How to Buy Dogecoin in Colombia in 2024
Who knew a meme coin that doesn't offer much utility other than making us laugh would become one of the top cryptocurrencies in the market ?
So, are you looking to buy Dogecoin in Colombia? This guide will teach you how to get started.
Quick Guide to Buy Dogecoin in Colombia Today
Sign up
The first step is to identify a reputable platform that offers access to DOGE in Colombia, then sign up for an account. You will be required to enter your personal details and set up a strong password. Then proceed to verify your account by submitting the necessary personal documents. This is in line with AML and KYC rules these platforms have to abide by. If everything checks out, your account will be verified.
Fund your account
Most platforms that offer access to Dogecoin will support a variety of ways to fund your account including through bank transfers, third-party payment modes and credit/debit cards. Choose the mode that suits your needs best and proceed to send funds to your account. The speed at which the funds get to your account will depend on the mode you opt to use. For example, bank transfers can be cheap but will take longer.
Buy Dogecoin
After the funds reflect in your account, it's time to make the purchase. This will involve clicking on the "Buy" button before proceeding to enter the amount of DOGE coins you would like to purchase or the amount you would like to spend, and then proceed to complete the transaction. Reputable platforms ensure they have simple user interfaces with everything labeled clearly, making the purchase process relatively straightforward.
Where to Buy Dogecoin in Colombia in 2024
If you want to buy Dogecoin as a resident of Colombia, you have three options; brokers, exchanges, and Bitcoin ATMs.
Brokers help users interact with financial instruments attached to DOGE with potentially higher profits since you get to trade with leverage. On the other hand, exchanges will allow you to access the actual asset which is deposited in your exchange wallet. You can trade the asset on the spot, use it to make transactions, or opt to hold it for the long term. In the latter case, ensure you invest in a secure hardware wallet such as Ledger or Trezor and move the coins there once you make the purchase. So, your choice will be influenced by whether you plan to hold on to the coin, which means you need access to the actual asset, or you need to trade financial instruments attached to DOGE without having to worry about acquiring and safekeeping the asset.
Step by Step Guide – How to Buy Dogecoin in Colombia
The sections above have given you a rough idea of what you need to buy Dogecoin in Colombia. This part will go into greater detail on the actual process and offer additional tips on protecting your investment.
Step 1: Find an Appropriate Platform to Buy Dogecoin
If you want to buy Dogecoin, you need to identify a platform that will allow you to make the purchase. As mentioned in the section above, this can be brokers or exchanges. Even though the government of Colombia hasn't officially embraced crypto coins, it doesn't have a problem with its citizens engaging with these digital assets as long as they are aware of the involved risks. If you are a long term hodler, consider getting a crypto wallet. Always use regulated platforms to avoid the risk of fraud.
Check out our guide on how to find the best exchanges or best brokers to buy DOGE.
Step 2: Registration / Create a New Account
After choosing the most suitable platform to use, register an account by entering your personal details, such as an email address/phone number, and setting a strong password. A link will be sent to the email inbox that you have to click to get the email verified. Then you will be required to verify your identity by submitting a photo of your ID/passport and a selfie. Some platforms may request a video call for this process. The purpose is to confirm if it's you that appears on the document submitted. Also, you have to verify your address by submitting a utility bill such as a water or electricity bill with the address clearly visible. These documents will be reviewed, and your account will be verified in a few minutes or hours.
Step 3: Deposit Funds
With the account verified, it's time to fund it. There are plenty of ways to go about this, including bank transfer, credit or debit cards and third-party payment options such as PayPal. These modes will vary in speed and fees charged. Bank transfers can be cheap but will take about 3 to 5 business days to reflect.
Step 4: Start Trading or Buying Dogecoin
Now that your account is funded, you can purchase Dogecoin by visiting the buy tab and entering the number of coins you would like to purchase or the amount you would like to spend. Most exchanges will allow you to buy coins worth at least $10, while brokers will require you to fund your account with at least $100 to $250. Remember, exchanges offer access to the actual asset. On the other hand, brokers will offer trading of financial instruments attached to DOGE. But there are exceptions. An exchange such as Binance will offer access to the actual asset, spot, and derivatives trading. While a broker such eToro will offer access to DOGE derivatives and access to the actual asset.
Step 5: Optional Steps
The first thing you need to do once you sign up on any platform is to set a strong password and activate the two-factor authentication (2FA). This helps boost the security of your account. If you are handling the actual asset, ensure you invest in a secure hardware wallet and move your coins there once you make the purchase. And if you are trading derivatives attached to the asset, ensure you hedge your investment to minimise chances of incurring a loss.
