Dogecoin has been around since 2013, but it gained popularity in 2021 as a meme coin. Ever since then, Dogecoin has become a topic of interest among Gen Z and millennial investors. In 2021, Dogecoin’s value increased by 5,400% and it will be worth over $3.60 by the year 2030. In simpler words, the value is meant to increase, and now is the right time to invest. For this purpose, there are proper guidelines that you can follow on how to buy Dogecoin in Canada.
1. Choosing the Exchange
Dogecoin is one of the most popular meme coins. This is why you will find Dogecoin listed on well-known cryptocurrency exchanges. So, you have to start by reviewing different cryptocurrency exchanges that allow Dogecoin trading. While reviewing, you need to check the fees that will be charged while withdrawing and depositing the funds.
In addition, you need to consider the charges associated with trades. Keep in mind that fees will vary with cryptocurrency exchanges, so you have to consider how much you are willing to pay.
2. Creating and Verifying the Account
Once you have selected the desired cryptocurrency exchange, you have to start by opening an account and verifying the identity. Identity verification is important for complying with regulations and security purposes. In the majority of cases, a cryptocurrency exchange will ask for your name, address, and date of birth.
However, some exchanges also require phone numbers, and the phone number is used for implementing two-factor authentication for security purposes. Lastly, there is a chance that a cryptocurrency exchange will ask for proof of identification, such as the picture of a national identity card or driving license.
3. Deciding the Investment
Dogecoin is an altcoin, which means it will be subjected to price volatility. For this reason, you need to consider your financial situation and only invest the money that you can afford to lose.
4. Funding the Account
To fund your cryptocurrency account, you can deposit CAD as it is fiat currency, and you can transfer it from the bank account. Depending on the cryptocurrency exchange, you might have the option to fund your account with PayPal, credit card, debit card, or Interac e-Transfer. However, it might take a few days to clear the funds.
Once the fiat currency is transferred to your crypto exchange account, you can use it to purchase Dogecoin. However, if you already have some cryptocurrency in your wallet, you can fund the account by transferring these coins.
5. Purchasing Dogecoin
Once the account is verified and funds are cleared, you will be able to purchase your own Dogecoin. Depending on the crypto exchange you are using, you will be able to set up the recurring order that helps purchase more coins regularly to gain the benefits of dollar-cost averaging.
Now that you know the right way of purchasing Dogecoin in Canada, there are different ways of paying for Dogecoin. Since you have to deposit CAD into the crypto account, cryptocurrency exchanges offer different payment methods, such as debit cards, credit cards, e-wallets, and wire transfers. However, credit cards or debit cards and PayPal are the two most commonly available payment methods.
To use PayPal for purchasing Dogecoin, you will need to set up a new account with your broker and make sure the PayPal account is funded. So, whenever a crypto exchange asks for payment options, you can select PayPal, and the funds will be deducted from the PayPal account.
If you want to use a debit card or credit card for purchasing Dogecoin, you can select this payment method during the deposit stage. However, you need to consider the deposit fees because credit cards have higher charges as compared to e-wallets and debit cards.
6. Storing the Dogecoin
Once you are clear on how to buy Dogecoin in Canada, you must consider the storage method. The users can keep the coins in the crypto exchange’s wallet or shift them to another third-party wallet. Using an offline cold wallet is a better option, but it can be challenging to use as compared to a hot wallet.
Hot wallets are connected to the internet, which means they are prone to data loss, hacks, and theft. However, hot wallets promise faster trading and are more convenient to use. In simpler words, you should use a third-party wallet for storing your Dogecoin rather than using the exchange’s built-in wallet.
The Bottom Line
Canada is known as the global crypto hotspot, and it’s actually the first country to approve ETFs. This is why the public’s interest in Dogecoin will only intensify with time. So, it’s time you select a suitable crypto exchange, follow the instructions mentioned above, and purchase Dogecoin while it’s still affordable to earn more profits in the future.