How To Buy Dogecoin In India (May 2024)

Every dog has its day, and in the world of cryptocurrencies the luckiest dog recently has been Dogecoin.

The price of Dogecoin soared after Elon Musk, replaced Twitter’s blue bird icon on the website with an image of a Shibu Inu dog, which is used to represent the cryptocurrency. Following a change to the microblogging website’s logo, Musk posted a meme about his action on his Twitter account that has more than 133 million followers.

If you’re looking to join in the “fun” by buying Dogecoin, here’s what you need to know.

Where To Buy Dogecoin?

Investors can purchase Dogecoin on any cryptocurrency exchange, ensuring it is registered with the Financial Intelligence Unit India. Select a platform with a user-friendly interface and extensive support for Dogecoin trading pairs. Additionally, look out for considerate trading fees.

Here are a few cryptocurrency exchanges where you can buy Dogecoin in India:

CoinDCX: It has around 1.4 crore registered users and is considered to be one of the safest and most transparent exchanges in India. CoinDCX has up to 500 crypto assets and is known to offer notable liquidity.

CoinSwitch: It is among the leading crypto exchanges in India with more than 2 crore registered users who can trade in nearly 100 cryptocurrencies available. It is a highly recommended platform for beginners, and you can begin your investment from a minimum amount of INR 100 in Dogecoin.

WazirX: It is among the most trusted and fastest-growing platforms for trading cryptocurrencies in India. WazirX has approximately 15 million users in the country and has more than 300 cryptocurrencies as options to invest in.

Mudrex: It has picked up among the ranks of the top crypto exchanges available in India owing to FIU’s directives. It has more than 10 lakh users and allows users to invest in more than 350 cryptocurrencies.

All the mentioned exchanges are registered with FIU-India. Read why the FIU-India registration is important. Also check out the Best Crypto Exchange In India For 2024.

How To Buy Dogecoin In 5 Steps

1. Consider How Much You Want to Invest in Dogecoin

While there are viral stories of people who invested trivial amounts in DOGE but are now millionaires, invest with caution. Cryptocurrencies are very risky investments, and Dogecoin is uniquely volatile because it has an unlimited supply.

Here’s how that works: For Dogecoin’s price to increase or even remain steady, investors have to buy more coins continually. Otherwise, the supply of DOGE rises rapidly and diminishes the value of all the coins already in circulation (think inflation on steroids). In fact, the limit on the number of Dogecoins was expressly removed by one of its creators to discourage people holding onto it long term. That’s in stark contrast to other major cryptocurrencies like Bitcoin, which have caps on how many coins are issued. This creates scarcity, which helps coins retain their value.

When deciding how much to invest, consider your overall financial situation, investment portfolio and risk tolerance. Experts don’t recommend you invest more than you’re willing to lose with cryptocurrencies in general.

2. Decide on a Cryptocurrency Exchange

To purchase Dogecoin, you’ll need to open an account with a cryptocurrency exchange, where buyers and sellers meet to exchange cryptocurrency for dollars. Popular exchanges include CoinDCX, WazirX and  Unocoin, all of which offer a simple, easy-to-use advanced trader platform with lower fees.

An important note: While Dogecoin has become much more popular recently, it is not universally available on all crypto exchanges. Make sure any exchange you’re considering has DOGE available for purchase if you wish to buy it.

3. Select a Payment Option

Before you can begin trading cryptocurrencies, you must deposit money in your exchange. In most cases, the exchanges will let you deposit money from a checking or savings account. Some accept wire transfers and net banking. 

Typically, you get instant access to a portion of the money of your deposit for trading. It takes one hour to up to 24 hours for a successful transaction into your crypto exchange wallet. 

4. Place Your Order for Dogecoin

Once your money is in your account, you can purchase Dogecoin. On the exchange’s trading or purchase platform, search for Dogecoin or enter its ticker symbol: DOGE. Then pick your trade type and input either the INR amount you want to invest or specify how many Dogecoins you want to buy.

Once you place the order, it should go through immediately. Like other cryptocurrencies, Dogecoin isn’t limited by trading hours; you can buy and sell Dogecoin 24 hours a day, seven days a week.

5. Consider Your Storage Options

When you buy Dogecoin, it’s by default kept in your exchange’s crypto wallet. Because these are generally connected to the internet, some investors prefer to withdraw the crypto they purchase from their exchange and store it in another wallet.

You can choose to store your Dogecoin in a hot wallet or a cold wallet outside of your exchange. Hot wallets are digital and connected to the internet whereas cold wallets are physical hardware that you can disconnect, making them much less susceptible to hacking. Cold wallets, however, are generally more expensive than hot wallets, and you also run a greater risk of being unable to access your crypto currency if you lose or forget the password necessary to get into your cold wallet.

How Much Is Dogecoin Worth?

As of March 26, 2024, Dogecoin is trading at $0.1853 with a market capitalization of $26.70 billion and 24 hours volume is at $3.08 billion. Its all-time high was three-years ago at $0.7376 and it is up by around 147.69% from the past year. The circulating supply is around 143.62 billion. 

According to CoinDCX, the forecast of DOGE indicates that it might reach targets of $0.15 and $0.2, backed by bullish momentum and potential increases in liquidity following the upcoming Bitcoin Halving. Conversely, in the event of a downturn, support could be found at $0.1, which was previously at a remarkable resistance level that has now shifted to support.

Are There Any Alternate Ways To Buy Dogecoin?

Another way to purchase Dogecoin involves utilizing peer-to-peer (P2P) marketplaces, where you can buy DOGE directly from other individuals rather than depending on a centralized exchange. These exchanges match buyers with sellers and provide a secure escrow system to facilitate transactions.

Alternatively, you can exchange other cryptocurrencies in your wallet for Dogecoin. For instance, if you possess BTC or ETH, you can swap them for DOGE on exchanges such as WazirX or CoinDCX. This approach may offer quicker and more cost-effective transactions compared to purchasing Dogecoin with fiat currency.

How to Sell Dogecoin

If you’d like to sell your Dogecoin, the process is very straightforward. You’ll go to your holdings on your crypto exchange platform and enter the amount you’d like to sell. Then your order will be processed.

If you have made a profit investing in Dogecoin, you will likely have to pay capital gains tax. Failure to pay taxes on your crypto gains can result in substantial issues, including expensive penalties. If you’re not sure how to report your Dogecoin profits, consult a tax professional.

Should I Buy Dogecoin?

While Dogecoin infamously started out as a joke, investors take it a lot more seriously now. However, it’s still a very risky investment. That’s why experts recommend investing no more than 3% to 10% of your portfolio in cryptocurrencies.

How much you ultimately decide to invest in Dogecoin should be guided by your risk tolerance and your current financial situation. For example, if you’re behind on your retirement savings and don’t have an emergency fund, you should invest less money in Dogecoin. If you’re financially stable, are on target to meet your retirement goals and have a large financial cushion in the bank, you may be willing to invest more of your portfolio in Dogecoin.

Unsure if buying Dogecoin is right for you? Find a financial planner near you to discuss your goals and investment options.