Guide to Purchasing Dogecoin in Canada in 2022 with Step-by-Step Process

It's quite amusing, isn't it? Dogecoin, a cryptocurrency that bears the likeness of an adorable, chubby Shiba Inu known for its endearing grammatical inaccuracies. If you were to ask the market, at one point in May 2021, traders believed it was worth a staggering billion. This relatively obscure internet joke quickly transformed into a global sensation, riding the coattails of Bitcoin's rising price. And it truly entered the mainstream when influential figures such as Elon Musk, Gene Simmons, and Snoop Dogg professed their support for this peculiar coin.

The origins of Dogecoin can be traced back several years when it was created to mock the various spinoffs of Bitcoin. Surprisingly, this coin managed to rise above the noise of the market and became one of the largest cryptocurrencies in terms of market capitalization. A devoted army of supporters firmly believes that each Dogecoin will eventually be valued at $1 or even more. But how did we reach this point?

If you're interested in buying and selling Bitcoin, Ethereum, or any of the other numerous cryptocurrencies, I recommend checking out Wealthsimple. They offer a wide range of options. Take a look and start trading by following this link.

Let's delve into the intriguing history of Dogecoin. Back in 2013, two software developers named Jackson Palmer and Billy Markus were the masterminds behind its creation. They wanted to bring a lighthearted and humorous touch to the cryptocurrency industry. However, Palmer decided to depart from the project in 2015, selling off all his Dogecoin, primarily due to what he perceived as a toxic community within the cryptocurrency world.

The name "Dogecoin" originates from an internet meme featuring a Shiba Inu dog combined with text in comic sans font. The initial picture of this dog, known as Kabosu, was uploaded in 2010 by Atsuko Sato, a Japanese kindergarten teacher. Interestingly, the popularization of the term "doge" came separately from a Tumblr post in 2012, which did not mention Kabosu's original picture.

Following the Tumblr post, the internet began generating several doge-related memes, although these memes didn't feature the picture of Kabosu. On 4chan, doge threads emerged, where users shared images of dogs in costumes, and on Tumblr, blogs dedicated to "doges" were created. Simultaneously, a blog named Shiba Confessions gained popularity by posting different memes featuring Shiba Inus.

In early 2013, the two threads of the meme, involving Shiba Inus and the misspelling of "dog" as "doge," converged. This led to the creation of a subreddit exclusively dedicated to doge memes, all featuring images of Shiba Inus, which ultimately propelled the meme's popularity. Kabosu's picture remained the most widely used image for these memes, and her likeness was adopted for the creation of Dogecoin itself.

As time went on, these memes adopted increasingly surreal and bizarre qualities. Remarkably, despite the fact that most memes peter out within a matter of months or even weeks, this particular meme has managed to maintain a certain level of relevance for a staggering eight years.

In 2013, the two software developers officially introduced Dogecoin. Initially, Palmer had tweeted about it as a joke, mocking the overwhelming number of alternative coins flooding the market at the time. However, the tweet garnered enough interest to motivate him to turn the idea into an actual coin.

In terms of its technical nature, Dogecoin can be classified as a derivative of Bitcoin and belongs to a lineage of Bitcoin spinoffs. Specifically, it is a fork of Luckycoin, which, in turn, is a fork of Junkcoin, a coin derived from Litecoin. Litecoin itself stems from Bitcoin, originally designed to facilitate payments. From these roots, Dogecoin has evolved into something much larger than Palmer initially envisioned.

Let's not forget the lighter side of Dogecoin's history. In 2014, the Dogecoin community raised funds to sponsor NASCAR driver Josh Wise. The collaboration between the NASCAR subreddit and the Dogecoin subreddit yielded an impressive $55,000 in sponsorship. At the time, this amount was equivalent to 67 million Dogecoins (which would be worth over $25 million today).

Although having received payment in Dogecoin would have made Wise incredibly wealthy in the long run, the Reddit community chose to convert the Dogecoin to US dollars. Subsequently, Wise secured his second-best finish of the season, and out of goodwill toward the community, he participated in a few more races driving the Dogecar. The Dogecar made its final appearance in 2015 but made a comeback in 2021 to sponsor Stefan Parsons.

Another notable event took place in 2014 when the Dogecoin community sponsored the Jamaican bobsleigh team. The team had qualified for the Sochi Winter Olympics but lacked the necessary funds to attend the event. In a display of genuine camaraderie, the Dogecoin community managed to raise $30,000, which caused the price of Dogecoin to surge by 50% relative to Bitcoin. Unfortunately, the bobsleigh team finished in 29th position, not achieving the outcome they had hoped for.

And that brings us to the intriguing journey of Dogecoin, from its humble beginnings as an internet meme to becoming a global sensation and a force to be reckoned with in the cryptocurrency world.

As a segment of another undertaking, Doge4Water, the community also managed to accumulate $32,000 in order to construct a well in Kenya. The initiative was spearheaded by Eric Nakagawa, the originator of the renowned meme website I Can Haz Cheezburger.

