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How to Buy and Sell Dogecoin

Cryptocurrency is the new gold and represents a great chance for investors to boost their value. It is a very volatile market with high profit and loss margins, therefore, a good knowledge of best trading practices is very important.

Also, if there was a time in history to invest in Dogecoin, it is now. Prices are at an all-time highest and one of the easiest ways to make gains is to trade on price movements. However, this takes a lot of practice.

To get started with trading dogecoin, these are some salient steps to note:

Make up your mind on buying or trading

As a beginner, you can do one of two things: it is either you trade your own units of dogecoin or trade on any slight changes in the price. If you choose trading, it gives you the opportunity to speculate on the price but without taking ownership.

Once you own a unit of dogecoin, you have to pay for the full price of the asset. However, this is quite different for traders, who just have to put up a little part of their position size. With this, you take a more leveraged position on the price and gain more exposure than normally available for your capital. Also, trading is a much cheaper option because investors are not charged for accessing a currency.

Another reason to pick trading over investing is the numerous tax advantages you become entitled to. A trader is not required to pay capital gains on his/her profits unlike investing, where you pay for every profit earned. Ensure you use a tested and proven trading strategy though, to avoid losing all your investing amount.

Create an exchange account and wallet

You need an exchange medium to be able to buy and sell dogecoin. So, it is imperative that you create an exchange account, which also allows you to store your dogecoin units in a digital wallet. We have used Kraken for a long time without issue and unlike Robinhood, you can withdraw your Dogecoin. Make sure you set up your own Dogecoin wallet so you can move the coin back and forth from the exchange to your wallet.

If you are just interested in trading dogecoin, what is required is a brokerage account instead of directly accessing the exchange. It is the broker in charge of the account that is exposed to the market in your place. A brokerage account is way easier and faster to set up.

Choose your preferred currencies to buy and sell

It is totally impossible to trade all available cryptocurrencies, which are about 1,500 in number. But there are some major currencies to trade such as Bitcoin, Dogecoin, Cardano and Ethereum etc. There are so many choices so, it is best for you to pick currencies that your have good knowledge of and are comfortable trading or investing in. With time, you’ll become an expert.

Go with an effective trading strategy

Before starting your crypto venture, you must ensure that you possess an adequate understanding of the market. Prices change all the time however, with knowledge of technical and fundamental analysis methods, you can make speculations on how factors such as government regulations, the value of the dollar, statements from influential figures, and how to use indicators to make more accurate trades.

After deciding on your strategy, you must know your closing positions, which is the point where you exit a trade. Trading demands a lot of discipline because the market is very volatile. So, it is best to close your trade once your maximum loss has been hit to prevent losing your capital. Several trading accounts provide a demo account with a default balance that you can use in learning the ropes.

It is never too late to start trading Dogecoin. However, a solid foundation on the tips and tricks of the market is integral to minimizing the risks of exhausting your investment amount due to multiple, heavy losses.

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