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- Dai (DAI) is an algorithmic stablecoin ‘soft-pegged’ to the US Dollar.
- To demonstrate the purchase process, we have selected Kraken as an example.
- Depending on the exchange you choose, there may be different ways to fund your account.
- Decentralized exchanges generally require a bit more technical know-how, so they’re better suited for a more experienced cryptocurrency investor.
- Finder.com compares a wide range of products, providers and services but we don’t provide information on all available products, providers or services.
You could also invest in DAI token if looking for a low-risk way to make money off cryptocurrencies. HODLing DAI and lending liquidity is a great way to generate passive income and grow your crypto holdings more safely, offering lower exposure than trading the market. The DAI price rarely fluctuates from its peg to the USD, thanks to its solid reserves of collateral handled by the decentralized autonomous organization, MakerDAO.
Decide how to pay for Dai
Before you can buy and sell DAI, you need to fund your exchange account with a cryptocurrency or fiat currency. Most exchanges offer multiple funding options, including bank transfers, profit first credit/debit cards, and other cryptocurrencies. Choose the method that suits you best and follow the instructions provided by the exchange to deposit funds into your account.
- DAI is an ERC-20 token and can be stored in Ethereum software wallets like MetaMask or TrustWallet.
- However, this means that you’re not entirely in control of your assets.
- We may receive compensation from our partners for placement of their products or services.
- Never disclose your account credentials to anyone and if you do not know how to use our platform, ask our Customer Support and DO NOT install any remote access to your computer.
- This means that a DAI transaction goes through the following stages when it is sent from one person to another.
DAI tokens are issued by MakerDAO, a decentralized autonomous organization founded by Rune Christensen, a Danish entrepreneur. Any holder of Maker Tokens (MKR) has a right to participate in the decisions made by the MakerDAO and can propose changes on how the DAI stablecoin should work. Dai (DAI) is an Ethereum based stablecoin soft-pegged to the US dollar.
Custodial wallets are convenient for beginners because users don’t bear the responsibility of storing their private keys. However, this means that you’re not entirely in control of your assets. Like most cryptocurrencies, you can buy DAI on traditional cryptocurrency exchanges. The most well-known exchanges listing DAI are Kraken, Coinbase) and Bitfinex. Like with any other cryptocurrency you’ll first have to deposit fiat money in your exchange account to buy DAI.
It is overcollateralized at a ratio of 141%, according to data from Daistats.com. While this makes them easier to access, they are less secure and prone to hacks. DAI aims to reduce the volatility of trading on the blockchain by keeping the value of $1 since it’s soft-pegged to the dollar. Collateralized loans allow a lender to secure a loan by locking away the assets they own. Users borrow and pay back DAI, which functions simply as a stable Ethereum token used to pay for things. Please remember that most exchanges will also need you to pass a KYC (Know Your Customer) verification.
The exchange has more than 98 million verified users in over 100 countries and maintains approximately $256 billion in assets. Simply enter your credit card information as a payment option within the app and proceed with the transaction. Dai (DAI) is one of your options if you’re looking for a stablecoin that follows the U.S. dollar. It’s also a rarity in that it doesn’t have a central organization managing it.
What Is DAI?
This exchange has been operating since 2014 and has assisted numerous traders in beginning their crypto trading journey, offering the convenience of purchasing with just a credit or debit card. Unlike other exchanges where you buy tokens from other users, with Paybis you purchase directly from the exchange, making the process much simpler and smoother. Many trading platforms allow you to buy cryptocurrencies by a card for fiat money (dollars, euros, etc.). In addition, you can use the p2p-platform of the exchange, which hosts offers for the sale of coins with a large selection of payment methods. Investing in a hardware wallet can sometimes mean spending hundreds of dollars on a physical device.
MoonPay offers a fast and easy way to buy Dai (DAI) with credit card. Dai is the first decentralized, collateral-backed stable cryptocurrency. First, you need to sign up on the exchange by entering a valid email address and a username. So read on to learn everything you need to know about the DAI cryptocurrency and find out how you can buy DAI in a few simple steps. DAI is a fully collateralized stablecoin created and regulated by Maker DAO (Decentralised Autonomous Organisation), founded by Rune Christensen, the current CEO. DAI seeks to solve the volatility of cryptocurrencies by keeping its value soft-pegged to one U.S. dollar.
How do I find the best places to buy Dai?
The minimum collateralization ratio for ETH is currently set at 150% which means that depositing $150 worth of ETH allows the sender to borrow up to 100 DAI. A crypto wallet can protect your Dai tokens against potential exchange hacks or insolvency, but they also require some more responsibility from the user. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.