How to Buy Dai (DAI) in 2022: A Simple Guide

Dai (DAI)In this guide you’ll get information about where to buy Dai, if you are planning to buy DAI token – You’re in the right place!

The Maker Foundation, founded in 2014 by Rune Christensen, developed the Maker Protocol, an open-source initiative whose purpose was to run a credit model that enables users to take out loans collateralized by cryptos. DAI first appeared on the Maker Protocol in 2017 as a non-volatile lending asset for companies and people. MakerDAO, a decentralized autonomous entity that presently oversees the Protocol, finally took over management of the software from the Maker Foundation.

This implies that, unlike other asset-backed cryptocurrencies, DAI is the result of open-source software named the Maker Protocol, a decentralized program operating on top of the Ethereum blockchain. As a result, rather than being backed by US dollars held by a firm, DAI maintains its value through collateralized debt priced in ether (ETH), Ethereum’s cryptocurrency. Currently, DAI has been incorporated into over 400 apps and services, including wallets, DeFi platforms, gaming, and more.

Dai (DAI) Features

  • Reduced Risk. Stablecoins, such as DAI, can provide traders with a significant tool for mitigating the often excessive volatility of various cryptocurrencies whose values are set by the open market. A trader, for example, may decrease their exposure to a rapid decline in the price of Bitcoin or Litecoin by shifting assets to DAI. However, this may result in losing exposure to a rapid surge in value.
  • Collateralized Debt positions. The Maker Protocol’s Collateralized Debt Positions (CDPs) are smart contracts that users may utilize to lock their collateral assets (such as ETH or BAT) and create DAI. CDPs might be viewed as safe havens for the aforementioned collateral. DAI is frequently over-collateralized to accommodate for the volatility of the crypto collateral, which means that the deposit amount required is generally greater than the value of DAI.
  • Global Settlement. Global settlement is a mechanism that, as a last resort, may be utilized to cryptographically guarantee the Target Price to DAI holders.
  • Zero Transaction Costs. Another advantage of DAI is that it may eliminate transaction fees and delays that impede trade execution inside the crypto market when traditional government currencies are used, which may need to transit between banks, delaying ideal execution.

Where to Buy, Sell and Trade Dai aka DAI

You can basically use debit card, credit card, or even PayPal to buy the Dai (or any other cryptocurrencies). However, the transaction won’t be direct. It’s not like you pay with cash and you get the Dai as the exchange.

With cryptocurrency, things are different. You need to use debit card or credit card to buy  Tether first. After you get the ETH or BTC or USDT, you can convert it to Dai. It takes several stages and processes. You need to gain access to the reputable cryptocurrency exchange first to make sure that everything is safe and sound.

In general, the process would be:

  1. You go to the online exchange and buy the Ethereum (ETH), Bitcoin (BTC), or Tether (USDT)
  2. Find a crypto exchange that supports Dai currency and exchange your Ethereum / Bitcoin / Tether with the Dai
  3. Store your Dai to a secured wallet

Step 1: Buy Bitcoin (BTC) or Ethereum (ETH) or Tether (USDT)

There is no better way to get started with cryptocurrencies than aiming high for the big boys. You have to buy your first shares of Bitcoin or Ethereum by creating an account at COINBASE. The best to do so is by creating a confirmed account in the platform and explore your options.

The site will ask for some basic information about yourself, make sure to tell the truth. Otherwise, you could face withholding of your investment. Make sure to type your name, your e-mail, and your password correctly. The stronger your password is, the safest your money will be. You will be asked to check your status as a living being using a re-captcha box and to agree to the terms of use of the platform.

Get $10 Bonus when you sign up for Coinbase!

coinbaseClick here to register (opens in new tab)

  • You will be asked to through the process of confirming your e-mail address as well as verifying your identity. It would be best if you went through that procedure at once to avoid any issues before putting money on the platform. Coinbase will ask for personal information such as your home phone number, your address, and proof of your identity using an official document such as a passport or a driver’s license.
  • Keep in mind that Coinbase takes some time to verify your ID, but once your account is verified, things can move forward on your end. By confirming your identity, you will have better security on your account, and the people working at Coinbase will be able to help you with easy on any issue you face. You will also be able to trade larger numbers of money on your transactions as well as other perks related to the trading information the goes inside the platform.
  • You can also manage your payment options. As we mentioned previously, the sites make it very easy to handle FIAT money to pay for the altcoins you want to have in your portfolio. You can check in your bank account to make direct deposits or withdrawals. While this method is excellent, it takes at least two days to verify it on Coinbase’s end. You can also register your credit cards, debit cards, and even your PayPal account in the buy/sell link located on the top menu.

That’s the first step in buying Dai, once you get your Bitcoin or Ethereum or Tether, you can continue to the next step.

Step 2: Choosing the Best Cryptocurrency Exchange for Your Investments

After you have your Coinbase account, you need to choose a cryptocurrency exchange to make your deals, then you need to transfer your newly purchased BTC or ETH or USDT from your Coinbase wallet.

With so many options out there and so many unbalanced reviews across the internet, it can be quite challenging to choose the right exchange service. Since we are looking out for you and we are interested in making you win money as well, we have taken the liberty of picking ten of the best ranking exchanges you can contact on the internet. For the sake of transparency, we can tell you that our operations keep running each time you click on these recommendations.

These are the best exchanges we can recommend for you to exchange BTC or ETH or USDT with Dai:

GATE.io
gate.ioGate.io is a crypto exchange service that is part of Gate Technology Inc. Gate.io is registered in Virginia, United States, and founded in 2017. They only handle transactions using cryptocurrencies, so you won’t find Fiat options with them. Since they work with the best ranked digital assets in the industry, they can average up to $48million in transactions.

