Also known as a stablecoin, the DAI coin is attractive to crypto traders. As the name suggests, these coins experience less volatility and more stability than other types of cryptocurrencies. This article will cover the three main benefits of buying DAI coins, why experienced traders are choosing to buy DAI, and how to get started in purchasing and trading this popular crypto coin.
The 3 main benefits of DAI coin include:
1. It is decentralized: DAI is a decentralized stablecoin, meaning it’s not subject to the volatility of the crypto markets.
2. It is flexible: DAI can be used in a number of different ways, including as collateral for a loan, making purchases and sending large sums of money.
3. It is secure: DAI is built on the Ethereum blockchain, backed by other cryptocurrencies and pegged to the US dollar, making it one of the most secure stablecoins available.
What is DAI cryptocurrency?
The DAI is a type of cryptocurrency categorized as a decentralized stablecoin. It is soft-pegged to the US Dollar, meaning it attempts to maintain a 1:1 ratio with the US Dollar. Whether the value of the DAI fluctuates below or above a 1:1 ratio with the USD, traders are incentivized to bring it back to its $1 dollar value. DAI is one of two native cryptocurrencies of the Maker Protocol, an open-sourced software application maintained by the Maker DAO (Distributed Autonomous Organization). It runs on the Ethereum blockchain and is backed by collateralized debt positions (CDPs) in Maker.
As stated above, DAI is a cryptocurrency that is pegged to the US dollar, meaning that its value is always equal to $1. However, as it is still a cryptocurrency, the DAI is by definition a decentralized currency that is not subject to the whims of central banks or governments. The DAI is built on the Etherium blockchain, initially released in 2015, the Ethereum is an open-source, blockchain-based, decentralized platform. Additionally, trading DAI reduces the associated fees with traditional fiat currencies, as well as the time spent dealing with banks or other financial institutions that operate them.
As a ECR20 token, DAI is transparent and can easily be traded within the Ethereum network. The Ethereum network allows users to not only carry out digital cryptocurrency transactions, but also allows creating smart contracts and decentralized applications (DApps).
As such, and thanks to the use of smart contracts, DAI streamlines the loan process for borrowers. Other benefits are that DAI coins can be used to purchase goods and services online, and DAI can also be used to send large sums of money to friends and family members quickly and easily.
Last but definitely not the least, as stated in the introduction, perhaps the main benefit in buying DAI is the security that this type of cryptocurrency offers traders. DAI maintains a stable value in an interesting way: it shifts following market changes and keeps a steady price versus other cryptocurrencies. DAI depends on traditional banking infrastructure but is decentralized, transparent, and backed by other cryptocurrencies. Using this categorization, the DAI is thus a crypto-collateralized stablecoin.
Moreover, DAI coins are always over collateralized, meaning that they are backed by other cryptocurrencies always higher than a simple 1:1 ratio. Finally, the supply of DAI is dynamic and there is no upper limit to the total amount supplied. There are currently 940 million DAI coins in circulation.
So, where can you buy DAI
There are a few different ways to buy the DAI cryptocurrency. One way is to buy it directly from a reputable exchange platform, such as Bybit. Once you have set up an account, you can securely make a wire transfer from your bank. Check to see if your chosen exchange platform has a mobile app or desktop app available for easy download.
Once set up and with a deposited amount, you can start trading DAI with a few clicks on your phone or laptop. Reputable exchange platforms will also offer real time market data to monitor the liquidity easily and conveniently. Additionally, look for exchange platforms that offer 24/7 multilingual support.
There are other purchasing methods as with other cryptocurrencies, which include peer-to-peer marketplace (P2P). You can also buy DAI from a cryptocurrency ATM.
DAI is a great cryptocurrency to invest in because it is stable, decentralized, flexible and transparent. As a popular cryptocoin within the stablecoin group, and just as its name suggests the DAI coin may just offer the best of both worlds: the stability of fiat currencies in a decentralized trading environment and the elimination of middlemen and banking fees that simply will always add up.
There are currently several convenient ways to buy DAI online, such as an exchange platform that allows you to deposit funds in a secure manner directly from your bank, track progress of your investment in real time and offer multilingual, 24/7 customer support.
Follow and Subscribe Nyasa TV :