How to Buy Dogecoin on Ally Invest

How to Buy Dogecoin on Ally Invest

Dogecoin, initially launched as a parody cryptocurrency, is presently recognized as a viable investment prospect. Unlike centralized assets like stock, Dogecoin is a volatile digital currency that allows greater chances of an increase (and decrease) in value within a short period. 

There is no option that allows you to buy Dogecoin on Ally Invest. However, you can make investments in Exchange-Traded Funds (ETFs), stocks, and closed-end funds once you have opened a brokerage account on Ally Invest. These investments can then expose you to opportunities to invest in the digital currency market.

In this article, you will learn the several ways you can buy Dogecoin as an Ally Invest customer. But first, let’s take a look at what you need to know about trading or investing in Dogecoin.

Is Dogecoin a Promising Cryptocurrency to Buy?

Before you invest in an asset, be it fiat or cryptocurrency, a typical question to ask will be, “is this a good investment?” 

Despite its lower status than Bitcoin and Ethereum, Dogecoin’s value continuously increases as many investors regard it as a profitable investment. Dogecoin outperformed the S&P 500’s 18% increase by a wide margin of 130% gain in 2020. And in 2021, DOGE is up 45% compared to the stock market’s 2.5% increase.

Many crypto experts and influencers have made positive reviews on Dogecoin’s position in the crypto market. For example, Forrest Przybysz, a prominent crypto analyst, projected that Dogecoin’s price would remain stable, as it did previously, before soaring in the coming years. Paul Levy, a senior lecturer at Brighton Business School, also believes that Dogecoin will be worth more than one US dollar by 2025.

The value of DOGE will continue to rise as long as people continue to demand and use it. Many businesspeople accept this altcoin because its speed and low cost of processing make it optimal for regular transactions.

Can You Buy Dogecoin on Ally Invest?

Ally Invest does not offer the financial service for the purchase of Dogecoin and other cryptocurrencies. So, you cannot buy Dogecoin directly on Ally Invest.

Nonetheless, the recognized assets for investment on Ally Invest can offer you exposure to the cryptocurrency industry in a couple of ways.

How Can You Buy Dogecoin with Your Ally Invest Account?

Buying Dogecoin directly on Ally Invest is not possible. Does this mean there are no avenues to participate in the crypto market with Ally Invest? No.  

There are other ways – generally financial platforms (that support crypto trade) linked to an Ally Invest brokerage account – to buy Dogecoin.

These alternatives include:

·         Blockchain ETFs

Blockchain is an autonomous digital ledger that promotes and registers all types of financial operations. Blockchains have their collective ledgers, which are updated every time a transaction is carried out. The data on a collective ledger is synced across the network of all parties involved to ensure public accountability and reliability. 

Blockchain ETFs are funds that invest in securities tied to the performance of cryptocurrencies. These ETFs are also used in business investments that build and employ blockchain technology to enhance commercial applications. That is, blockchain ETFs are developed in such a manner that they solely invest in a limited range of equities from firms involved in the blockchain sector.

There are several blockchain ETFs currently traded. The common blockchain funds (and their ticker symbols) include the Bitwise Crypto Industry Innovators ETF (BITQ), Amplify Transformational Data Sharing ETF (BLOK), First Trust Indxx Innovative Transaction & Process ETF (LEGR), VanEck Vectors Digital Transformation ETF (DAPP), Siren Nasdaq NexGen Economy ETF (BLCN), Capital Link NextGen Protocol ETF (KOIN), and Global X Blockchain ETF (BKCH). All of these blockchain ETFs are equity assets.

BLOK is one of the blockchain ETFs available for trading at Ally Invest. This ETF invests in popular cryptocurrencies, including Dogecoin.

·         Mining Stocks

Mining, in this case, is mainly about cryptocurrency.

Crypto mining refers to the process of gathering cryptocurrency by using computer algorithms to solve cryptographic problems. Some steps included in the mining operation are verifying data blocks and uploading transaction details to a blockchain ledger. Thus, crypto mining is simply acquiring cryptocurrency as a form of payment for a job completed.

Nvidia, which trades with the ticker symbol NVDA, is a company that can be used to mine cryptocurrencies with its hardware. A free pdf file from CFRA is available on Ally Invest’s page for Nvidia. NVDA has a four-star rating from the stock analyst, with an investment recommendation.

Despite the positive assessment, Nvidia is considered a high-risk company by CFRA. Its risk is owing to how much R&D is necessary to keep up with the competition.

If you want to actually earn DOGE, instead of buying it, you can opt-in for crypto mining. Besides, crypto mining is legal as long as you mine through legal platforms.

·         Cryptocurrency Options Strategies

Crypto options are financial derivatives that offer the holder the right to sell or purchase a cryptocurrency at a preset price known as the strike price before the expiration date.

There are two types of crypto options offered for purchase – a CALL and a PUT option. The holder of a CALL option has the right to purchase an asset at the strike price, while the PUT option allows the holder to sell an asset at a preset price.

There are countless cryptocurrency option strategies, but the following are the most well-accepted strategies to trade Dogecoin. 

  1. Butterfly spreads
  2. Straddles
  3. Bull and Bear Spreads

The butterfly CALL and PUT spreads are featured on the Ally Invest website. Therefore, with an Ally Invest securities account, you can trade your Dogecoin option spreads that generate profit when the primary stock goes sideways.

Conclusion

Ally Invest is known as a company that offers diversified financial services. The platform has established itself in the financial market as it allows its customers to invest their funds in stocks, bonds, option contracts, and ETFs. However, while providing this variety of financial services, Ally Invest does not offer investment in cryptocurrencies like Dogecoin.

Notwithstanding, if you have a brokerage account on Ally Invest, these assets can serve as avenues for Dogecoin trade through alternatives like blockchain ETFs, mining platforms, and crypto option strategies.


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