What is the Best Payment Method for Buying Dogecoin in Colombia
Below are a few popular ways you can buy DOGE while in Colombia. Remember, each mode has its pros and cons, so it's up to you to weigh them and opt for the best option.
Buy Dogecoin with Cash – This is possible in two ways; peer-to-peer or using crypto ATMs. In the former case, you will have to arrange to meet up with the seller, who will transfer the coins to your wallet once you make the payment. However, this can be risky since you are dealing with strangers and getting robbed is high.
Buy Dogecoin with Bank Transfer – Colombian regulators have instructed financial institutions not to deal with crypto entities; however, it's still possible to fund your broker account via a bank transfer. The fees are low, but it might take a while before funds get to your account.
Buy Dogecoin with PayPal – This is a safe and convenient mode to fund your broker or exchange account and make a purchase. Third-party payment processors are fast as compared to other modes such as bank transfers.
Buy Dogecoin with Bitcoin – This is the easiest way to buy DOGE in Colombia since all you need to do is to swap your BTC for the coin. However, you need to have some BTC with you before you exchange it for DOGE. If this is your preferred payment options, follow our step-by-step guide to buying BTC in Colombia.
Why Buy Dogecoin?
Dogecoin might be a joke currency, however, its market performance means it can't be taken as a joke. The coin sits in the top ten of crypto charts, and for a good reason. Despite lack of actual utility, the Dogecoin community has grown too strong to a point the coin itself can't be ignored.
For example, it's listed on many crypto exchanges making it accessible to people from any corner of the earth. Also, some major companies are said to accept payment in the coin, including the likes of Dallas Mavericks, airBaltic, Post Oak Motor Cars, and many others. Most importantly, it has the backing of Elon Musk.
Endorsement by various celebrities has projected this meme coin to the moon. Elon Musk, Mark Cuban, Snoop Dogg and many others have constantly been crusading for this coin using their social media accounts, thereby bringing it to public consciousness. As more people have joined the network, its value has kept on growing. Despite the 2,000x growth, many believe it's only the beginning.
Is it Legal to Buy Dogecoin in Colombia?
Cryptocurrencies reside in a grey area in Colombia since the government is yet to develop a clear definition of the industry. However, you are free to buy and sell digital assets such as Dogecoin. That said, Colombia ranks high in South America among nations with the highest adoption of digital currencies. Digital assets like DOGE are subject to taxation, to find out more about this topic, visit our Colombia cryptocurrency tax guide.
Where Can I Use Dogecoin in Colombia?
Even though crypto isn't prohibited in Colombia, you will struggle to find establishments that accept payment in digital currency. But all hope isn't lost since the country is very pro-crypto, with many individuals aware of digital assets. This means you can agree with an individual or business to buy goods or pay for services using DOGE. A better option is converting your coins into Colombian Peso and spending them as you like. This is possible using crypto ATMs that accept buying and selling over 10 crypto coins. Today, around 50 such ATMs spread out in different locations in the country, such as Bogota (29), Medellin (6), Pereira and Bucaramanga (3), and many others.
Our Recommended Best Way to Buy Dogecoin in Colombia
This guide has taken you through the journey of buying Dogecoin in Colombia. The steps you need to take including how to sign up on a given platform and the payment modes that are available at your disposal. Our choice for the best option to buy Dogecoin is listed below.
Frequently Asked Questions
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Yes. It's possible to use the Colombian Peso to buy Dogecoin while in Colombia. This goal can be achieved in two ways; using a Bitcoin ATM, and there are over 50 in various cities and towns around the country. Also, you can choose to buy DOGE via peer-to-peer platforms where you arrange to meet up with the seller, who will transfer the coins to your private wallet once you make the payment. For the latter option, you need to be extra careful since you will be dealing with strangers.
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The answer to this question lies with a person and how much they have planned for this activity. Due to network fees, most exchanges will require you to purchase coins worth at least $10. At the current price, that amount should get you at least 5 DOGE coins. As for brokers, you will have to fund your account with at least $100 to $250 before you are allowed to trade there.
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Yes. Cryptocurrencies in the country are taxed as an asset. Even though the nation doesn't have much clarity when it comes to digital currencies, you are better off keeping a detailed record of your trades to avoid getting on the wrong side of the taxman.
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Whether you are dealing with the actual asset using a crypto exchange or trading instruments attached to DOGE using brokers, the first step you need to take to protect your funds is to set a strong password for your account and activate the two-factor authentication (2FA). Then if you are dealing with the actual asset, consider moving your coins to a private hardware wallet once you buy them.
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Brokers will allow you to trade DOGE derivatives with leverage which increases your exposure within a given market. However, the losses can also be huge here so learn to manage risk while trading.