For more than a decade, Bitcoin (BTC) has been the dominating coin in the cryptocurrency market. Its price has increased over the years to become the most valuable digital coin. At the same time, other cryptocurrencies have appeared. Some of them have failed and disappeared. Others have stayed around for a long time. Dogecoin (DOGE) belongs to the latter.
DOGE was created as a fork from Litecoin (LTC) in December 2013. The creators envisaged it to be more of a joke than a real payment method. However, little by little, the light-heartedness of this cryptocurrency attracted a large following. 2021 was the year of DOGE. In a few months, the value of this coin skyrocketed.
As a result, many traders and investors hurried to add DOGE to their crypto investment portfolios. However, because of the extremely high volatility and price uncertainty of DOGE, most investors choose to hedge their gains. Since Bitcoin is considered a safe investment in the crypto sphere, swapping DOGE for BTC is a common transaction.
To safeguard your DOGE gains by purchasing BTC, you have to use a DOGE to BTC converter. However, to do it safely and profitably, there are a few things you have to understand first. Here you have five top pieces of advice to convert DOGE to BTC.
1. Learn How a Crypto Converter Works
Before you swap any coins, you have to understand how a crypto converter works. In most cases, it is very simple. You just have to do the following:
- Select the crypto pair of your interest (Dogecoin to Bitcoin in this case).
- Provide the address of a receiving wallet for your BTC coins.
- Send the amount of DOGE you want to convert to a wallet provided by the converter.
That’s all from your side. The converter will perform the transaction. For security, choose a non-custodial converter, which doesn’t store your assets or private keys.
2. Look for the Most Convenient Fees
Every exchange platform sets its exchange rates based on multiple factors. They also charge different fees for their service. To make the most out of your crypto swap, you have to look for the most profitable rates and lowest fees. Some platforms offer the possibility to look automatically for the most profitable rate in a pool of exchanges.
3. Research the Cryptocurrencies You Want to Swap
To determine the best moment to swap your Dogecoin gains, you have to research the performance of this coin. Some sites provide educational materials aimed at helping traders and investors. These sites provide price forecasts for different coins: Dogecoin price forecast, Ripple price prediction, and more. The more you learn about the coins you want to swap, the more profitable your swap will be.
4. Verify the Trading Limits
Some crypto converters impose minimum and/or maximum trading limits on the cryptocurrencies you want to swap. Check if such limits exist on the platform you have chosen for your transaction. If you plan on swapping a small amount of crypto, check whether this amount is larger than the minimum limit. Some platforms allow for limitless transactions.
5. Take Volatility into Account
When you swap cryptocurrencies, you have to pay attention to volatility to avoid losses. For instance, buying Bitcoin when its price is high would not be convenient. On the other hand, buying when the price is very low will be more profitable. To counter volatility, you should opt for a converter that offers transactions with fixed rates.