Crypto -

How do you buy dogecoin as regular stocks?

Dogecoin (DOGE) is a cryptocurrency, which means you technically can’t buy dogecoin as if it were a stock. This is because currency and stocks are different ways of investing - in other words, they’re to different asset classes. Because of this, the two asset classes are also taxed differently.

If you wish to buy dogecoin, you could then buy the cryptocurrency  directly. That way, your purchase will follow the exchange rate developments of the currency.

And you can do so through Lunar Block -  probably Denmark’s easiest platform for trading cryptocurrency .

Trading crypto is easy, and it’s just as easy to get started. Just download the Lunar app, and sign up to Lunar Block. Here, you need to complete a quiz to get to know the risks connected to buying and selling crypto.

And then you’re ready to trade dogecoin and other popular cryptocurrencies.

Download the Lunar app and sign up to Lunar Block

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

Would you prefer to trade dogecoin like regular stocks?

Because cryptocurrency and stocks are taxed differently, you could have an interest in investing in crypto as if it were stocks. Stocks are generally taxed more favorably for you compared to cryptocurrency.

Even if you can’t invest directly in dogecoin and crypto as if it were stocks, you could instead invest in some funds - ETFs or ETNs - who follow the rate of the crypto market in general.

Like that, you can make your portfolio emulate rate developments on cryptocurrencies, but benefit from the stock taxation.

Read more: How cryptocurrency is taxed .

What are ETFs and ETNs?

ETF stands for Exchange Traded Fund, while ETN stands for Exchange Traded Note. Both types try to follow the rate developments on a certain market - such as the dogecoin market.

When dogecoin goes up 33.233% in value , a successful ETF or ETN will also go up by 33,233%.

The difference between ETFs and ETNs

An ETF owns the stocks or assets it’s trying to follow. If you invest in a dogecoin ETF it would be in a fund, who also owns dogecoins. An ETN on the other hand doesn’t own the stocks or assets it’s trying to follow. An ETN works more like a bond of debt. If you purchase a dogecoin ETN, the issuer of the ETN will then be indebted to you. The debt is of the same value as the increase in value there’s been on the followed market.

Example:

You buy your way into an ETN, who follow dogecoin. Let’s say you invest 100 DKK.

Between April and November, dogecoin’s value increases by 80% - and thus the ETN owes you 80% of your investment, which is equivalent to 180 DKK.

But because these are bonds of debt, where there’s no real ownership over actual assets, you could risk losing your entire investment, if the ETN goes bankrupt.

With an ETF, it would rarely go this sideways. The ETF actually owns the assets - such as dogecoins - and can then choose to sell them in order to get capital to pay back you and the other investors.

On the other hand, one of the advantages with ETNs are, that they typically have a lower tracking error. Tracking error covers how well a fund manages to follow a certain index. If dogecoin increases by 85% and delivers the fund 85%, there’s a tracking error of 0%.

If dogecoin increases by 85% and delivers the fund 40%, there’s a tracking error of -45%. 

A tracking error of -45% can happen because the fund chose to invest a little more or a little less in a certain asset in their index.

Example:

Let’s say you buy your way into an ETF, which tries to follow the overall rate development for the most popular cryptocurrencies . For the sake of simplicity, let’s say that the most popular cryptocurrencies are bitcoin , ethereum and dogecoin - making it the rate developments for these three cryptocurrencies, that the ETF must follow.

If we take a closer look at the distribution of the collective market value for the three cryptos, we see that bitcoin makes up the majority of the value, then ethereum, and lastly dogecoin.

For instance, a distribution could look like this:

Bitcoin: 100,000 DKK

Ethereum: 70,000 DKK

Dogecoin: 30,000 DKK

Collective value: 200,000 DKK.

This means that bitcoin makes up 50%, ethereum 35%, and dogecoin 15%. A tracking error could then arise, if the ETF has weighed it’s investments differently than the actual distribution.

For example, the ETF could choose to wager a bit more on bitcoin. Like that, the ETF’s distribution could then be 70% on bitcoin, 20% ethereum and 10% dogecoin, for instance.

If bitcoin is performing poorly through a period of time, while ethereum and dogecoin is performing relatively well, a difference between the exchange rate developments will arise on the actual market and for the ETF.

The opposite could also be the case, where the EFF manages to beat the market. Here, we see a positive tracking error.

With the ETN, tracking errors are a rare occurrence. This is because the ETN, as mentioned before, doesn’t invest in actual assets. It’s more like a promise that they will pay out the rate development seen in a certain index. The concrete promise will be described in more detail in the ETN’s prospect. Here, you need to remember the running costs and fees which are connected to both ETFs and ETNs.

There are pros and cons with both types of funds, which you need to be aware of before you invest.

How do dogecoin ETF and ETNs work?

When you invest in ETFs or ETNs, it would sort of like a stock. This means that gains and losses are taxed by the applicable tax regulations for stocks. Here, your investments can either be taxed as income on equity or as capital income, and further after the asset liquidation principle or inventory principle. Exactly as you know it from the regular stock world.

You don’t have access to stock taxation, when you purchase dogecoin directly as a currency.Investing in currency and cryptocurrency is taxed as speculation.

Tip: Read more about the special rules for crypto that also apply to dogecoin here.

Buy dogecoin ETFs and ETNs through Invest

Do you want to invest in dogecoin ETFs and ETNs?

Lunar cooperates with Saxo. You’re investing through Saxo Bank, when you sign up to Invest - it just all happens directly from your Lunar app. Easy and convenient.

Log in to the Lunar app, sign up to Invest , and get started in a matter of minutes.

Remember, all stock trading carries a risk of losses.

Read more about Saxo’s work with crypto-ETFs and ETNs here .

When you’ve signed up, you can find all the exciting dogecoin ETFs and ETNs in your app. 

Get Lunar now

Or buy dogecoin as a crypto directly through Lunar Block

From your app, you can also sign up to Lunar Block, which is probably Denmark’s easiest platform for buying and selling dogecoin and other cryptocurrencies.

Here, you’er not investing in stocks, bonds of debt or funds - but instead your trading with dogecoins or other popular cryptocurrencies directly.

Buy dogecoin with Lunar Block

What you’re getting

  • The world’s leading cryptocurrencies
  • Everything in one app. Buy and sell without a wallet
  • Simple trading platform without buzzwords
  • A low, set trading price of 2,5% for Standard users, 1,5% for Premium users, and just 1% if you have Pro
  • No pointless fees
  • Best crypto prices across three of the largest exchanges
  • Guide to tax reporting to Skat  [Easy tax reporting]
  • Track price developments and set price alerts on currencies you follow

How to get started trading dogecoin

  • 1

    Download Lunar for free

    Go to App Store or Google Play and download the Lunar app. Find your photo ID, as you need that to sign up.

  • 2

    Sign up to Lunar Block in the app

    Find Lunar Block under “Products” and sign up. You’ll be asked to take a test about crypto first - among others things, it’s to see if you’re aware of the risks. You can learn more about the risks in the app before you take the test.

  • 3

    Buy dogecoin with a single swipe

    When we’ve approved you, you can buy crypto immediately. Choose your cryptocurrency in the app and buy with a single swipe.

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

We do not counsel

We do not advise on currencies and do not make recommendations for either buying or selling. We can provide factual information about the different currencies, but past price developments are not an indication of future developments.

No information from Lunar Block should therefore be considered as recommendations and all decisions are up to you alone.