Dogecoin is a cryptocurrency that was first established in 2013 by Billy Markus and Jackson Palmer. This website, which contains the emblem of a Shiba Inu, was first established as a joke. Dogecoin’s popularity – as well as its value – is increasing. DOGE is now one of the most popular cryptocurrencies on the market. It is a decentralized, peer-to-peer digital currency option that allows you to transmit money to anybody worldwide through the internet.
Dogecoin employs a proof-of-work consensus system, similar to Bitcoin, although it does it with Scrypt technology, which requires less mining energy than Bitcoin does. According to some, a “pump and dump” strategy has been compared to the dramatic spike in the price of Dogecoin that occurred last year.
Even though it is still considered a joke money by some, Dogecoin has several practical applications. This post will explain how to buy Dogecoin in Canada.
- Set Up a Doge Wallet
Software programs that store your keys – the digital codes that allow you to spend your DOGE – are called DOGE wallets. Dogecoin wallets are available in a variety of styles and sizes. In general, you have the option of choosing between hot storage (which is linked to the Internet) and cold storage (which is not connected to the Internet).
As soon as you learn how to buy Dogecoin in Canada and make your first purchase, you can keep it in the exchange’s wallet or move it to another wallet that you control. Storing your Dogecoin in a cold wallet is a safer choice than storing it in a hot wallet, but it is less convenient than storing it in a warm wallet.
Because a hot wallet is connected to the Internet, it is intrinsically more vulnerable to theft and loss than a traditional wallet. On the other hand, they are handier and allow for speedier cryptocurrency trading transactions.
- Where to Buy Dogecoin
While investors can acquire exposure to crypto assets through mutual funds or exchange-traded funds (ETFs), there are currently no ETFs or mutual funds that give exposure to Dogecoin. The only method for investors to get into Dogecoin is to own it directly, and the quickest and most convenient way to do so is through a cryptocurrency trading platform.
There are a number of platforms operating in Canada and the United States that offer cryptocurrency purchases in Canadian dollars. Before you make a purchase, thoroughly research the terms and conditions, features, security procedures, technology, transaction fees, funding choices, and transfer and withdrawal processes of each platform you are considering.
- Create and Verify Your Exchange Account
Following your decision on which exchange to use, you’ll need to establish an account and verify your identity to comply with regulatory rules and for your own security. The majority of exchanges will want you to provide your name, date of birth, and mailing address. Some companies may ask you to provide a phone number to safeguard your account using 2FA. It is possible that further identification, such as a photograph of you holding your driving license, will be requested.
- Figure Out How Much You Want to Spend
In the same way that many other cryptocurrencies are subject to price fluctuation, Dogecoin is no exception – especially if a popular celebrity tweets about it. As with any type of investment you are making, you should only spend money that you are willing to lose if you are making it.
- Funding Your Account
If you want to deposit fiat currency (CAD), you can do so by transferring money from your bank account. Funding your account using a credit card and Interac electronic transfer, PayPal, or another method may be feasible depending on the exchange. It may take several days for funds to be processed and available for use in the purchase of Dogecoin. In the event that you already have cryptocurrency in your wallet, you can fund your account by transferring those coins.
- Making Dogecoin Purchases
You can acquire Dogecoin if you have a confirmed account and money in your account. If you are using an exchange, it may be feasible to set up recurring orders that will automatically purchase additional Dogecoin on a regular basis, allowing you to take advantage of dollar-cost averaging.
- Is Dogecoin a Good Investment?
Because cryptocurrencies are still in their infancy in the world of investing, it’s difficult to provide a definitive response to this issue. However, it’s important to remember that cryptocurrencies are volatile, and their prices can fluctuate dramatically.
If you intend to purchase Dogecoin, be prepared for the emotional roller coaster accompanying it. In the event that you are unsure about your ability to deal with these situations, trading and investing in cryptocurrency may not be the best choice for you.