techsupport Dogecoin (DOGE) has an amusing origin story because it was created as a joke in 2013 by Billy Markus and Jackson Palmer, software engineers from IBM and Adobe. The creators just wanted to see if they could make their cryptocurrency, and so they did.
Dogecoin uses the same blockchain technology, code, and public ledger as other cryptocurrencies, like Bitcoin. But it is not as encryption-heavy as Bitcoin, so it works more like Litecoin, which has a lower hash rate.
That means that DOGE is a much easier coin to mine and to use peer-to-peer. It also means that DOGE has never come close to the value of Bitcoin or Ethereum. However, its recent popularity has inspired many to invest in the coin. There are many ways to buy cryptocurrency in Canada, including Dogecoin.
Tips for Buying Dogecoin in Canada
Dogecoin, the cryptocurrency that began as a joke, has become a popular digital asset with a dedicated following. If you’re in Canada and interested in buying Dogecoin, here’s a comprehensive guide to help you navigate the process.
Choose a Reputable Exchange: Select a trustworthy cryptocurrency exchange supporting Dogecoin trading in Canada. Look for platforms with a good reputation, robust security measures, and competitive fees.
Create an Account: Sign up for an account on your chosen exchange. It typically involves providing personal information and verifying your identity per regulatory requirements.
Deposit Funds: Once your account is verified, deposit Canadian dollars (CAD) or another supported currency into your exchange account. You can usually do this via bank transfer, credit/debit card, or other payment methods accepted by the exchange.
Find Dogecoin: Navigate to the trading section of the exchange and search for Dogecoin (DOGE) among the listed cryptocurrencies. Once you’ve found it, you’ll be able to see its current price and trading pairs.
Place Your Order: Decide how much Dogecoin you want to buy and place your order. You can choose between market orders, where you buy it at the current market price, or limit orders, where you specify the price you’re willing to accept.
Secure Your Investment: After purchasing Dogecoin, consider transferring it to a secure wallet for added security. Hardware wallets or reputable software wallets are recommended for storing your cryptocurrency safely.
Stay Informed: Keep yourself updated on Dogecoin news, market trends, and price movements. Cryptocurrency markets can be volatile, so staying informed will help you make informed decisions about buying, selling, or holding your Dogecoin investment.
The Rise of Dogecoin
DOGE has never been a costly currency, but in May of 2021, people started giving the coin much more attention. Previously, the cash remained steadily on the market with a value of around $0.35 US. But in May 2021, the currency moved up to over $0.75 US.
Interestingly, neither of the original creators work on the project anymore. Markus reportedly sold all of his holdings in 2015 and used his earnings to buy a used Honda Civic.
“The idea of dogecoin being worth 8 cents is the same as GameStop being worth $325,” says Markus. “It doesn’t make sense. It’s super absurd. The coin design was absurd.”
Nevertheless, the coin gained mass appeal and has a market value of nearly $60 billion US.
Value of Social Trading
Why did Dogecoin suddenly gain such popularity? One answer is through the power of social trading. Social trading plays a vital role in any market because for people to invest in an asset, they need to know about it and understand its market performance.
So, social trading harnesses the power of social media. And, as the coin gained popularity, it remained in a relatively steady-state on the market.
In May of 2021, Elon Musk started talking about DOGE and posted that it is the “people’s crypto.” Musk is an outspoken supporter of cryptocurrencies and recently purchased $1.5 billion US of Bitcoin. Tesla now accepts BTC as a method of payment.
After Musk mentioned Dogecoin to his nearly 45 million Twitter followers, people started buying. So much was the hype that Robinhood, a cryptocurrency exchange, had a network overload, and the site was down several hours after the tweet.
Buy DOGE
Buying DOGE is just like buying any other cryptocurrency. Interested investors can buy DOGE peer-to-peer. The only thing you need is a digital wallet. But the easiest way to procure any cryptocurrency is through managed or centralized exchanges.
To get a hold of Dogecoin, create an account with an exchange, verify your account, add fiat currency to your digital wallet, and purchase the desired amount of DOGE.
Dogecoin isn’t sold on all exchanges. Although, given its recent rise in popularity, we may see more deals in cryptocurrency of sale.
Here are three exchanges in which Canadian users can buy cryptocurrency. All of these exchanges have KYC requirements. However, opening an account and buying and trading cryptocurrency does not usually take more than 24 hours.
Coinberry
Coinberry is a Canadian exchange established in 2017. Their commission fee for cryptocurrency transactions is between 0% and 2.5%. The total cost is based on the spread between the rate offered and the actual purchase price.
Kraken
Kraken also operates in Canada and sells Dogecoin. They offer competitive commission rates, around 1%, but they vary based on the size of your purchase.
Binance
Binance is a global exchange, enabling peer-to-peer transactions, which means you may get a better price for DOGE. You can purchase DOGE with fiat currencies, including CAD, or with other cryptocurrencies.
The exchange charges between 1% and 3.5% for direct purchases. Or as low as 0.1% if you want to purchase another cryptocurrency from other traders on the exchange.
Remember to conduct thorough research and exercise caution when investing in cryptocurrencies. While Dogecoin has gained popularity, it’s essential to understand the risks involved and only invest what you can afford to lose.
By following this guide, you’ll be well-equipped to buy Dogecoin in Canada and participate in the exciting world of cryptocurrency trading.
