Dogecoin Investment Options For Canadians

Dogecoin is a peer-to-peer, open-source cryptocurrency that was launched in December 2013. It is considered a meme coin by some, and its value is often influenced by social media trends. Despite its lighthearted origins, Dogecoin has gained popularity as an accessible way to enter the world of cryptocurrency. In this article, we will discuss the best platforms and methods for investing in Dogecoin in Canada, including Newton, Bitbuy, and NDAX. We will also explore the unique risks and regulatory considerations associated with this volatile asset.

Dogecoin's price volatility

Dogecoin's price history illustrates this volatility. Since its launch in 2013, Dogecoin's value has experienced substantial peaks and troughs. For instance, in its first 15 days, Dogecoin's price soared by 1,061%, from $0.0002 to $0.0023. This was followed by a prolonged period of low trading activity, with its price falling below $0.001. Dogecoin then saw another significant price jump in March 2017, rising by 1,494% to a peak of $0.004. However, by June 2022, Dogecoin's value had dropped to $0.04908, its lowest point.

External factors, such as social media trends and celebrity endorsements, can also influence Dogecoin's price volatility. For example, the support of Tesla CEO Elon Musk and other celebrities in 2021 sent Dogecoin's value surging, with a 9,884% gain between January and May. Musk's continued tweets about Dogecoin have been shown to impact its price, with occasional tweets still affecting the market.

Additionally, Dogecoin's block reward schedule has contributed to price volatility. The random nature of block rewards, ranging from 0 to 1 million Dogecoin per block, created uncertainty and impacted the supply and demand dynamics. This schedule was changed in 2014 to a fixed system, where successful miners received 10,000 Dogecoin per block.

When investing in Dogecoin, it is essential to be aware of the market's volatility and the potential for rapid and significant price changes. Due to its volatile nature, investors must be prepared for potential losses as well as gains.

Trading fees and limits

Newton

Newton is a low-cost cryptocurrency trading platform with transparent prices and low trading fees. On average, their prices are 0.5–0.7% above spot at volumes of up to 3 BTC, making their overall price 3x lower than a leading competitor, who charges approximately 2.25% in trading fees. Newton also covers up to $5 per daily transaction in network fees.

Bitbuy

Bitbuy offers low transaction fees and the convenience of buying Dogecoin with Canadian dollars. Their new and improved UI on their web app is designed for any amount of Dogecoin, making trading CAD for Dogecoin intuitive and straightforward. Bitbuy also offers advanced trading through Bitbuy Pro and over-the-counter services for high-net-worth individuals and businesses.

Ndax

Ndax offers low trading fees of 0.2% for DOGE.

Coinberry

Coinberry has no deposit or withdrawal fees and a 0.5% trading fee, making it one of the cheapest services where you can buy Dogecoin in Canada. However, as a market maker, they will apply a spread to the asset.

Service reputation

When considering where to invest in Dogecoin in Canada, it is important to evaluate the service reputation of the platform you are using. While all of the services mentioned in this article are among the most trustworthy, it is important to note that not every Dogecoin sales platform is equally reputable. It is crucial to perform your own due diligence to reduce your risk.

One reputable platform for investing in Dogecoin in Canada is Bitbuy, a Canadian cryptocurrency exchange established in 2016. Bitbuy has earned a strong reputation for being a trustworthy and transparent operation, with its credibility enhanced by being the first exchange in Canada to conduct proof of reserve audits annually since 2019. Bitbuy offers a selection of over 20 promising cryptocurrency projects while being heavily regulated, providing users with a secure and reliable platform for their investments.

Another trusted option is Coinberry, a Canadian digital asset trading platform that has been in operation since 2017. Coinberry has established several highly-trusted partnerships, including being registered with FINTRAC as a Money Services Business, further bolstering its reputation in the industry. With no deposit or withdrawal fees and a competitive trading fee of 0.5%, Coinberry offers a secure, convenient, and well-trusted service for those looking to invest in Dogecoin.

