Basic Introduction

Dogecoin was launched by software engineers Billy Markus and Jackson Palmer in December 2013, based on the popular Shiba Inu meme, aiming to make digital currency more fun, friendly, and approachable. Similar to Bitcoin, Dogecoin is also a digital currency that can be used for peer-to-peer transactions, mainly for small payments and community donations. As of the time of writing, the total circulation market value of DOGE is 48.43 billion, and there is no hard cap on the total supply.

With its low unit price, strong community culture, and meme influence, DOGE has long been respected by the community, and users have continuously called for Robinhood to list the token. Finally, Robinhood officially supported Dogecoin trading in April 2021. As a trading platform that is friendly to fiat deposits, Robinhood provides convenient recharge channels for USD, EUR, etc., greatly reducing the participation threshold for retail investors.

After the official launch, with a large number of users purchasing DOGE through Robinhood, the market value of Dogecoin exceeded 90 billion US dollars in May 2021, ranking among the top five cryptocurrencies by market value. It quickly became one of the cryptocurrencies with the highest trading volume on Robinhood, and the increased trading demand even caused multiple platforms to crash multiple times due to overload, making it one of the most influential community-driven phenomena in the history of the cryptocurrency market.

Robinhood has been offering DOGE coin trading since 2021 (Image source:Nypost)

Trading Features

Robinhood adopts a zero-commission trading model, which has obvious cost advantages compared to the order or transaction fees commonly charged by traditional cryptocurrency exchanges, especially suitable for high-frequency trading and short-term investors. In terms of trading environment, Robinhood relies on a simple and intuitive operation interface, allowing users to quickly complete transactions without the need for complex order type selection or in-depth market analysis. In addition, the platform provides convenient fiat direct purchase function, allowing users to directly purchase DOGE and other cryptocurrencies with USD, EUR and other fiat currencies, without the tedious process of managing on-chain wallets, calculating gas fees, or transferring between exchanges, thereby reducing the entry barrier for novice users and making the cryptocurrency investment experience closer to traditional stock trading.

Robinhood currently supports trading 22 mainstream cryptocurrencies and embraces the cryptocurrency market. Compared to traditional trading platforms, Robinhood provides compliant fiat deposit channels and a convenient trading experience, allowing users to easily participate in cryptocurrency asset investment. Whether mainstream currencies or popular meme tokens, users can buy and sell on the same platform without the need to manage additional on-chain wallets, reducing the entry barrier for retail investors.

Currently, Robinhood supports trading in 22 cryptocurrencies (image source:Robinhood App Screenshot)

However, on the other hand, there are certain limitations to trading DOGE on Robinhood. Due to the platform’s use of a non-custodial wallet mechanism, users cannot directly control the private keys, meaning that the actual ownership of DOGE assets lies with Robinhood rather than the users themselves, which contradicts the concept of decentralized cryptocurrencies. Additionally, Robinhood only gradually introduced the deposit and withdrawal functions for DOGE in 2022, so prior to that, users could only buy and sell within the platform. Even though withdrawals are now supported, there are still limitations such as withdrawal speed, which can be inconvenient.

Trading Steps

1. Install the application and register

Users need to download the official Robinhood app from the app store or visit the Robinhood website first. robinhood.comRegister.

During the process of registering a Robinhood account, users need to provide their email, phone number, and set a login password. At the same time, they need to go through identity verification (KYC) and submit a valid government-issued identification document (such as a passport or driver’s license).

1. Link Bank Account

After completing the registration, users need to link their bank account, credit card, or debit card to the Robinhood platform to enable fiat currency deposits. Please note that Robinhood supports direct deposits in USD and offers various payment methods such as ACH transfers and credit card top-ups.

1. Enter Dogecoin trading page

Enter “Dogecoin” or “DOGE” in the Robinhood search bar to access the DOGE trading page, where you can view the price trend, market data, and trading depth of the currency, and use the basic analysis tools provided by Robinhood to make investment decisions.

Robinhood’s Dogecoin one-click trading page (Image source:Robinhood application screenshot)

1. Official Trading

On the DOGE trading page, users can select ‘Buy’ and enter the desired amount or quantity of tokens to purchase.

