How to buy Dogecoin in NZ
DOGE has defied the odds to become one of the most popular coins in the crypto world.
The breakdown
- Dogecoin can be purchased from both international and NZ crypto exchanges and retailers.
- Backed by Elon Musk and other celebrities, Dogecoin has become one of the most well-known cryptocurrencies in the world.
- Like most cryptocurrencies, Dogecoin is very volatile and potential investors should think carefully before buying in.
Author: Kevin McHugh, Head of Publishing at Banked.
In our guide to Dogecoin, we’ll be looking at the origins, the mechanisms, and the story of Dogecoin to date. We’ll also define its pros and cons as an investment opportunity, and provide a step-by-step guide to buying Dogecoin in New Zealand.
What is Dogecoin?
Like Bitcoin, Dogecoin is an open-source, peer-to-peer cryptocurrency that gives users a fully anonymous and secure way to conduct transactions without the need for third parties such as banks.
As with other cryptocurrencies, Dogecoin is based on blockchain technology. A blockchain is a distributed and secure digital ledger used to store all transactions of a particular cryptocurrency and does not require a centralized authority.
Learn more about how cryptocurrencies work.
How did Dogecoin start?
Dogecoin was created in December 2013 by IBM engineer Billy Markus and Adobe engineer Jackson Palmer.
Based on the popular Doge meme with a picture of a Shiba Inu, it was created as a joke, poking fun at leading cryptocurrencies such as Bitcoin. After that, Dogecoin became a hit and one of the most widely traded cryptocurrencies.
The rise of Dogecoin
From a modest beginning, Dogecoin became one of the most popular cryptocurrencies thanks in part to its image and perceived accessibility. In what can seem like a highly complicated area to the uninformed, Dogecoin was viewed as more fun and less serious than the crypto alternatives and perhaps less intimidating as a result.
The founder of SpaceX, Elon Musk, became a prominent follower of Dogecoin after he frequented Twitter to post about a faux ‘Dogue’ magazine cover, leading to a rise in its price. Several celebrities followed suit, including Snoop Dogg and Gene Simmons, who tweeted and promoted Dogecoin on social media.
Following Elon Musk’s tweet, ‘Doge barking at the moon’, Dogecoin’s value spiked in 2021. However, like many cryptocurrencies, the value of Dogecoin dropped significantly since.
A step-by-step guide to buying Dogecoin
Here’s how to invest in DOGE.
1. Determine your investment amount
Even though there are viral stories of people who invested trivial amounts in DOGE and became millionaires, these are certainly outliers and the risk of losing money by investing in the coin is high. Like any other cryptocurrency, Dogecoin is volatile, making it a precarious investment.
Consider your risk tolerance, investment portfolio, and overall financial situation when deciding how much to invest. It’s generally recommended that you don’t invest more than you’re willing to lose when it comes to cryptocurrencies.
2. Choose a cryptocurrency exchange
To buy Dogecoin, you will need to find a cryptocurrency exchange or retailer that has the coin available.
There are a number of exchanges and retailers available to Kiwis. These include international options like Coinbase, Binance, and Crypto.com. There are also more local New Zealand and Australian exchanges, such as Easy Crypto, Swyftx, and Independent Reserve.
Generally speaking, international exchanges tend to perform better regarding choice, both in terms of trading options and the range of available coins. However, as Dogecoin is one of the most popular currencies available, you will be able to purchase it through any exchange you come across.
More local exchanges typically benefit from more accessible deposit options (including being able to deposit NZD and withdraw to New Zealand bank accounts) and local support may appeal to those new to crypto investing.