2021: The Revitalization of Dogecoin

Despite the community's elation, Dogecoin never truly took flight. In 2017, Dogecoin experienced its primary surge, coinciding with Bitcoin's initial major bull run. The value of Dogecoin soared from $0.001 in October 2017 to its peak at $0.016 in January 2018. However, in sync with Bitcoin's downturn, Dogecoin also experienced a decline, plummeting to lows of $0.00279 by April. It made minimal progress until the year 2020.

The rising trend began in October 2020 when Bitcoin's value began to rise. Multiple factors contributed to this phenomenon. Firstly, the pandemic caused interest rates to hit rock bottom, encouraging the flow of funds into speculative investments. Additionally, investors found themselves confined to their homes and seeking stimulation, with cryptocurrencies proving to be more captivating than Netflix. Furthermore, during the summer, the Ethereum network experienced its own miniature boom with decentralized finance and non-custodial financial protocols taking center stage. NFTs followed suit, capturing the public's attention and directing it towards the world of crypto.

This convergence of events propelled Bitcoin's value to unprecedented heights. By spring, Bitcoin had skyrocketed to ,000. This colossal surge influenced the entire market, sparking a bull market for almost every cryptocurrency. Dogecoin rode this wave of success. By January 21, it had reached $0.0085, which then rose to $0.07 on February 11. The true surge began in April, with prices surging from $0.06 on April 6 to $0.29 by April 22. It then doubled to $0.59 the following month. In May, at its pinnacle, Dogecoin's market cap reached billion, according to CoinMarketCap data.

What propelled Dogecoin to capture the public's attention? One possible explanation is the endorsement of several incredibly famous individuals who began tweeting about the coin. One of Dogecoin's most prominent supporters is Elon Musk, the CEO of Tesla and SpaceX.

Musk had been tweeting about the coin for months, and with each tweet, the price experienced a significant rise. Musk instilled hope in the crypto market when he announced that his company had invested billions of dollars in Bitcoin. He further heightened anticipation by revealing that he would mention Dogecoin on Saturday Night Live, a popular comedy show on NBC. Investors seized this news, anticipating that Musk's endorsement would bring in millions of new Dogecoin enthusiasts and drive up demand for the coin.

However, Musk would soon disappoint his fans all at once. On Saturday Night Live, he referred to Dogecoin as a "hustle." This caused the coin's price to plummet, erasing $20 billion from its market cap. Musk further impacted the coin negatively when he tweeted his disapproval of Bitcoin's environmentally damaging mining process, subsequently wiping an additional $10 billion from the market. (Dogecoin utilizes the same mining process, as do most major cryptocurrencies).

How Does Dogecoin Operate?

Dogecoin operates in a similar manner to Bitcoin as a decentralized cryptocurrency payment network that facilitates peer-to-peer transactions. Like Bitcoin, Dogecoin employs a proof-of-work consensus mechanism to mint new Dogecoin and validate transactions.

To process transactions, the Dogecoin network divides them into batches called blocks. Each block records the details of all transactions between different accounts on the Dogecoin network within a specific timeframe—typically one minute for Dogecoin. These blocks are interconnected to form a ledger that serves as a record of individual users' balances.

Proof-of-work serves the purpose of validating the individual blocks on the blockchain. Computers dedicate substantial computational power and electricity in solving intricate mathematical puzzles. The puzzles are designed to find a number that, when added to the end of a block, verifies the block's authenticity. Miners are rewarded with newly minted Dogecoin for their efforts.

How Does Dogecoin Differ from Bitcoin?

Though Dogecoin shares many similarities with Bitcoin, there are several distinctions.

One significant divergence lies in the supply cap. Bitcoin's supply is capped at approximately 21 million coins. Once all of these Bitcoins are mined, estimated to occur in about 120 years, there will be no possibility of creating additional Bitcoin. In contrast, Dogecoin has no limit on the number of coins that can be mined. Initially, the total supply of Dogecoin was capped at 100 billion, but this limitation has since been lifted.

Purchasing Dogecoin: A Step-by-Step Guide

To acquire Dogecoin, there are a series of necessary actions to undertake. Firstly, it is imperative to note the contrasting dissimilarity between Bitcoin and Dogecoin. While Bitcoin serves as a reputable and substantial venture developed by highly intelligent individuals who prioritize principles such as decentralization, censorship-resistance, and libertarianism; Dogecoin, on the other hand, should be regarded as a mere jest, its creators never meant for it to be taken earnestly.

To embark on purchasing Dogecoin, a cryptocurrency exchange provides the means to do so. However, before engaging in any trading activities, the user must create an account on one of these platforms. It is important to be aware that certain exchanges may demand proof of identification, for instance, a driving license, as part of their verification process.

In most cases, acquiring Dogecoin will entail obtaining a different cryptocurrency first, through which the purchase can be facilitated. Among the most widely favored options is the stablecoin known as Tether, which is pegged to the value of the US dollar. On various exchanges, utilizing Tether grants the opportunity to obtain Dogecoin.

It is crucial to consider that multiple fees might be incurred during this whole process. The chosen exchange may require fees for depositing funds, then additional charges for acquiring Tether, and yet again more fees for buying Dogecoin. Furthermore, when converting your Dogecoin to another cryptocurrency or reverting it back to fiat currencies, additional fees will be applicable.

Please bear in mind that the information provided was last updated on March 3, 2022.