Please ensure Javascript is enabled for purposes of website accessibility

What Can You Do With Dogecoin?

By Trevor Jennewine - Updated Apr 23, 2021 at 3:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here's what you can (and can't) do with the popular cryptocurrency -- and why it matters.

Dogecoin (DOGE -4.53%) has captured the attention of the investing world, though it's had a little help from some well-known billionaires. Elon Musk has referred to Dogecoin as "the people's crypto" and tweeted that SpaceX would put a literal Dogecoin on the moon. Mark Cuban told Forbes that Dogecoin was "the best entertainment for your buck" and noted that he purchased a few dollars' worth of Dogecoin for his son.

This kind of publicity, along with a frenzied following on Reddit, has sent Dogecoin's value soaring. At Friday morning's prices, it's up more than 300% over the past month -- and in the last year, it has surged more than 10,000%.

But for all the hype, what can you actually do with Dogecoin? Let's take a look.

A Shiba Inu dog like the one in the doge meme.

Image source: Getty Images.

Things you can do with Dogecoin

If you're looking for things to do with Dogecoin, you'll first need a place to buy the currency. This is the easy part. Binance  and Kraken -- two of the top-ranked crypto exchanges, according to CoinMarketCap -- both support Dogecoin, as do many others.

After you have tokens, you might want to spend them. This is where things get a little more difficult, but it's still possible.

Last year, Mastercard partnered with BitPay to launch a prepaid crypto card. In order to use the card, you'll first to fund a BitPay Wallet with a supported cryptocurrency. Once this is done, you can use the BitPay Card to spend the balance anywhere Mastercard is accepted. Notably, the company added support for Dogecoin this March. In other words, consumers can now use the Shiba Inu-inspired currency to make purchases online or in stores.

But wait, there's more. BitPay recently added support for Apple Wallet, meaning consumers can store their BitPay Card in their iPhone and fund Apple Pay purchases with crypto. In other words, if you want to use your smartphone to make Dogecoin-funded purchases, now you can.

There's a downside to the BitPay Card, though. It's only available in the United States. Other crypto payment cards exist for consumers in Europe or Asia -- for instance, the Mastercard-backed Wirex Card and Visa -backed Binance Card -- but neither of these support Dogecoin.

Things you can't do with Dogecoin

Coinbase is the most popular cryptocurrency exchange in the United States, and it became the first major crypto business to go public earlier this month. Notably, Coinbase has achieved market-leading scale, storing over 11% of all crypto assets in existence on its platform. However, it doesn't offer support for Dogecoin. That may seem trivial, but it actually matters a great deal.

Coinbase has a more stringent vetting processing than many exchanges. Users can only invest in 53 different cryptocurrencies and store roughly 90 crypto assets on the platform. For reference, that's less than 1% of the 7,500 crypto assets that exist today. Dogecoin's absence underscores management's lack of confidence in its long-term potential. And given Coinbase's scale, that's a serious problem.

Likewise, fintech PayPal has partnered with crypto brokerage Paxos to bring support for digital currencies to the PayPal and Venmo mobile apps. More important, PayPal recently launched Checkout with Crypto, allowing consumers to fund purchases with cryptocurrency. Eventually, the company plans to support this service for all of its 29 million merchants. That's a big deal: PayPal's support of crypto payments is a momentous step toward mainstream adoption.

But once again, Dogecoin didn't make the cut. Currently, PayPal's platform supports just four digital currencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

Last but not least, Square's Cash App is even more exclusive -- it only supports Bitcoin. That's not surprising, though. In 2018, Jack Dorsey expressed his belief that Bitcoin could be the world's single currency by 2030.

A final word

Despite surging popularity, Dogecoin still lacks mainstream utility. That could change in the future, especially if it remains in the spotlight. But there's no guarantee that will happen.

Investors should also note that, despite Musk's penchant for making puns, he has clarified his Dogecoin comments as jokes. Likewise, Cuban has expressed his belief that Dogecoin has no intrinsic value. So if you want to buy a few tokens for fun, just know you're basically buying a lottery ticket. If you're actually looking to invest in cryptocurrency, there are better ways to do so.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dogecoin Stock Quote
Dogecoin
DOGE
$0.06 (-4.53%) $0.00
PayPal Holdings, Inc. Stock Quote
PayPal Holdings, Inc.
PYPL
$71.47 (-0.49%) $0.35
Block, Inc. Stock Quote
Block, Inc.
SQ
$63.84 (-2.68%) $-1.76
Bitcoin Stock Quote
Bitcoin
BTC
$19,183.86 (-4.77%) $-960.36
Ethereum Stock Quote
Ethereum
ETH
$1,027.11 (-8.32%) $-93.16
Litecoin Stock Quote
Litecoin
LTC
$50.62 (-3.36%) $-1.76
Bitcoin Cash Stock Quote
Bitcoin Cash
BCH
$98.98 (-5.91%) $-6.22
Coinbase Global, Inc. Stock Quote
Coinbase Global, Inc.
COIN
$49.75 (-2.79%) $-1.43

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
319%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.