Robinhood supports market orders and limit orders, with market orders being executed immediately at the current market price, while limit orders allow users to set a target buy price. After confirming the order, click ‘Submit’ to complete the transaction.

1. Monitor the position

After the transaction is completed, users can view the position, quantity, and profit and loss of DOGE on the ‘Portfolio’ page. Robinhood provides price alert function, users can set specific price points to receive notifications when DOGE price fluctuates, facilitating adjustment of trading strategy.

Robinhood offers a variety of technical indicator support (source: Robinhood app screenshot)

1. Deposit and Withdrawal

Robinhood supports DOGE deposit and withdrawal functions. Users can withdraw DOGE to their personal crypto wallets (such as MetaMask, Ledger) or other exchanges. If users want to convert profits back to their fiat accounts, they can choose to sell DOGE and withdraw to their bank accounts. Robinhood supports ACH withdrawals and instant transfers (additional fees may apply).

Controversial Incident

In May 2024, Robinhood platform faces SEC accusations.

On May 4, 2024, Robinhood received a Wells notice from the U.S. Securities and Exchange Commission (SEC), accusing the platform of not allowing customers to withdraw cryptocurrency from their personal accounts between 2018 and 2022. This warning indicates potential enforcement action against its cryptocurrency trading on the platform, amid SEC’s increased regulatory scrutiny of U.S. cryptocurrency companies.

According to the statistics of the on-chain tracking platform BitcoinSensus on May 8th, due to the impact of regulatory turmoil, users withdrew a total of 164 million Dogecoins from the Robinhood platform, with a total value of approximately $25 million. In response, Robinhood CEO Vlad Tenev stated on CNBC Last Call, ‘Despite having had 16 formal meetings with the SEC and sincerely seeking to register as a Special Purpose Broker-Dealer (SPBD) to support cryptocurrency, it is regrettable that the agency ultimately chose to promote regulation through enforcement.’

Robinhood has received a Wells notice from the SEC (Image source:SEC Wells)

In November 2024, Robinhood resumes DOGE trading.

In September 2024, Robinhood reached a $3.9 million settlement with the state of California, restoring Dogecoin’s deposit and withdrawal functionality on Robinhood Crypto and offering incentive activities aimed at enhancing user trust and encouraging them to re-engage in cryptocurrency trading on the platform. In November 2024, Robinhood Crypto EU announced support for DOGE token transfers and deposits, and launched an activity offering a 1% bonus for depositing DOGE before November 30th to attract users to re-engage.

In November 2024, Robinhood EU Region Supports DOGE Trading (Image Source:https://x.com/RobinhoodCrypto/status/)

Risk Warning

Regulatory risks: Robinhood was accused by the U.S. Securities and Exchange Commission in 2024, and there is still a possibility of further tightening of regulatory policies in the future. If relevant agencies introduce new compliance requirements, restrict or change the platform’s operating model, or even affect the trading function of Dogecoin on the platform, investors need to pay close attention to regulatory dynamics to deal with potential market impacts caused by policy changes.

Liquidity Risk: In the event of market volatility or extreme market conditions, there may be a shortage of liquidity. In addition, Robinhood uses a non-custodial wallet mechanism, which means that users do not have direct control over the private keys, and the actual ownership of the assets is controlled by the platform, not the users themselves. To reduce the potential risks of centralized trading, investors should avoid excessive reliance on a single platform, diversify asset management, and improve the flexibility and security of funds.

Market volatility: As a meme token, Dogecoin has a high price volatility and is easily influenced by market sentiment and social media hype, so market participants should be cautious about short-term price fluctuations and avoid excessive speculation.

Conclusion

As a compliant cryptocurrency trading platform, Robinhood has demonstrated certain advantages in Dogecoin trading, such as zero-commission trading, convenient fiat deposit channels, and user-friendly operation experience, making it an important trading platform for many retail investors. However, the factors of non-custodial mode, withdrawal restrictions, and regulatory risks cannot be ignored. With the continuous evolution of the Dogecoin ecosystem and the dynamic changes in the regulatory environment, Robinhood’s future cryptocurrency trading services may face more challenges. When using the platform to trade DOGE, investors should closely monitor market trends, assess risks rationally, and make wise decisions based on their own investment strategies.