Domestication takes years through selective breeding throughout generations. It's not something that can be achieved with one individual. If raised from a pup by humans, it's possible to tame them down, but the tendency for wildness is still there. Wild animals are still wild, and instincts can and will surface at some point.
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Yes. A coyote is like a dog, some people have them as pets. As long as you don't release it once its been domesticated, it's fine. I don't think its a good idea to have a coyote as a pet though
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My father actually caught a baby coyote and tried to raise it. When it bit him later on, he had to get rid of it. I wouldn't try to raise one as a pet.
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They've already proven the puppies turn 'wild' once they reach maturity. Same as any wild animal that's a predator.