You can compare cryptocurrency exchanges that offer Dogecoin in our table below, or learn more about the best crypto exchanges in our guide.
| Exchange/retailer | Available crypto | Fiat currencies | Deposit options | Key fees | Promotions | Learn more |
|---|---|---|---|---|---|---|
Binance
|
350+ | 18 (including NZD) | Credit card |
- Trading fee: Maker: 0.02-0.1%
Taker: 0.04-0.1% - Deposit fee: 3.5%-5% (minimum $10) |
None currently | Binance review |
Easy Crypto
|
155 | NZD | Bank transfer, credit card, POLi | - All fees included in the buy rate | None currently | |
Swyftx
|
312+ | 2 (including NZD) | Bank transfer, credit card, POLi |
- Trading fee: 0.6% (high-volume trading discount) - Deposit fee: $0 |
None currently | |
Independent Reserve
|
27 | 4 (including NZD) | Credit card |
- Trading fee: Up to to 0.5% - Deposit fee: $15 (no fee for deposits over $5,000) |
None currently | |
Crypto.com
|
250+ | 20+ (including NZD) | Credit card |
- Trading fee: Maker: 0.04-0.4%
Taker: 0.1-0.2% - Deposit fee: $0 |
None currently |
3. Create an account
Next, you will have to create an account with your chosen exchange, including going through an identity verification process.
Verifying your identity can sometimes make signing up for a crypto account take a little longer than you might expect, but in most cases it will take less than around 5 to 10 minutes.
Necessary steps will vary from platform to platform, but they typically include providing:
- your mobile phone number
- a letter with your address on it, such as a utility bill
- photo ID, such as your driver’s licence or passport
- a selfie (to verify a match with your photo ID).
You’ll be ready to purchase your Dogecoin as soon as you’ve completed setting up your account.
4. Buy your Dogecoin
Once your account has been created and you’ve deposited funds into your account, you’ll be ready to purchase your cryptocurrency. Depending on the exchange, it should be easy to find Dogecoin among the available crypto options. Remember that Dogecoin’s ticker symbol is DOGE.
Then, select your trade type and enter your investment amount or the number of Dogecoins you want to purchase.
In many cases, your purchase will execute immediately, but it may take a little time depending on the exchange and the trade type you have selected.
5. Store your Dogecoin
The exchange through which you purchased your crypto may have an online wallet function, but that’s not true for all platforms (such as Easy Crypto). However, even if you do have the option to store your crypto with the exchange, it’s generally considered safer to transfer it to your own digital wallet.
There are different types of wallets. ‘Hot wallets’ are essentially software programs that securely manage the details required to access your crypto on the blockchain. These are typically easy to use and can be a good option for smaller amounts.
‘Cold wallets’ are considered more secure, largely because they disconnected from the internet (unlike a hot wallet). However, they also come at a cost (the popular hardware wallet Ledger Nano S costs approximately $140) and they are not quite as convenient as many online hot wallets.
Check out our guide to learn more about securely storing cryptocurrencies.
Is Dogecoin the same as Shiba Inu?
Shiba Inu and Dogecoin are both dog-themed cryptocurrencies that might have you confused — but they are different coins. For both, the mascot is a Japanese breed Shiba Inu, and they both cost just a fraction of a dollar.
Both are so-called ‘meme coins’ — cryptocurrencies that have their roots in meme culture and online jokes on forums such as Reddit. Like the wider crypto market, both also saw huge surges in value in 2021, only to plummet back to a pre-surge valuation not long after.
The ticker symbol for Shiba Inu is SHIB, while the symbol for Dogecoin is DOGE.
Why do people invest in Dogecoin?
- The Elon Musk factor: The entrepreneur and Tesla company owner has been an influential proponent of Dogecoin. Each time Elon Musk has publicly backed the cryptocurrency, its value has increased, sometimes dramatically.
- Opportunities for diversification: Like most cryptocurrencies, Dogecoin represents a new area of investment beyond share trading, term deposits, property ownership, and so on.
The downsides of investing in Dogecoin
- Infinite supply: One disadvantage of Dogecoin is that there is no limit to the amount that can exist, unlike some other cryptocurrencies such as Bitcoin. This means it does not benefit from the same scarcity factor that can drive up the value of some investments.
- It’s volatile: We have already witnessed a huge surge in Dogecoin’s value, followed by an equally large drop. Crypto investing in general is very risky and interested parties should never invest more than they believe they can lose without significant hardship.
- Technical limitations: Unlike Ethereum, for example, Dogecoin is not especially innovative and it’s not updated as often as many of its more progressive peers. It may be an investment opportunity for some but Dogecoin’s underlying technology is not especially impressive.
