How to Buy Dogecoin In Canada: 4 Crypto Exchanges that Trade Dogecoin
Have you joined the rush to buy dogecoin in Canada? Perhaps you haven’t and are feeling left out. After all, cryptocurrencies dominate much of the conversation in the investment world these days, with the market price of many currencies having soared over the past several years.
Dogecoin is just one of the hundreds of cryptos that are actively traded, but it’s more notable than most, due to its interesting background. But what exactly is Dogecoin, and where can you buy it in Canada? Let’s take a closer look at the cryptocurrency that began as a joke between two strangers.
What Is Dogecoin?
Dogecoin is a cryptocurrency that dates back to 2013 when two software engineers, Billy Markus and Jackson Palmer, created it as a joke. Unlike Bitcoin, there is no limit to how much Dogecoin can be in circulation. Its unlimited supply is one factor that makes it difficult to assess Dogecoin’s value as a currency. On the other hand, it encourages liquidity and is cheaper to acquire. In fact, most of the price appreciation has been the result of social media hype, fueled by attention from celebrities like Elon Musk and Snoop Dogg.
How Does Dogecoin Work?
The creators of Dogecoin derived its code from a Litecoin fork, called Luckycoin. It uses a proof-of-work consensus similar to Bitcoin, though it requires less energy to mine. Anyone can participate in Dogecoin mining, which is integrated with Litecoin mining. In exchange for their efforts, they receive freshly minted Dogecoins.
Canadian Cryptocurrency Exchanges that Trade Dogecoin
There are tonnes of global crypto exchanges where you can buy and sell Dogecoin, but here at MapleMoney, we prefer Canadian-based exchanges for Canadian crypto investors. Often, foreign exchanges place limitations on traders who don’t live in the US, for example. Canadian cryptocurrency exchanges cater to Canadians, and that’s important. With that in mind, and in no particular order, here are XX Canadian-based crypto exchanges that let you trade Dogecoin.
With more than 100,000 users, Coinsquare is one of the most popular crypto exchanges in Canada. You can buy and sell 10 different crypto coins, including Dogecoin. Coinsquare fees are competitive, but commissions can be as high as .40% when trading Dogecoin. Trades involving Bitcoin are cheaper to execute. Unlike some crypto exchanges, you can deposit fiat currency free of charge via e-Transfer or wire transfer, a welcome feature.
- Coins offered: BTC, BAB, BSV, ETH, ETC, LTC, DOGE, DASH, XRP, XLM
- Free deposits via Interac e-Transfer or wire transfer
- Registered with FINTRAC
- Fees (QuickTrade) .20% to .40%
- Trade on the mobile app (iOS or Android)
- Questionable customer support
Newton has only been around since 2018, but it’s quickly become known as an up-and-coming Canadian crypto exchange. Members love having the ability to trade more than 25 crypto coins, including Dogecoin. Newton doesn’t charge for account deposits and withdrawals, nor do they charge a commission fee for crypto trades. But that doesn’t make Newton free to use.
Instead of a trading fee, they make money on the spread between the buy and sell price. It can be challenging to know exactly how much it costs to trade with Newton, but estimates would place trades in the .50% to .70% range.
- Popular exchange with over 200,000 users
- More than 25 coins are available
- No charge for account deposits and withdrawals
- No trading fees, but traders pay between .50% and .70% on the spread (estimate)
- Assets kept in 95% cold storage
NDAX is a Calgary-based crypto exchange that was founded in 2018. It offers a competitive package for crypto traders, with more than 14 available coins, low trading fees, and free fiat deposits. On the downside, a flat withdrawal fee of $25 is a bit on the steep side, especially for the average investor placing small trades. The NDAX mobile app is iOS only at this writing, and something Android users should be aware of.
- Calgary-based crypto trading platform
- Trade up to 14 cryptocurrencies, including Dogecoin
- Trading fee .20% buy/sell
- Free fiat deposits
- All account withdrawals $25
- The mobile app is iOS only
Wealthsimple might just be the most recognizable name on our list. But did you know that Canada’s robo-advisor giant has joined the cryptocurrency fray? Wealthsimple Crypto started with only two coins ( Bitcoin and Ethereum) but has since expanded its offering to more than 20, a list that includes Dogecoin.
With Wealthsimple Crypto, there is no minimum deposit amount, so you can get started trading with as little as $1. One drawback is the inability to move coins in and out of Wealthsimple Crypto; transfers can only be made using Canadian dollars, a potential turn-off for more experienced traders.
- Supported by Canada’s largest robo-advisor
- Trade more than 20 coins, including Dogecoin
- Free fiat deposits and withdrawals
- CAD only
- Available mobile app
- The trading fee is .20%
Should I Invest In Cryptocurrency?
You may be wondering if you should invest at all in cryptocurrency, let alone buy Dogecoin. Most investors should avoid trading crypto outright due to the extreme volatility and the toll that can take on investor emotions. If you can handle the large fluctuations in market price, you might want to consider holding no more than 5% of your overall portfolio in crypto. Crypto should never be considered a replacement for legitimate securities, such as stocks, bonds, or ETFs.
Final Thoughts on How to Buy Dogecoin In Canada
Thanks to the four Canadian cryptocurrency exchanges I’ve featured above, it’s never been easier for Canadians to buy Dogecoin. Before you buy, however, there are a few things you should keep in mind. Cryptocurrency “investing” is highly speculative.
It’s tough, maybe even impossible, to assign a value to Dogecoin, which has seen so much of its rise come from the publicity generated through social media. You should never consider cryptocurrency to be a core holding in a well-diversified investment portfolio.
Also, only trade with money that you can afford to lose if things go wrong. Also, consider the fees you’re paying when you invest. A fraction of a percentage point here or there may not seem like much, but if you actively trade, the transaction fees will end up taking a bite out of your overall returns.