If you want to buy Dogecoin, follow these simple steps:
- Choose a cryptocurrency exchange like eToro, IG, or Interactive Brokers
- Deposit some funds (never risk more than you can afford to lose)
- Buy Dogecoin (you will have to convert your GBP or USD into DOGE)
- Decide if you want to leave your Dogecoin on an exchange or download it to a cryptocurrency wallet.
Three important things to remember about investing in any meme coin like Dogecoin
- If you keep your crypto on an exchange, you may lose it if the exchange goes bust
- If you keep your crypto in a wallet, you may lose it if you lose your wallet.
- Dogecoin is a Memecoin which is potentially worthless
What is Dogecoin?
Created in 2013 initially to mock other so-called meme coins, Dogecoin became a “thing “ in itself. A case of life imitating art, if you will.
Despite starting life as a parody, Dogecoin was built on Litecoin’s Script protocol, which is known for its high transaction speed and low transaction costs, and this helped to differentiate it from some of its peers.
Unlike Bitcoin, the supply of Dogecoin is unlimited and therefore likely to limit its upside over time.
Miners on the Dogecoin blockchain can produce up to 10,000 new coins per minute, according to crypto exchange Coinbase (COIN)
Dogecoin became linked with Elon Musk in 2021 following his endorsement of the cryptocurrency, which created a significant swell in retail trader interest in the coin.
Dogecoin’s market cap rose to as high as $85.0 bln on the back of this.
Today, that figure stands at just $26.56 billion, and the price of Dogecoin has fallen by almost 43.0% year to date, a quarter of that decline being posted over the last month.
Dogecoin Versus Tesla
The chart below plots Dogecoin in US$ against Tesla (TSLA).
It’s perhaps no surprise that both instruments have fallen together, as Elon Musk’s “stock” declined during his time at DOGE, the Trump administration’s Department of Government Efficiency.
The department and Musk’s management of it were quickly embroiled in controversy and never recovered, and that proved damaging for the price of both the EV maker that he is CEO of and the meme coin that he is inextricably linked to.
Events took a turn for the worse recently when Musk left the Trump administration, and before the dust had even settled, an acrimonious war of words broke out between President Trump and Elon Musk.
This was played out on social media with a mix of insults and outlandish claims being made by either side.
There was talk of rapprochement between the former allies, but that has not materialised, and President Trump has said that his relationship with Elon Musk is over.
Elons Musk’s 129 days at Doge were largely unproductive, and the slash-and-burn policy he adopted towards government spending may end up causing far more problems than it was intended to solve.
Is Dogecoin a good investment?
Well, any cache that was attached to the coin, thanks to Elon Musk’s association with the Trump Administration, has surely now been lost.
Dogecoin remains up by +22.56% over the last 52 weeks, and it is +8.36% above its one-month low of 0.16834 cents per coin.
However, it has posted 4 new one-month lows in recent weeks, and 9 new, year-to-date lows in 2025 so far.
The one-month high is up at 0.259261, almost +30.00% above the current price.
Dogecoin isn’t driven by fundamentals, it’s all about sentiment and momentum. It may not be a complete lost cause, indeed, it posted gains in 3 of the last 5 sessions. But they have the smack of bear market bounces, and when it did fall, it posted losses of -10.13% and -3.26%.
Meme traders have been able to resurrect many lost causes over recent years, so we can’t discount a revival entirely, but I just can’t see where the catalyst comes from and how the Dogecoin’s price overcomes the issue of open-ended supply in the name, so to my mind the risks remain to the downside.
With over 35 years of finance experience, Darren is a highly respected and knowledgeable industry expert. With an extensive career covering trading, sales, analytics and research, he has a vast knowledge covering every aspect of the financial markets.
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As well as extensive experience of writing financial commentary, he previously worked as a Market Research & Client Relationships Manager at Admiral Markets UK Ltd, before providing expert insights as a market analyst at Pepperstone.
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