How to Buy Dogecoin For Beginners

Overview

There are currently more than 4,000 different cryptocurrencies that are circulating in the cryptocurrency market in 2025, with more in development to serve purposes from being a store of value, paying for purchases, tipping content creators, and more.

Cryptocurrencies have been in various news headlines in news media over the years, and in modern times, they are attracting the attention of young investors who are seeking new, innovative ways to grow their wealth sustainably.

Despite the sheer number of cryptocurrencies available, Ethereum and Bitcoin are still two of the main cryptos that reached a fever pitch in 2025. However, Dogecoin is not exactly a new contender on the block, but it has been making headlines recently, making it worthy of further exploration and evaluation to determine why it is popular, and how it can be bought and sold in South Africa.

Cryptocurrencies

The Different Types of Cryptocurrencies

Bitcoin was the first digital asset that was created and launched in 2009, setting the standard for all cryptocurrencies that followed it. Bitcoin is the proverbial measuring stick for all other cryptocurrencies and like anything new, cryptocurrencies had a bad rep because of their connection to the “Dark Web”, which is a private internet browser used for illegal, criminal activity.

Fortunately, over the past few years, this stigma dissipated and Bitcoin amidst several other cryptos, has appreciated and is considered one of the best investment vehicles, a store of value, and a technological milestone that could change how money is viewed and used.

Bitcoin saw its first price spikes in 2017 when the price soared to over $20,000 (285,787 ZAR). In 2018, Bitcoin saw 75% of its value diminished and Bitcoin also experienced significant challenges during the Covid-19 pandemic because of mass uncertainty on a global level, with the price dipping as low as $4,000 (57,157 ZAR).

However, prices recovered rapidly, and Bitcoin saw prices rise to $60,000 (857,361 ZAR) in April, with the price decreasing and settling to $35,000 (500,127 ZAR) early in June, with many crypto competitors following the same path, seeing increases as demands increased.

Some of Bitcoin’s main competitors include the likes of Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Dogecoin (DOGE), which is a personal favorite of Elon Musk, CEO of Tesla. Because of rampant speculation, Dogecoin experienced massive increases. However, after Musk appeared on Saturday Night Live (SNL), DOGE saw rapid decreases following Musk’s joke that it is merely a “hustle”.

Blockchain

Bitcoin transactions are stored on a decentralized public ledger underpinned by blockchain technology while keeping the owners and participants anonymous. The date, time, and amount exchanged is the type of information, which is stored on the blockchain, and every transaction must be verified before it can be added, with no option to edit the information once it is added.

Blockchain technology is directly linked to cryptocurrencies, but the technology is being developed for other purposes and it has the potential to impact several global industries including healthcare, finance, supply chain, E-commerce, and several others.

Blockchain technology is anticipated to save banking firms millions as it can easily reduce regulatory compliance while it can effectively ensuring instantaneous financial transaction management, all in a secure environment.

Many blockchain start-ups are being developed, allowing for stronger corporate security, the monitoring and operating of supply chains, and streamlining interactions between several devices by using the Internet of Things (IoT) alongside machine learning and artificial intelligence.

Many governments around the world are starting to use blockchain technology to certify sensitive records, and there are also Non-Fungible Tokens (NFTs) that are being developed.

NFTs are certified by the public ledger as unique property embedded in a digital asset, providing it with a verified 1:1 status. Many NFTs range from fine art pieces, to music videos, and several other different things, with some of these being sold for millions.

Storage

Cryptocurrencies are not physical assets or money that can be kept in a traditional wallet. They, therefore, need a digital wallet, which is computer software, which is protected by several different security features, such as private keys, to ensure that funds are safe from hackers.

Digital assets can be bought, sold, traded, and exchanged either through cryptocurrency exchanges, trading platforms, or brokers that offer cryptocurrencies as derivatives. To buy and sell digital assets, traders must have a digital wallet.

Traders and investors can either use hot wallets, which are online, or cold wallets, which are offline, and which are considered the safest option. Ideally, traders and investors can use a combination of the two. They can keep their total funds in a cold wallet and only keep enough funds in the hot wallet to make payments or conduct trading activities.

Security and Environmental Impacts

Cryptocurrencies, especially Bitcoin, have faced years’ worth of controversy, especially where both security and environmental impacts are concerned. Cryptocurrencies are known for being unregulated, allowing many malicious individuals to create elaborate scams that trick investors into investing their funds.

South Africa has seen several over the past year, and even if authorities are cracking down on these criminals, most of the funds lost cannot be recovered due to the digital nature of the assets. Many cryptocurrency hacks are reported, with many reputable exchanges that offer their users compensation if their security is breached and there is theft of assets, giving traders and investors some peace of mind.

However, the security features and functions of brokers, platforms, and exchanges have improved drastically. The risk of theft is something that will always be present, and investors and traders are always urged to ensure that they protect their funds instead of relying on their exchange platform or broker to do it on their behalf.

