Dogecoin, although has declined from its meteoric rise in early 2021, is still one of the hottest coins in existence. In part driven by celebrity endorsements and pipe dreams, Dogecoin still maintains its spot in the top ten largest cryptocurrencies by market cap.
With such unbelievable returns, many are asking themselves what Dogecoin is, and where they can buy the hot cryptocurrency.
In this article, we will review what Dogecoin is and how to buy it on Webull.
Webull is an advanced trading platform that offers investors free trades on stocks, ETFs, and retirement accounts. Launched in 2018, the trading platform has captured the interest of many with its numerous research tools and advanced charting.
Many users choose Webull over Robinhood if they want an in-depth trading experience. Those who consider themselves intermediate or advanced investors find themselves at home with Webull.
In November of 2020, Webull announced that it would begin offering cryptocurrencies on the platform. At the time, the platform featured 4 cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). As of today, Webull offers 9 cryptocurrencies including Dogecoin (DOGE).
Buying cryptocurrency on Webull is a simple process. Users who invest in stocks on Webull will find that trading crypto on the platform is largely the same process. We will provide detailed step-by-step instructions to buying Dogecoin on Webull later in the article.
For an in-depth view of Webull, check out this Webull Crypto Review.
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Cryptocurrency, or crypto, is a digital form of currency. Like the US dollar or Chinese Yuan, crypto is a currency that can be used to buy goods and services from those who accept crypto. However, the key difference between cryptocurrency and physical currency is the lack of a central authority.
Crypto is not held by a central bank, nor is it distributed or regulated by a government. Crypto is made possible through blockchain technology and is managed across many computers on an online ledger. This form of currency management is appealing to many because it is nearly impossible to counterfeit.
Some compare crypto to an arcade token. You can exchange physical money for coins or tokens and use them for a variety of games. Today, companies are starting to accept various forms of cryptocurrency as payment for their goods and services.
The value of a coin moves up and down due to spectator beliefs and scarcity of the currency. Unlike a company that produces a product or offers a service, there is no inherent value of a cryptocurrency. This fact contributes evidence to the Greater Fool Theory.
The Greater Fool Theory is an economic principle that states money can be made when buying an asset and then selling for a profit to a 'greater fool'. Since cryptocurrencies have no intrinsic value, the only reason they rise in price is because some are willing to pay more for the same asset.
As long as individuals value cryptocurrencies, the prices will continuously rise.
Dogecoin was created in 2013 as a joke. It was named after an internet meme that featured a Shiba Inu dog. The popular dog also serves as the mascot and can be seen on Dogecoin's symbol, which is a gold coin.
Dogecoin has garnered attention due to consistent mentions in the media. Earlier this year, Elon Musk began highlighting Dogecoin in various tweets which caused many to take notice of the coin. Musk's tweets about Dogecoin are often humorous and have received millions of views, indirectly causing the price of the coin to rise. Other high-profile individuals such as Mark Cuban and Snoop Dog have also commented on Dogecoin.
As proven by other stocks such as Gamestop and AMC, extreme hype on the internet can be highly influential among retail investors. This is certainly the case with Dogecoin.
Buying Dogecoin on Webull follows a simple process.
Upon clicking on Crypto Trading, users have to agree to a new set of terms and conditions by signing an agreement with an e-signature. After submitting your signature, your Webull crypto account will be reviewed. The approval process typically takes less than one business day.
Though the additional approval may seem like an unnecessary step, it is important to protect investors by providing information about the risks of trading.
Once your account is approved for crypto trading, follow these steps:
When you click "Trade" on a cryptocurrency in Webull's platform, you will receive the following message:
So what does this mean? Webull Crypto and Webull Financial LLC are two separate entities. Though investors can trade both crypto and stocks on the same app, it is important to note that the assets are not held in the same place.
Because cryptocurrency is not regulated by an exchange, the assets are not protected in the same way stocks and ETFs are. Stocks and other investments are FDIC and SIPC insured, while cryptocurrencies are not. Before trading crypto on Webull, you will have to acknowledge this fact by clicking "Continue."
Webull offers both fractional shares of stocks as well as fractional coins. Just like fractional shares of stocks, this allows investors to enter a dollar amount rather than a set number of coins.
This is a great feature for investors looking to get started with cryptocurrency. It does not mean that the money invested is less at risk, but it does allow greater flexibility for investors. With Dogecoin, fractional coins may not be as significant due to the already low price of the asset. But with Bitcoin currently trading for tens of thousands of dollars per coin, you could get started with as little as $1.
Selling Dogecoin on Webull is accomplished in a similar process. While in the app and after selecting Dogecoin from your portfolio, you will simply select "Sell." Once again, you will select your market type and enter the dollar amount you wish to sell.
Buying and selling cryptocurrency is much faster than typical trades. With crypto trading, there are no physical processes which means your funds settle instantly. Unlike selling stocks or other assets, when you sell crypto, your money will appear in your account immediately.
Cryptocurrencies can be traded 24/7 as they are not regulated by any authority. This is not the same with stocks and ETFs because they are brokered by exchanges with set hours of operation.
Webull does not allow users to transfer cryptocurrency from one platform to another. In order to move your crypto from Webull to another platform, you will need to sell your cryptocurrency and buy the assets on another platform. Be advised, transferring money out of Webull can take 1-5 business days.
Without the ability to transfer crypto in or out of Webull, you will not be able to store your crypto in an offline wallet.
Because cryptocurrency is not regulated, and thus not protected the way stocks are, investors want to ensure their cryptocurrency is held secure. For many, this means using a cold wallet, or a storage device like a thumb drive that is not connected to the internet.
This is one of the reasons why Coinbase is trusted among investors. They do allow users to transfer coins into cold storage.
Webull has created an excellent resource for investors. With various research tools, advanced charting, and user customization, Webull has become widely popular since its launch in 2018.
With Webull's recent addition of cryptocurrency last November, investors can now hold many of their investments in the same trading app.
Because Dogecoin is not offered on many trading apps, investors may find themselves searching for a platform that does offer it.
For those interested in Dogecoin, Webull may be the platform for you!
Dogecoin comes with a certain level of volatility. In general, cryptocurrencies experience high volatility due to its nature. Cryptocurrency has no inherent value like a company that produces a good or service. Likewise, cryptocurrencies such as Dogecoin can experience sudden increases and decreases in their price.
Invest with caution and do your own research before diving in!