whichever method you choose, ensure you are careful not to fall prey to scammers and dishonest people.
Is Dogecoin Worth Buying?
This might as well mean you are asking if Crypto is worth buying in general. Well, Dogecoin, like all other coins, is volatile, which means it is subject to change at any given time. Buying any form of crypto is a risk people take. While some make a fortune out of it, some lose. While the volatility of the coins is what you should watch out for, you don’t have to change your mind about investing in them. All you have to do is understand the market trend to recognize when to hold and when to sell. The same rules apply for all cryptocurrency holders, sell when it is high, and buy when the coin is low.
Currently, the Dogecoin is about $0.20, and we can only predict whether or not it goes to the moon or busts. The uncertainty might just be the reason to buy Doge coins and hold. What if it rises? The best thing to do is to invest with the amount you can let go of, and if you are a big risk-taker, you can buy as much as you can manage and hold.
Based on records, Doge has pumped over 2000% three times since 2016. If you want to measure the risk you’re taking when you buy; you should consider what the market says about the coin. People love Doge because it is a fun coin. There’s the possibility that it leaps again now, tomorrow, or much later.
What is Dogecoin?
Answer: Dogecoin is a digital currency that was named after a mascot called “doge.” The coin started as a joke, but later graduated into a cryptocurrency used as a medium of exchange. It was created by Billy Markus and Jackson Palmer, who were software developers at the creation time.
What is Dogecoin worth now?
Answer: As of August 2021, a Dogecoin is worth $0.20.
Will the price of Dogecoin rise?
Answer: Who knows? Dogecoin, like every cryptocurrency, is a volatile coin. So there is the possibility that the price changes, whether it be an increase or a decrease.
What can I use Dogecoin for?
Answer: Dogecoin can be used as a medium of exchange. You can purchase items from online stores with Doge coins and also receive payment in that form.
How can I buy Doge coins?
Answer: You can either buy from online brokers or trade peer to peer. Online brokers can be registered exchange companies that trade Cryptocurrencies. Once you have a wallet that can hold Dogecoin, find a trusted buyer, copy and paste your Dogecoin wallet address to receive your token and make payment.
Is Dogecoin a shit coin?
Answer: Shit coins are cryptocurrencies that have no unique features or utility. Since Dogecoin has no special features and is only used as a medium of exchange, it can be classified as a shit coin.
In conclusion, when you follow the dramatic rise and fall in the value of the Dogecoin since 2013, you’d probably be skeptical on what position to take right now. Therefore, we encourage you to consult with an expert before you buy your Dogecoin. This ensures that you do not fall victim to fraudsters or be at a disadvantage due to a lack of adequate cryptocurrency knowledge. However, above the threats of crash and liquidation, look at the bigger picture and take the stance of a crypto investor. To buy or not? That is up to you, but remember that this is Crypto, and anything can happen.
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