Where environmental impacts are concerned, Bitcoin and other cryptocurrencies that must be mined to release new coins, have been criticized greatly because of the massive amount of computational power required in the mining process, which translates to increases in electricity use, carbon dioxide emissions, and more.

This was one of several reasons why Elon Musk had recently withdrawn his commitment to accepting Bitcoin as payment for Tesla. Bitcoin mining has proven more effective and efficient in areas where there are cooler climates and reduced energy costs such as Iceland, Canada, and Upstate New York.

The mining of coins is not only a necessary process to release coins into circulation, but the consensus method involved, Proof-of-Work (PoW), is essential to verify transactions and to ensure the network’s security.

The Influence of Large Companies and Major Investors

There are many large companies and major investors around the globe who have endorsed cryptocurrencies, especially because it is considered a variable and valuable addition to portfolios and a great alternative to holding cash.

Many professionals have advocated small positions in speculative coins, but there are also large investors such as Warren Buffet and Bill Gates who advocate against cryptocurrencies’ ability to produce tangible wealth.

While there are many banks and financial institutions that encounter negative commentary towards cryptocurrencies, large payment processors such as PayPal and MasterCard have shown their support by allowing cryptocurrency transactions in their networks.

The Future of Crypto

Cryptocurrencies do not have a definite or clear future, with regulation looming and with uncertainty about whether investments will produce anything of value. However, many investors have made it a part of their portfolio, allowing them to reap the benefits of price fluctuations.

Many global governments have considered building local cryptocurrencies, allowing them to test how crypto coins will perform against private offerings, in addition to determining how they could affect economies.

What is Dogecoin?

Dogecoin (DOGE) is an open-source and peer-to-peer (P2P) cryptocurrency and altcoin that was initially created as a joke. Dogecoin is typically identified according to its logo, a Japanese Shiba Inu dog that has been the topic of many internet memes in recent years.

Despite the reason for its creation, Dogecoin’s blockchain carries a certain level of merit and it has a solid underlying technology on which the blockchain is based, derived from Litecoin. Dogecoin is typically known for its unique Scrypt algorithm, its low and affordable price, and its unlimited supply.

Understanding Dogecoin

Dogecoin was created as a joke but following its launch, it gained a massive following, especially on social media. In 2017, Dogecoin entered a cryptocurrency bubble that increased its value.

However, the bubble only lasted until 2018 and after it had burst, Dogecoin’s value plummeted. Despite this, Dogecoin still maintained its millions of followers and supporters who religiously traded and mined it, using it to tip content creators on Reddit and Twitter.

History of Dogecoin

Jackson Palmer, who had worked at Adobe, Inc. at the time, created Dogecoin in 2013, aiming to satirize the hype that surrounded digital assets. Palmer was known as a “skeptic-analytic” and he spent a tremendous amount of time observing technologies before he tweeted about a venture to create the “next best crypto”, which was done tongue-in-cheek.

However, the social media community received this idea with open arms and Palmer received a significant amount of support, motivating him to buy the domain Dogecoin.com.

At the same time, in Oregon, a software developer at IBM, Billy Markus, had plans to create a cryptocurrency but he was met with many challenges in promoting his efforts. He came across Dogecoin and reached out to Palmer, obtaining permission to develop the software behind Dogecoin.

The code of Dogecoin was based on Luckycoin which is another altcoin derived from Litecoin’s blockchain technology. Dogecoin’s initial reward system was based on a randomized reward given to miners who solved the algorithm. However, this was changed to a static reward in 2014.

Dogecoin uses the same script technology that is employed by Litecoin in addition to employing a PoW consensus method to mine coins and secure the network, the same as Bitcoin.

Dogecoin was launched in December 2013 and in two weeks Dogecoin’s value increased by 300%. The theory of its sudden success revolves around China forbidding cryptocurrency investment by Chinese banks.

The Rise of Dogecoin

Dogecoin established itself as a “fun” version of Bitcoin from when it was launched, with a playful Shibu Inu, a well-known Japanese breed of dog, as its logo. Dogecoin may be causally presented, but it suits the mood of its supporters and dedicated community. Dogecoin’s popularity can purely be attributed to the memes that circulate the Internet, as well as support from Elon Musk.

Dogecoin uses Scrypt technology and there is an unlimited supply of DOGE, which has made it a popular choice and a more adaptable, faster, and consumer-friendly version of Bitcoin. Bitcoin is considered a deflationary coin as there is a set supply, while Dogecoin is inflationary because of its unlimited supply.

Another feature of Bitcoin involves the halving of its reward every four years, with halving occurring until there are no more coins to release.

Dogecoin has also made headlines with its community making various donations including 27 million DOGE which was given to fund the Jamaican bobsled team’s trip to the Sochi Winter Olympics in 2014.

The community also donated $11,000 (157,182 ZAR) worth of DOGE to build a water well for a community in Kenya. Another $55,000 (785,914 ZAR) worth of DOGE was given to sponsor the NASCAR driver, Josh Wise.

