How Canadians Can Invest In Dogecoin

Dogecoin is a peer-to-peer cryptocurrency that allows users to send money without the need for a middleman. It was created as a joke in 2013 by Jackson Palmer, an Adobe Inc. product manager, who was poking fun at the hype around other cryptocurrencies. Despite its lighthearted founding, Dogecoin has since gained popularity and become an icon backed by a meme-centric community. Canadians can invest in Dogecoin through online cryptocurrency exchanges such as Bitbuy, Binance, and NDAX. These platforms allow users to buy Dogecoin directly or trade other cryptocurrencies, such as Bitcoin or Ethereum, for Dogecoin.

Where to buy Dogecoin in Canada

Dogecoin (DOGE) is a peer-to-peer cryptocurrency that allows users to send money without a middleman. It is completely legal for Canadian citizens to hold, mine, and trade Dogecoins. While it is not available on as many exchanges as Bitcoin or Ethereum, it can still be easily purchased.

NDAX

NDAX gives you all the tools and support to buy and sell Dogecoin in Canada. You can fund your account with Canadian dollars via Interac e-transfer, Wire Transfer, or a Bank Draft. The platform also offers advanced trading options, such as buy or sell orders executed at a specific price, trailing stop market orders, and fill or kill (FOK) orders. NDAX's security standards are among the highest in the Canadian FinTech industry, with the majority of digital assets held offline in cold storage.

Binance

Binance is a popular cryptocurrency exchange that supports the purchase of Dogecoin. Users can buy Dogecoin with a credit or debit card, as well as other methods such as wire transfer, ACH bank transfer, and SWIFT. Binance offers high liquidity, friendly fees, and a mobile trading app.

Bitbuy

Bitbuy is another online cryptocurrency exchange that can be used to buy Dogecoin in Canada. Users can set up an account, fund it with Canadian dollars via Interac e-Transfer or bank wire, and then purchase Bitcoin. The Bitcoin can then be sent to the platform Binance, where it can be traded for Dogecoin.

Newton

Newton is a Canadian-based crypto app that can be used to buy and sell the most common cryptocurrencies with no fees. It offers a seamless withdrawal process, allowing users to withdraw funds directly to their checking account through e-transfer.

Coinsquare

Coinsquare is another platform that supports the purchase of Dogecoin in Canada.

Storing Your Dogecoin

After purchasing Dogecoin, it is important to store it in a secure cryptocurrency wallet. There are several types of wallets available, including software, hardware, and paper wallets. The Jaxx wallet is a highly recommended software wallet that is available for both Apple and Android users at no cost. For long-term investors, hardware or paper wallets are recommended as they keep the coins offline. The Ledger Nano S and Ledger Nano X are hardware wallets that support Dogecoin.

How to store Dogecoin

Once you have purchased Dogecoin, you will need to store it in a cryptocurrency wallet. There are several options for doing this, each with its own pros and cons. Here is a list of the most popular methods:

Hardware Wallets

Hardware wallets are considered one of the safest ways to store your Dogecoin. These are physical devices that store your private keys and allow you to manage your Dogecoin on a day-to-day basis. Examples include the Ledger Nano S and the Trezor One. These devices support a wide range of cryptocurrencies and offer multiple security features to protect your assets. They are durable, require a PIN code, and support two-factor authentication.

Desktop and Mobile Wallets

You can also use a combination of a desktop or mobile wallet with a hardware wallet for added security. The Exodus Wallet is a popular choice for this method. It is well-designed, user-friendly, and supports multiple cryptocurrencies and tokens. It can be used on Windows, Linux, Mac, iOS, and Android devices.

Official Dogecoin Wallet

The official Dogecoin Wallet is another option. It offers a desktop version, including a core wallet that downloads the entire blockchain and a lite version called MultiDoge for storing and transferring Dogecoin. The desktop versions are available for Windows, OSX, and Linux. There is also a mobile version for Android devices. However, it is important to note that the official Dogecoin Wallet does not support iOS, and it can only store Dogecoin.

Online Wallets

Online wallets are accessible from any browser and are convenient if you need access to your Dogecoin from various locations. However, they are generally not recommended due to security concerns. If you choose to use an online wallet, it is advisable to use one that encrypts your information, such as the Dogechain Wallet.

Paper Wallets

A paper wallet involves printing your private keys on a piece of paper. This method ensures that your private keys are not connected to the internet, protecting them from hackers. However, it is crucial to keep the paper wallet safe and make copies to store in secure locations. You can generate a paper wallet using websites like WalletGenerator.net.