Additionally, Coinsquare has established itself as a formidable player in the Canadian cryptocurrency space, known for its user-first philosophy and commitment to providing a seamless and intuitive trading experience. Coinsquare prioritises security with robust mechanisms, including advanced encryption techniques and rigorous authentication protocols, ensuring that users can transact with confidence. The platform also stands out for its transparent fee structure, enhancing trust and allowing users to make informed decisions.

Lastly, Netcoins, based in Vancouver, has earned a prominent standing as one of Canada's top-tier cryptocurrency exchanges. Netcoins is recognised for its intuitive platform design, making the often complex process of cryptocurrency trading more accessible for users of all experience levels. The platform's commitment to regulatory compliance further enhances its credibility, setting it apart in an industry marked by regulatory ambiguity and ensuring transparency and legal compliance.

Payment methods

When it comes to payment methods for purchasing Dogecoin in Canada, there are several options available. Here are some of the commonly accepted methods:

• Debit and Credit Cards: Some platforms, like Bitbuy and Coinberry, allow users to buy Dogecoin using their debit or credit cards. This provides a convenient way to purchase Dogecoin directly without having to go through an exchange.
• Wire Transfer: Another option for funding your account is through a wire transfer. This method allows you to transfer funds directly from your bank account to the exchange or platform. Ndax, for example, accepts wire transfers as a funding method.
• Bank Draft: In addition to wire transfers, some platforms like Ndax also accept bank drafts. This involves obtaining a physical or electronic draft from your bank, which can then be used to fund your Dogecoin purchase.
• Interac e-Transfer: Interac e-Transfer is a popular payment method in Canada, and it is accepted by several Dogecoin platforms, including Newton, Ndax, and Coinberry. This method allows you to transfer funds quickly and securely from your bank account.
• Cryptocurrency: In some cases, you may be able to purchase Dogecoin with another cryptocurrency. For example, you can use Bitcoin or a stablecoin like Tether (USDT) to buy Dogecoin on certain exchanges. This can be a good option if you already have other cryptocurrencies and want to diversify your portfolio.
• Cash: While less common, some platforms may also accept cash as a payment method. This typically involves meeting the seller in person and completing the transaction face-to-face.

It's important to note that different platforms may have their own specific payment methods, so it's always a good idea to review the available options before choosing a platform to ensure they support your preferred payment method. Additionally, keep in mind that some methods may incur additional fees, so be sure to review the fee structure of the platform before making a purchase.

Regulatory compliance

Canada has witnessed a surge in cryptocurrency trading in recent years, attracting both domestic and international exchanges. However, it is essential to recognize that not all platforms operate within the bounds of Canadian law. To ensure the safety and security of investors, regulatory authorities have implemented stringent compliance standards that all exchanges must adhere to. These standards encompass various aspects, including transparency, fraud prevention, and consumer rights protection.

One of the key consequences of non-compliance with regulatory requirements is a ban from operating in Canada. Notable examples include Binance, KuCoin, and OKX, which were prohibited from serving Canadian clients due to their refusal or inability to meet regulatory standards. This underscores the seriousness with which Canadian authorities view compliance and their commitment to upholding investor protection and market stability.

To navigate the evolving regulatory landscape, investors must prioritize due diligence when selecting a platform to invest in Dogecoin. Reputable exchanges such as Bitbuy, Coinberry, and Netcoins offer Dogecoin trading while maintaining strong regulatory compliance. These platforms are registered with Canadian regulators, adhere to stringent compliance standards, and provide robust security measures to protect their users' assets.

For instance, Coinberry, now merged with Bitbuy, is a registered Money Services Business with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), providing an extra layer of trust. Similarly, Netcoins is known for its commitment to security and regulation, offering a wide range of cryptocurrencies on a user-friendly platform. By choosing regulated platforms, investors can trade with confidence, knowing that their investments are protected within the framework of Canadian law.

Frequently asked questions