Dogecoin (DOGE) was launched as a joke currency in 2013 to poke fun at the volatile nature of cryptocurrencies. Nobody expected DOGE to become one of the most valuable crypto commodities on the market, but that’s exactly what happened.
The incredible price surge DOGE experienced has naturally generated a lot of interest in how to buy and trade Dogecoin. This guide covers everything you need to know to buy Dogecoin in Venezuela.
Venezuela has experienced remarkable cryptocurrency adoption in recent years. According to a global crypto adoption index published by Chainalysis, Venezuela ranked third in cryptocurrency adoption in 2020. It was number one out of all South American countries.
The economic effects of the COVID-19 pandemic likely played a role in increased adoption in an economy that was already struggling because of severe hyperinflation. Venezuela experienced extreme hyperinflation in 2016 due to an ongoing political and socio-economic crisis. Inflation reportedly exceeded 10,000,000% by the end of 2019.
As a result, Venezuelans have turned to cryptocurrencies as an alternative store and transfer of value. Crypto has also become the preferred choice for cross-border remittances. There are several options for acquiring Dogecoin in Venezuela. We’ve shortlisted our recommendations for some of the best brokers below.
Cryptocurrency brokers have become commonplace thanks to the surge in interest in digital currency trading in Venezuela and abroad. Many of the best ones are licensed to operate in several countries. They comply with financial regulators and offer quality services to users. Read on to learn more about how to open an account with a broker in Venezuela.
The first step is to register an account with a broker. Once you’ve selected a suitable service after comparing variables like security and costs, find the option to make a new account. As with any service, you’ll need to provide some basic details as part of the sign-up process, such as your name, email address, location, and phone number.
Once you’ve created an account, the next step is to go through the Know Your Customer (KYC) verification process. Broker platforms will limit activity on your account until you provide documents that prove your identity and physical address. Acceptable forms of ID include a government-issued national ID, passport, or driver’s license. For proof of address, a recent bank statement or a utility bill that contains your address should be good enough.
Broker platforms offer numerous payment methods for funding accounts. Some of the universally accepted payment methods include direct bank transfers, credit cards or debit cards, and crypto transfers. Some brokers also accept payments using services like PayPal.
Bank transfer is recommended for large crypto purchases because of the low fees. Credit or debit cards are another good option, but their fees tend to be steeper than other payment options. PayPal and similar third-party services are also convenient and quite secure since they save you from giving out your bank information.
Please note that most broker platforms only accept global fiat currencies like U.S. dollars, British pounds, and Euros. If you want to buy using Venezuelan bolivars, then you need to use a platform that specifically targets users in South America. Out of all the available payment options, crypto transfers are probably the best for Venezuelan users due to the state of the bolivar.
Traders generally invest in cryptocurrencies by opening a short or long position. Opening a short position involves speculating on the direction the market price of Dogecoin will take. It typically involves buying and selling financial derivatives like CFDs (Contracts for Difference) that are tethered to the price of DOGE. Taking a short position doesn’t require you to own any DOGE since CFDs are usually opened and settled using fiat money.
On the other hand, opening a long position involves buying and holding DOGE in anticipation of a price increase. For instance, if you wanted to open a long position with no leverage on eToro, then you’d first have to buy Dogecoin from the platform. You can then open a long position and close it when you hit your desired profit target.
Brokers offer a variety of order types to help traders open short or long positions. Some common order types include:
Other order types include trailing stop-loss orders, all-or-none orders, immediate-or-cancel orders, and more. Take the time to acquaint yourself with the different order types to get the most out of crypto trading.
Knowing when to close your position is an important part of the trade process. Usually, a trader closes their position once they reach their desired profit level or if the market turns bearish and their position is causing a loss. While it is possible to manually close a position in either of these scenarios, it’s a better idea to automate your settings.
Broker platforms allow traders to set take-profit or stop-loss levels for this exact reason. Using these settings to set up predefined criteria for closing a position saves the trader from the stress of having to constantly monitor the market to close a position manually.
Cryptocurrency exchanges are another option for buying DOGE in Venezuela. These platforms allow users to buy DOGE using a variety of funding options. Unlike brokers, exchanges don’t typically support trades. They instead facilitate the secure purchase of DOGE, which is delivered to a wallet of your choice for storage.
Crypto exchanges are quite popular in Venezuela. In fact, statistics show that a large majority of crypto purchases in Venezuela occur on exchange platforms. The next section will take you through the process of setting up a wallet, funding your account, and making your first DOGE order.
Exchanges automatically create wallets for users when they create a new account. These third-party wallets are convenient and easy to use, but they are not recommended for long-term storage. It’s a good idea to set up your own cryptocurrency wallet, especially if you plan to store your DOGE for months or years. There are three broad categories of crypto wallets:
Web wallets: These are browser wallets that can be used from anywhere in the world as long as you can access Chrome, Firefox, or Safari. They’re very easy to set up and use, but they’re not ideal for long-term storage. Exchange wallets are an example of web wallets.
Software wallets: These are software programs or apps designed for desktops, laptops, smartphones, tablets, and other devices. They are platform-specific (e.g. Windows, Linux, Android, iOS, etc.) and offer better security than web wallets.
Hardware wallets: These are physical devices that look like a USB thumb drive. They’re the most secure out of all the wallet options and are generally considered the gold standard for secure crypto storage. These tamper-proof devices offer completely offline storage, which means your DOGE will be safe from Internet-based hacks and theft.
