Although there are dozens of different types of cryptocurrencies out there, one that seems to stand out is Dogecoin. What initially started out as a prank has now turned into something so much more. Dogecoin is based on an internet meme that centers a picture of a Shiba Inu dog with text written in comic sans, and its creators certainly did not expect Dogecoin to be what it is today. If, like many people, you are wondering how to buy Dogecoin in Canada, keep reading.
- Create an Account
Before you can purchase any form of cryptocurrency, you must first create an account on a cryptocurrency exchange. There are dozens of Crypto exchanges to choose from, and they all have something different to offer so be sure to research them all before choosing one. When creating the account, you should have on hand a proof of ID such as a driver’s license or password so that your identity can be verified before creating the account. For you to start acquiring Dogecoin, you must fund your account with your selected form of currency. Keep in mind that you may acquire some charges along the way.
- Choosing Your Investment Size
One of the other things to consider when learning how to buy Dogecoin in Canada, is to decide how much to invest in it. If you are working with a financial planner, they may generally recommend investing no more than 3% to 5% of your money. This is ideal because it is an amount you are willing to lose should something happen that puts your investment at risk. Investing is a risk to take because you never know just how much Dogecoin’s worth could change in an instant.
- Order Your Dogecoin
To get your Dogecoin, you must first log into your crypto exchange or brokerage account to begin. From there, you can simply search for Dogecoin or DOGE in the search bar and then add the dollar amount you’d like to spend or the number of Dogecoins you are planning to buy. Again, there may be some trading fees involved in this process ranging from 0.05% to 5% per trade. There are, however, certain investment apps that offer commission-free crypto trades so you can always look into those.
- Get a Crypto Wallet
If you’re not familiar with cryptocurrency, a crypto wallet is essentially software or physical devices that contain the keys or passwords that give you access to your crypto currency balance. These passwords or keys are what allow you to send, receive, and spend cryptocurrencies—take Dogecoin for example. Crypto wallets are a great form of added security outside of the crypto exchange or brokerage platforms. The reason people look to store these keys elsewhere is because crypto wallet manufacturers claim to offer higher levels of protection than exchanges or brokerages do. When so much is on the line, you want to be able to have as much security as possible.
- Mining Dogecoin
If you want to get Dogecoin the hard way, you can simply choose to mine it. This involves going into dedicated computer machines, powering processors in a global competition to solve cryptographic puzzles at the cost of computing power. The person who manages to solve the puzzle first gets to add a new block to the blockchain and is rewarded with some additional Dogecoin in what is called a block reward. The miners who solve the puzzles are essentially rewarded with Dogecoin instead of having to purchase it like everyone else.
Purchasing Dogecoin directly is probably the best way to get it, but you can also trade for it. All you need to do is have another valuable form of cryptocurrency in your possession to trade with. Of course, this can be pretty difficult if you are just starting out in the world of crypto. In this case, your best bet would be to purchase the Dogecoin directly from the crypto exchange.
As mentioned previously, the easiest way to get Dogecoin is by purchasing it. Funding your account once you have opened it is essentially the only step that you need to take to get your hands on some Dogecoin. This can be done by transferring from your bank account directly into your crypto account. Alternatively, you can fund your wallet with yet another form of cryptocurrency and then convert it to CAD or directly to the other crypto you wish to buy.
As you can see, there are many things to consider when buying Dogecoin. Although it may have started out as a joke between friends, it has started to gain traction and only continues to do so, which means now is the perfect time to get your hands on it.