Dogecoin is having its day in the sun, and it might be the publicity it needs to prove the validity of a cryptocurrency just like it. The coin had a steady run in May 2021, where its value increased several hundred percent to $0.70. Since then, the coin’s price has dropped but remains the 4th most popular cryptocurrency on the market. As of now, about 129 billion Dogecoin are in circulation, and there is no set maximum supply, with a market cap of $57 billion.
As of June 2021, the token fluctuates between $0.20 and $0.35. At this price, the coin demonstrates about a $0.05-$0.10 return. Given its currency popularity, it is possible to make a profit by trading DOGE. Determining the value of cryptocurrencies is always a tricky analytical process. Cryptocurrencies are inherently speculative and, therefore, volatile. Neither volatility nor speculative values are the negative qualities that many detractors of DOGE would have you believe.
If you want to invest in DOGE, now may be a good time, as the price has dropped from $0.70 to $0.30 but still offers a return. To buy DOGE, you need a digital wallet to hold your cryptocurrency and to find an exchange where you can buy crypto in Canada. Ease and affordability are on DOGE’s side. Another reason you may want to consider investing in DOGE is that the coin is designed with the same code and blockchain architecture and code as Bitcoin. But UNLIKE Bitcoin makes much faster transactions. DOGE is a much more useable coin because transactions are faster, which means they are cheaper, a perennial challenge that faces Bitcoin’s SHA-256.
Dogecoin also uses the Proof of Work (PoW) consensus algorithm, like Bitcoin. PoW consensus requires miners to approve Dogecoin transactions, which maintains the integrity and security of the network. Because DOGE does not have as high a hash rate as Bitcoin, it means that users can mine with less power. Mining Bitcoin is much more competitive and expensive.
Scroll to the end of this article to see a list of exchanges where Canadians can buy DOGE.
The Dogecoin Origin Story
Billy Markus and Jackson Palmer, software engineers from IBM and Adobe, created DOGE in 2013. When you google Dogecoin, you’re meet the smiling face of a Shiba Inu dog. The dog meme is one of the reasons that DOGE gained popularity from the start. The meme quickly took on a life of its own.
Today, the meme is part of the success and notoriety of the coin. Doge’s Shiba Inu dog was even named Meme of the Year in 2013. Its popularity is primarily due to the attention that the meme has recently received from Tesla’s owner. The inspiration for the coin’s creation was the DeFi dream of a democratic economic system or a rich quick scheme. The creators wanted to see if they could create their own cryptocurrency, and so they made Dogecoin. They had no idea that in May 2021, Elon Musk’s mention of Dogecoin on Saturday Night Live would cause the surge it did. In fact, the creators reportedly do not even own much (or any) of the coin currently.
Where and How to Buy DOGE
Step 1. Create an account with an exchange that sells DOGE
Step 2. Deposit funds into your account/digital wallet
Step 3. Buy DOGE
Before you buy DOGE or any other cryptocurrency, you need to have a digital wallet with loaded funds available on it. There are many options out there for digital wallets; Metamask is a trusted option. Digital wallets are a software extension for your browser. Most exchanges offer propriety wallets that are easy to use. Using a digital wallet works a lot as your online banking app does.
If you buy DOGE with another cryptocurrency, you need to find accepted trading pairs on the exchange you’re using. Of the list below, Binance and Kraken have the largest selections of trading pairs. But the other exchanges listed all sell top cryptocurrencies and are available for Canadians to buy DOGE. Because many of these are Canadian companies, including BitBuy, Coinberry, Newton, and Wealthsimple, users can fund their accounts with free e-transfers directly from their Canadian bank accounts.
A note to Canadian Buyers
Cryptocurrencies are entirely legal in Canada, and they are also taxable commodities. To buy cryptocurrencies in Canada, users must comply with the KYC (know your customer) requirements. For the most part, that means proof of ID, addresses, and a verification process. This process usually takes under 48 hours, and many of the listed exchanges have been approved by FINTRAC, a Canadian agency.
Exchanges to Buy DOGE in Canada
Binance: By far, one of the largest selections with over 500 cryptocurrencies.
Kraken: 70+ cryptocurrencies, founded 2011
Huobi: 100+ cryptocurrencies, founded in 2013
Coinberry: Established 2017
Bitbuy: Established 2019
Newton: a no-fee exchange founded in 2018
Wealthsimple: Wealthsimple began with traditional assets and has quickly expanded to cryptocurrencies. With this app, cryptocurrencies must be held in a non-registered account with Wealthsimple Crypto.