Finding the right exchange is the most difficult step. There are so many to choose from, and each one has Dogecoin as an option. Compare factors like platform deposit/withdrawal fees and available fiat pairs to find a suitable cryptocurrency exchange. Most exchanges offer U.S. dollars, British pounds, or Euros as fiat trading pairs against Dogecoin. If that’s a deal-breaker, then consider using an exchange that targets South American users and accepts Venezuelan bolivars.
Other factors to consider include compliance with KYC/AML rules and available built-in security features. Remember, all reputable platforms comply with KYC/AML rules to protect users from fraud, theft, money laundering, and other criminal activities.
Like broker platforms, most exchanges accept multiple payment methods for funding accounts, including bank transfer, credit/debit cards, and PayPal or an equivalent service. Some platforms also accept crypto payments, which might be more convenient than using bolivars.
Out of all the above options, direct bank transfers are the most affordable in terms of fees. Credit or debit cards are another popular option, but the fees are much steeper. Some credit card companies also block transactions on crypto platforms, so check with your bank before you use your card.
PayPal is also a common option, but it will require you to convert the bolivars in your bank account into USD before you can fund your exchange account.
The order process on exchange platforms is designed to be intuitive. Once you’ve funded your account, simply find a DOGE/USD pair, enter the price you want to pay, and then click the “Buy” button.
If you’re patient and want to wait for the best price, then set up a limit order. Enter your target price, and the order will be triggered once the value of Dogecoin reaches your desired price. On the other hand, traders who are in a hurry can set up a market order to immediately buy Doge at the current market price.
Once your Dogecoin purchase is fulfilled, transfer your coins to a secure wallet for storage. Transferring assets out of an exchange wallet is usually very straightforward. Simply find the “Withdraw” option and then enter the address of the Dogecoin wallet where you want to transfer your coins. This step is completely optional and is only recommended for investors who plan to hold on to their DOGE for a long time.
The only way to buy Dogecoin with cash in Venezuela is by finding an individual with DOGE who is looking to sell. These “in-person” peer-to-peer transactions are risky because there is no way to guarantee the seller is honest.
Another viable alternative is to use crypto ATMs, but there is only one such ATM in Caracas, and it only supports Bitcoin and Dash. If you’re patient, then you could use the Bitcoin ATM to buy BTC and trade it for DOGE on an exchange platform.
P2P platforms are also a good option for buying crypto with cash, but these platforms typically only offer popular currencies like BTC. As with the ATM, you’d have to use a P2P platform to buy Bitcoin locally and then trade that for DOGE on an online exchange.
Whichever option you choose, make sure you stick with regulated platforms. The Venezuelan government has taken steps to regulate crypto use in the country. The national crypto watchdog, SUNACRIP (Superintendencia de Criptoactivos y Actividades Conexas de Venezuela), announced monthly limits and a 15% commission on crypto remittances back in 2019. In 2021, SUNACRIP quietly passed new KYC/AML requirements for exchanges that operate in the country.
We’ve covered how to buy Dogecoin using brokers and exchanges. Below are three tips every investor should consider before buying Dogecoin.
Any good investment needs some research into the asset to determine the best time to buy for maximum profits. Dogecoin is no exception. Take the time to learn how DOGE works and its future potential as an investment. Don’t let the bull run Dogecoin experienced in 2021 cloud your judgment. A sudden surge in price is not indicative of how the coin will fare a year or even three months from today.
Every crypto platform charges fees for deposits, withdrawals, and transactions. The best ones are upfront and transparent with this information. Compare the costs of different platforms before you commit to using a particular one. The deposit fees, commissions, and withdrawal fees may seem insignificant, but they can quickly add up—especially if you’re performing numerous DOGE transactions.
Security is an important consideration when using a crypto platform. Try to use platforms that provide basic security features such as network traffic encryption, two-factor authentication, and private key encryption. Make use of all available security features to protect your assets. If your goal is long-term storage, then set up a secure wallet for your DOGE.
Most crypto brokers and exchanges only support global fiat currencies like U.S. dollars and British pounds. Unless you use a South American platform, you have to convert your bolivars into USD or GBP. Crypto platforms typically use the exchange rate of the day to convert fiat currencies, so take the VEF/USD exchange rate into consideration before you fund your account.
In addition to exchanges and brokers, it is possible to obtain DOGE through ATMs and P2P platforms. You can also try mining DOGE if you have the right equipment. Below are some of the other ways to obtain Dogecoin in Venezuela.
Use a Dogecoin ATM to Buy DOGE: There is only one crypto ATM in Caracas, and it only supports BTC and DASH. It may take more work than a direct purchase, but you could use the ATM to buy BTC or DASH and then trade your coins for DOGE on an exchange platform.
Other Ways to Get Dogecoin: Mining DOGE is another option to obtain Dogecoin. The Dogecoin network is secured using a proof-of-work hashing algorithm called Scrypt. It’s the same algorithm used by Litecoin and numerous other cryptocurrencies. Unlike Bitcoin’s SHA-256 hashing algorithm, Scrypt requires significantly less energy to confirm transactions and secure the blockchain. The network pays out 10,000 DOGE as a block reward to miners, so it’s a viable way to earn DOGE without having to buy.
Dogecoin’s remarkable growth has significantly increased demand for the coin. Luckily, there are numerous ways prospective investors can safely and securely acquire DOGE. Remember, every investment carries inherent risks. There are no guarantees about how the price of DOGE will perform in the future.