Dogecoin's history

Dogecoin was created in late 2013 by software engineers Billy Markus and Jackson Palmer, who worked at IBM and Adobe Systems, respectively. The cryptocurrency was conceived as a joke, poking fun at the wild speculation in cryptocurrencies at the time. Dogecoin was officially launched on December 6, 2013, and its logo was based on the popular "doge" meme, featuring Kabosu, a female Shiba Inu dog.

Within the first two weeks, Dogecoin had established a dedicated blog and forum, and its market value reached $8 million, becoming the seventh-largest electronic currency in the world. The site became an instant hit, aided by Reddit, and within the first month, Dogecoin.com had over a million visitors.

Dogecoin was created using the open-source code from Litecoin, which was a fork of the Bitcoin blockchain. It was designed to be a peer-to-peer digital currency that could reach a broader demographic than Bitcoin, and to distance itself from the controversial history of other coins. Dogecoin introduced improvements such as faster access speeds and more affordable transactions.

In 2014, both founders left the development efforts, and a Dogecoin Core Development team was formed. Despite its satirical nature, Dogecoin quickly developed a massive and passionate cryptocurrency community, and it has been used for various fundraising events and charitable endeavours. For example, in 2014, the Dogecoin community raised approximately $30,000 to send the Jamaican bobsled team to the Sochi Winter Olympics.

Dogecoin has experienced significant price volatility, with its value surging and crashing multiple times since its launch. It has also been the subject of scams and thefts, with millions of coins stolen in a hack on the Dogewallet platform in December 2013. Despite these challenges, Dogecoin has persisted and, in 2021, it became the ninth-largest cryptocurrency by market capitalization.

Dogecoin's benefits

Dogecoin is a cryptocurrency that was created as a joke in 2013, inspired by the "Doge" meme featuring a Shiba Inu. However, despite its humorous origins, Dogecoin has grown into a recognised digital currency with several benefits:

Growing Community

Dogecoin has a growing community of holders and supporters. This growing community support is partly because its investors use it as an absolute value. These investors are also very active on social media platforms, sharing memes based on the crypto as part of its promotion.

Decentralised Exchange Compatibility

Dogecoin can be transacted and traded on decentralised exchanges. The Ren project, for example, has enabled it to work on the Ethereum blockchain platform and access the decentralised finance network. This indicates that Dogecoin is compatible with the emerging decentralised finance movement within the crypto market.

Easy Transactions

Dogecoin shares several similarities with Bitcoin, which means it provides certain benefits similar to Bitcoin. The crypto's coding is also quite similar to Bitcoin, making it secure and easier to transact. Dogecoin's block time is set at 1 minute, much faster than many legacy networks, enabling quicker transactions.

Listing on Stock Exchanges

Since its inception, some of the best stock and crypto exchange platforms have listed Dogecoin, including eToro, one of the biggest multinational crypto brokerages. This listing has substantially increased client demand to trade Dogecoin and has driven more traffic from clients who want to trade Dogecoin.

Unique Market Positioning

Dogecoin's inflationary status, unique mining feature, and ties to Litecoin are considered unique by several investors. As an early crypto entrant, Dogecoin's mining model is based on proof-of-work, meaning complex computational problems must be solved to validate transactions across the blockchain.

Dogecoin's purpose

Dogecoin is a peer-to-peer, open-source cryptocurrency. It was created in 2013 by software engineers Billy Marcus and Jackson Palmer, who were working at IBM and Adobe Systems, respectively. Dogecoin was created as a lighthearted joke for crypto enthusiasts, poking fun at the hype surrounding cryptocurrencies, particularly Bitcoin.

Dogecoin's logo is based on a popular meme of a Shiba Inu dog. The meme featured the deliberately misspelled word "doge" to describe the dog. The cryptocurrency's branding and lighthearted founding gave it a fun, accessible image that helped it gain a loyal community of supporters.

Dogecoin's blockchain has merit, with its underlying technology derived from Litecoin. It introduced some improvements on other cryptocurrencies, including faster access speeds and more affordable transactions. It also has the support of a robust community, popularly known as the "Doge Army."

Dogecoin can be used for payments and purchases, but it is not an effective store of value due to its unlimited supply. There is no maximum supply of Dogecoin, as there is with Bitcoin. Dogecoin miners earn 10,000 DOGE per block, and each block is created every minute, meaning 14,400,400 new DOGE tokens are created per day. This makes Dogecoin highly inflationary by design, and it is, therefore, more suitable as a transacting currency than a long-term investment.

Dogecoin has been popular for being used as a reward or "tip" for posting content on social media platforms such as Reddit and Twitter. It can also be used as a means of payment with online stores, merchants, restaurants, and retail environments that choose to accept it.

Frequently asked questions