  • Deposit Methods: Cryptocurrency Only
  • Fiat Currencies: N/A
  • Supported Cryptocurrencies: BCH, EOS, TRX, ONT, ETH, BTC, BTM, AE, OCN, ADA, IHT, XRP, ETC, NAS, LTC, & over 1040+ more
  • Trading Pairs: 1801+
KUCOIN
kucoinKucoin is one of the most solid exchanges in the market right now. They started to operate back in 2017. They take regular payment methods such as wire and bank transfers as well as other cryptocurrencies. They have a presence both in the Google Play Store and the iOSAppStore. Kucoin also offers discount trading fees, as well as significant dividends on half the transactions they do. They have a presence both in the Google Play Store and the iOSAppStore.

  • Deposit Methods: Cryptocurrency, Express Polish Post Office 24/7, Wire transfer, GBP bank transfers
  • Fiat Currencies: USD, EUR, PLN, GBP and 47+ More
  • Supported Cryptocurrencies: BTC, ETH, XRP, BCH, TRX, LTC, DASH, XMR, XLM, OMG & 512+ more
  • Trading Pairs: 1044+

IMPORTANT! Once you are registered to the crypto exchange above, Go back to COINBASE and send your Bitcoin/Ethereum/Tether to your new exchange. Find the DAI/BTC or DAI/ETH or DAI/USDT trading pair and then place the order to buy those pairing cryptocurrencies.

Most likely you’ll find this pair available to you DAI/USDTso you need to convert your BTC or ETH to USDT first in order to buy Dai (DAI)

Step 3: Managing Your Crypto Assets in a Secure Wallet

As your portfolio of crypto assets expand, you will need to have a crypto wallet to keep your goods safe. There are thousands of service providers on that end, and choosing the right one would take an entirely new guide to share some knowledge about this topic.

You can install one of these wallets in your hardware. That way, you can keep your currencies in your devices, such as your desktop or laptop. If you prefer, you can also use an online wallet to keep your holdings safe on the internet.

There are also options to have mobile wallets installed on your smart device, but most of them are lacking in the space department. The final option would be a paper wallet, which is nothing more than a euphemism to get an official legal document that states the content of your wallet and the keys to gain access to them.

For Securing your Dai (DAI) We recommend you to use hardware wallet which support many cryptocurrencies – Choose between these two: Ledger or Trezor

ledger nano x

LEDGER NANO-X: Securely trade on-the-go and manage a large number of assets at the same time, with only one device.

  • Secure
  • Mobile Friendly
  • Easy to Manage
  • Supported Coins: 1200+

trezor model t

TREZOR MODEL-T: The next-generation cryptocurrency hardware wallet, designed to be your universal vault for all of your digital assets. Store and encrypt your coins, passwords and other digital keys with confidence.

  • Invented for your digital independence
  • keeps your keys safe
  • Easily back up your entire wallet
  • Supported Coins: 1093+

Frequently Asked Questions (Faqs)

Can I Buy Dai (DAI) with PayPal?

You won’t be able to buy this directly with PayPal. If you are going to use PayPal, you need to buy Bitcoin or Ethereum first and then exchange it with the Dai. You can use LocalBitcoins to find BTC or ETH seller who accept paypal as payment.

Can I Buy Dai (DAI) with Cash?

You can’t buy it directly, you need to get bitcoin/ethereum first. buying BTC or ETH with cash you can do the following:

  • Make sure you have a BTC / ETH wallet before you buy from seller
  • Go to LocalBitcoins and find person in your area who sells bitcoin/ethereum and accept cash.

Can I Buy Dai (DAI) with Skrill?

You can’t buy DAI directly with skrill but you can buy Bitcoin/Ethereum first using Skrill and exchange it later to Dai. You can buy BTC/ETH with skrill by using these exchanges::

  • LocalBitcoins
  • Paxful
  • Virwox
  • SpectroCoin
  • Lykke
  • Exmo
  • Coingate

Can I Buy Dai (DAI) with Bitcoin?

Yes, you are basically exchanging your Bitcoin with this. Just head to any exchanges listed above, find trading pair DAI/BTC and begin the transactions.

Can I Buy Dai (DAI) with Ethereum?

Yes, the process is similar to using Bitcoin: Find a criptocurrency exchange which support DAI/ETH trading pair.

What Is the Best Payment Method to Buy Dai (DAI)?

The cheapest way is to use bank account to buy Bitcoin or Ethereum or Tether first or to buy the Dai right away. The fastest way is to use a credit card but you will then be charged higher fees.

How to Protect Dai (DAI)?

Once you have purchased the Dai, transfer it to your wallet. We recommend using hardware wallet, here are some recommendations:

Ledger Wallet

Trezor Wallet

 

 

 

 

 

 

How to Sell Dai (DAI)?

Find a crypto exchange which allow pairing DAI with BTC or ETH or USDT – convert it back to Bitcoin or Ethereum, then sell your BTC or ETH for a fiat currency.

Can I Mine Dai (DAI) and Not Buying It?

You can’t mine this actually. It has a completely different network and structure than the regular Bitcoin. The only way to own a Dai is to buy it from a reliable exchange.

Conclusion

Users may be interested in purchasing DAI since it combines the transparency and efficiency benefits of cryptocurrency with price volatility protection. DAI, like many other cryptocurrencies, is borderless, programmable, and simple to transfer, with the extra benefit of maintaining a consistent price. DAI also allows consumers to acquire loans in a way that may provide advantages over existing solutions. Rather of having their credit reviewed by a bank or financial institution, DAI users may just deposit ether and get DAI.

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