Pros and Cons of investing in Dogecoin

How to buy Dogecoin in South Africa step-by-step

Step 1 – Register an Account on Binance

• Navigate to the official website for Binance and select the option to “Register Now” from the homepage.
• The page will redirect to “Create a Free Account” where the user can either use their email address or mobile telephone number to sign-up.
• The user can enter their email address and a user-selected password, or they can select “mobile” to do the same with their mobile number.
• The user can enter their country code and mobile number followed by their user-selected password.
• Once complete, the user can read and accept the Terms of Service before clicking on “Create an Account”.
• The next step involves a Security Verification to ensure that the user is not a robot.
• Next, there is an Account Verification which involves a 6-digit verification code being sent to the registered email of the user or their mobile telephone number.
• The code is valid for 30 minutes and it must be entered in the field provided on the verification page.
• Once verification has been completed successfully, the user will be redirected to a welcome page where they can choose to trade or purchase Dogecoin.
• If users are new to cryptocurrency, they are advised to visit the “Learn More” section at the bottom of the page.

Step 2 – Secure Your Account with Two-Factor Verification

• On the Trader’s Dashboard, the user can select the option to secure their account through Two-Factor Authorization or Verification (2FA). Phone verification is a secure option, but users are urged to use Google Authenticator to ensure the security of their accounts.
• The user can download and install Google Authenticator onto their mobile device.
• Once installed, the user can open the mobile app and either scan the QR code or type in the one-time, unique code that is provided on the Binance Account to save the credentials onto Google Authenticator.
• Once complete, the user must write down and store their backup key to recover their account on Google Authenticator in case it is lost or misplaced.
• Lastly, the user can enter the 6-digit code that they will receive on their email address along with the Google Authenticator code to finalize this security feature.

Step 3 – Deposit Funds into your Wallet

Binance allows users to purchase cryptocurrencies either through fiat deposits or crypto wallets. Users can access their deposit options from either of the following areas:

• The “Welcome to Binance” banner
• By hovering over “Buy Crypto” at the top of the webpage, and by choosing a preferred payment method from the list.
• Select “Deposit” on the “Balance Details” section on the Trader’s Dashboard.

Once the option to make a deposit has been selected, users can choose whether they want to transfer crypto from another digital wallet, or whether they wish to make a fiat deposit.

For transfers from other cryptocurrency wallets, follow these steps:

• The user can choose their preferred digital coin between Bitcoin, TetherUS, BNB, EOS, or Ethereum.
• The user can choose their preferred network.
• The user can copy the address or scan the address QR code from their wallet where they are depositing.

For fiat deposits, follow these steps:

• The user can select deposit currency from the provided dropdown list. For a fully comprehensive list of fiat currency options, the user must verify their identity and face.
• The user can select the payment method according to the deposit currency.
• The user can enter the deposit amount and any other necessary details. Kindly pay attention to the transaction fee and the new balance due once it has been subtracted.
• The user can continue and finalize their deposit.

Step 4 – Start Trading DOGE

Once the Binance wallet has been funded, the user can visit the “Markets” section by selecting the option from the top of the page, allowing the user to see the available cryptocurrencies that can be bought and sold.

From here the user can buy, sell, and trade different cryptocurrencies including Dogecoin at competitive prices.

FAQ

What is Dogecoin?

Dogecoin is a cryptocurrency that started as a joke in 2013 but has become wildly popular because of its supporters and support from Elon Musk.

When was Dogecoin released?

Dogecoin was launched in December 2013.

Where can I buy Dogecoin?

You can buy DOGE from a range of cryptocurrency exchanges and through brokers that offer it as a CFD derivative trading instrument.

Is Dogecoin a good investment?

DOGE can be a good short-term investment, especially for day traders who use specific trading strategies to trade extremely volatile markets with high levels of liquidity and many participants.

How is Dogecoin different from Bitcoin?

Dogecoin was initially founded as a joke while Bitcoin is the original cryptocurrency with a significant amount of merit. Bitcoin is also being accepted around the world as a store of value and alternative currency to fiat currency for payments.

Can I convert Bitcoin to Dogecoin, and how?

Yes, you can convert Bitcoin to DOGE through a cryptocurrency exchange or a crypto trading platform that supports such a transaction.

Is Dogecoin a real cryptocurrency?

Dogecoin is a real cryptocurrency that is based on its blockchain, using a Proof-of-Work consensus method to verify transactions. DOGE is a popular cryptocurrency that is experiencing more adoption and is featured on most major cryptocurrency exchanges.

Will Dogecoin’s value increase?

According to experts, DOGE will increase to $0.872 by the end of 2025.

Are there risks involved with buying Dogecoin?

Yes, all investments involve some level of risk. Dogecoin is traded in a very volatile market where prices can fluctuate rapidly. Traders are urged to ensure that they use risk management protocols, and that they correctly size their positions when they trade Dogecoin.

In addition, traders are also urged to trade Dogecoin through legitimate exchanges and brokers to eliminate the risk of being exposed to elaborate scams where investors may lose their capital, which cannot be retrieved once it is deposited and transferred to another account by a scammer.