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Who would have thought that the market cap of a cryptocurrency modeled on a Shiba Inu dog as a joke would be worth more than Ford Motors or Kraft Foods? Well, that is exactly the space that Dogecoin (DOGE) found itself in over the weekend. For a brief period, DOGE’s market cap topped $50 billion, beating Ford and Kraft. Now, at a market cap of $42.6 billion, DOGE is still sitting very pretty.
Complete Guide: What is Dogecoin and How to Trade and Invest it in Canada?
What is Dogecoin?
Dogecoin is a cryptocurrency that runs on blockchain technology just like Bitcoin and Ethereum. It was created in 2013 as a joke and never traded over $0.0045 until December 2020 when Tesla’s Elon Musk started tweeting about the crypto. It quickly ran up to $0.4 on April 20, and is now trading at $0.33.
DOGE can be used for payments and purchases. Most people also use DOGE to tip meme creators online or hand out DOGE to people as a reward. It is not great as a store of value because there is no limit on the number of DOGE that can be mined. Millions of DOGE are created everyday which makes it a very inflationary cryptocurrency. In that sense, DOGE is more like Bitcoin Cash — as spending currency — rather than like Bitcoin.
Where Can You Buy it in Canada?
There are a couple of different ways you can buy DOGE in Canada. One is through an exchange using cash (debit/credit cards, dollars, bank transfers) and the other one is to buy it using other cryptocurrencies because the platform doesn’t let you buy DOGE with fiat. For exchanges that let you buy DOGE directly, we have used Binance as an example since it’s one of the most popular ones in the world.
Binance is one of the world’s largest liquid exchanges for cryptocurrencies, and that includes DOGE. It’s very simple to buy DOGE in Binance. You sign-up, get verified and you are good to go. You can buy DOGE using your credit card or you can use their fiat deposit function to add Canadian dollars in your Binance account. You can then start buying DOGE. Binance has a transaction fee of 1%-3.5% depending on your purchase medium: Debit card, credit card, or fiat. A major advantage with Binance is that you can buy DOGE from other traders using another crypto. This can reduce the transaction fees to as low as 0.1%.
Apart from Binance, other exchanges that let you buy DOGE directly with Canadian dollars are: NDAX, Crypto.com and Coinsquare. You can use USD to buy DOGE on these exchanges: Bitfinex and Indacoin. The process for these exchanges is the same as Binance. You open an account, get verified, transfer currency, and then start trading DOGE. One point to keep in mind while using Bitfinex is that DOGE is named as MDOGE with a conversion rate of 1 million. 1 MDOGE = 1000000 Dogecoin
The second method to trade DOGE in Canada is to use a platform where you can trade DOGE for other cryptocurrency but not trade it directly.
This is one of the easiest platforms to buy and sell DOGE with minimal fuss. While Founded in 2017, Coinberry allows you to trade multiple cryptos and has built a solid reputation for itself. It says, “Coinberry is the only FINTRAC registered and PIPEDA compliant digital currency trading platform trusted by Canadian Government municipalities.” It’s pretty easy to buy your first DOGE on Coinberry. You can either sign up through the web or download its app. You then need to verify your account. Coinberry says around 90% of its users are verified instantly, so unless you have some serious issues, this step should be a cinch. You can start trading right away once you are verified.
You can buy DOGE right away on a multitude of external wallets using Bitcoin purchased on the Coinberry platform and then move it to an external wallet of your choice. You can Buy Bitcoin with Coinberry, immediately transfer it and then trade for DOGE, Dogecoin elsewhere.
Newton and Shake-pay are crypto-trading platforms, similar to Coinberry, that let Canadians buy Bitcoin on their platforms, transfer it to an exchange (like Binance or the other ones mentioned), and then trade them for DOGE. These platforms claim that they have very high levels of security. They are useful for holding DOGE, and the process to buy them is quite simple. They are good options if you are a trader who is consistently looking to trade DOGE and other cryptos in large quantities and doesn’t want to pay huge commissions or transaction fees.
Newton doesn’t charge any fees for crypto-trading, and that has been a huge selling point for the platform. Shakepay is licensed as a Money Service Business by FINTRAC and the AMF to operate in all Canadian provinces and territories.
Key points to keep in mind about DOGE
DOGE is widely available and easy to trade.
Right now, it has a very vibrant investor/trader community, no thanks in small part due to Elon Musk’s interest in DOGE.
DOGE is a great crypto to trade regularly. However, because there is no limit on DOGE production, it might not be the smartest option to HODL DOGE.