The “people’s crypto”, Dogecoin, once launched as a joke, has now become one of the most established payment methods out there in the crypto space. Even some brokers previously offering only a few cryptocurrencies now give you access to Dogecoin too. What about Etrade though? Is Dogecoin on Etrade?
No, you cannot buy Dogecoin on Etrade. As a matter of fact, Etrade doesn’t offer any cryptocurrency right now. You will either have to buy it through an exchange like Binance, Kraken, and Coinbase or get it through a broker like eToro.
In this article, we will examine whether eToro is a good way to buy Dogecoin and I will also provide some alternatives for you to get access to it.
Sounds good? Let’s get started…
Is eToro Good for Trading Dogecoin?
Though famous for offering many crypto assets, eToro didn’t start as a crypto exchange. It is in fact a brokerage firm and they didn’t offer access to trading crypto for as long as a decade since they launched. However, 6 years after launching, they started offering CFDs for Bitcoin.
If you are looking to trade stocks and crypto, but you don’t have a brokerage account right now, I’d say that eToro is going to be good enough since it will help you have everything in one place.
If you, however, do have a brokerage account already, it may not be worth it and here’s why…
eToro, in contrast with crypto exchanges, doesn’t charge any fee. And that may seem good at first glance, but it’s actually not.
Since they don’t charge any fee, they will have to get their revenue a different way. And this different way is called spreads. The spread is simply the difference between the bid and ask price, or the price at which the buyer buys it and the one at which the seller sells it. eToro will basically charge you a price a bit higher than the ask price if you are looking to buy a cryptocurrency.
For example, since the spread is expressed as a percentage, let us say that they charge you a 1% spread for Dogecoin (that’s for the sake of simplicity, they don’t charge 1% for it). If you want to buy $100 worth of the asset and there’s a seller who can sell it to you at that price, you will actually have to pay $101 (1% of $100 = $1 spread). The $1 goes to eToro.
But here’s the deal. eToro charges 2.9% for Dogecoin. That’s insanely high and if you’re looking to trade the asset too frequently, it will probably not worth the trouble.
So here’s a few exchanges where you can buy Dogecoin if you decide not to go the eToro route…
eToro Alternatives for Buying Crypto
Binance is easily one of the most famous crypto exchanges in the world. It first launched in China in 2017 and then also launched in San Francisco for US residents.
Binance charges 0.1% for transactions and that’s what mainly makes the exchange so attractive. On top of that, you will also have the option to earn interest on your coins if you stake them for a while. The interest rate ranges between 0.5% and 10%.
There are many methods which they allow you to buy crypto with; credit cards, debit cards, bank deposits, and bank transfers. Just bear in mind that you will be charged a 4.5% fee if you choose to trade with your debit card.
As for security, they have a 2-factor Authentication system (2FA) and an asset fund they use as insurance if funds are ever stolen.
Last but not least, they allow you access to more than 50 crypto assets for you to choose from.
- Good security
- Affordable Fees
- Good Reputation
- More than 50 cryptocurrencies
- User-friendly desktop interface
- Bad customer service
- Not available for 7 US states
If you’re not very experienced in trading crypto, then you should consider Coinbase. When starting, you most likely won’t care for complicated data and graphs, and it’s a good thing that Coinbase won’t overwhelm you in that regard.
With Coinbase, you can buy crypto via bank transfers, bank deposits, credit and debit cards, and even PayPal. But the downside here is that they charge a $0.99 to $2.99 fee for transactions that are under $200 on top of the 0.5% fee they charge regardless.
Fortunately, Coinbase has FDIC insurance. That means that if the company goes into bankruptcy, you will not lose your money.
- FDIC insurance
- Easy access to Bitcoin
- Great variety of altcoins
- You can see all of your coins in one place
- Friendly user interface for beginners
- Custodial wallet
Kraken is a US-based exchange and it launched in 2011. Now, it offers more than 50 cryptocurrencies so you will have plenty of options if you decide to go with them.
With Kraken, there are 3 types of accounts: starter, intermediate, and pro.
If you’re just getting started with crypto, I recommend you go with the starter which allows deposits, exchanges, and withdrawal of crypto. You know, the basic stuff.
The fees average between 0.9% and 1.5%, depending on how big the trade is. That’s not too bad when compared to most crypto exchanges out there.
When it comes to customer service, there are some negative reviews about it, though.
As for security, you will need to provide an ID if you want to deposit.
- Good reputation
- Very stylish when it comes to the interface
- 7 fiat currencies
- More than 50 crypto assets
- Slow account verification process
- Not ideal for beginners
As I told you, Etrade doesn’t offer Dogecoin. But you can either choose to go with a crypto exchange to get access to it or open an account with eToro.
eToro isn’t great in terms of fees, but if you already have an account with them and you won’t be trading very frequently, this may counterbalance the transaction costs. If that’s not the case, you can go with any of the above exchanges I recommended…
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Thank you for reading and I’ll talk to you next time!
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