How to Buy MakerDAO (DAI)

Are you considering investing in MakerDAO’s DAI tokens? Keep reading for a quick rundown of what all MakerDAO is so that I can help you see if this investment is the right fit.

How to Buy DAI

1. Create a Coinbase account - We recommend using Coinbase as it offers $5 in free Bitcoin when you sign-up.
2. Add a payment method - Add your payment method and fund your account.
3. Research the coin - Search for the coin by name or ticker symbol - DAI.
4. Decide the amount of coins - Now it is time to decide how many coins you want to buy of MakerDAO.
5. Purchase coins of DAI - Buy the amount of coins you want with at the current price on Coinbase.

You’re clearly curious about investing in MakerDAO. Perhaps it's DAI’s promise of price stability, or maybe you like the looks of the Awesome-MakerDAO (AMD) community.

That’s all well and good, but cryptocurrency is a tricky business.  Should you buy DAI? That depends.  If you want to invest in crypto, but don’t want to deal with as much of the high-risk and ever-changing nature of crypto investments, choosing a stablecoin, especially MakerDAO, would be a fantastic way to get involved. 

What is MakerDAO (DAI)?

MakerDAO is the organization that controls DAI tokens. “DAO” stands for ''Decentralized Autonomous Organization.'' This means the MakerDAO community manages the Maker Protocol and DAI via an embedded governance mechanism.

MakerDAO and DAI are widely considered to be the first commonly adopted Decentralized finance (DeFi) platform and exists on the Ethereum blockchain. 

DAI (previously SAI) is one of the first stablecoins ever created. A stablecoin is a type of cryptocurrency that is designed to have a fixed exchange rate.

This means that the currency’s value fluctuates minimally or not at all.  DAI’s value is fixed (“pegged”) to the United States Dollar. This means that it is intended to be fixed as close to the United States Dollar as possible.

MakerDAO maintains this peg by using a Target Rate Feedback Mechanism (TRFM), as well as a mechanism of the underlying collateral (ETH) and price feeds.

DAI is a stable, low-risk, and borderless cryptocurrency. This means you can use it in several ways, like hedging, speculation, prediction markets, and commerce.

DAI can also be used on different platforms, including crowdfunding platforms like Gitcoin, bounty hunting platforms like Bounty0x, and other crypto apps, integrations, and tools.

Who Are The Founders of MakerDAO?

MakerDAO was founded by entrepreneur Rune Christensen in 2014. He’s currently the CEO and Co-founder of MakerDAO. Christensen previously held the position of co-founder at an international recruiting firm called Try China.

The MakerDAO community represents a dedication to financial stability and transparency in the international economy. No one person controls the MakerDAO community, hence its status as a decentralized autonomous organization.

MakerDAO (DAI) Price Today

How Many MakerDAO (DAI) Coins Are in Circulation?

There are roughly 940 million DAI Coins in circulation. They are automatically minted using smart contract technology and CDP loan agreements.

Theoretically, anyone can create a CDP and receive DAI.  MakerDAO maintains several smart contracts running on Ethereum. These smart contracts generate DAI loans for users in exchange for collateral, which is deposited into a Maker vault on the Ethereum blockchain. 

The loans generated by MakerDAO’s smart contracts are just that: loans. This means that their recipients must pay interest or stability fees to maintain them.

How is MakerDAO Secured?

The MakerDAO network is secured through something called the Oracle Security Module (OSM). Oracles are blockchains that give and take information from internal and external systems. 

The OSM or oracle system inserts a delayed price into the MCD system for a particular collateral type. I know the OSM isn’t quite divination, but its massive processing prowess definitely makes it feel that way.

The process of inserting delayed prices into the MCD system occurs once every hour. This ensures that each new price value propagated by the oracle system cannot be taken up until a requisite delay period has passed. 

MakerDAO also employs an Emergency Shutdown Module in the case of emergencies. In the event of long-term market irrationality, a hack, or a security breach, the Maker Protocol will shut down, protecting its users' assets.

What Makes MakerDAO Unique?

Like all stablecoins, DAI’s relative stability makes it an excellent choice for speculation and betting in long-term prediction markets. But what makes MakerDAO different from other stablecoins? 

Aside from being one of the first stablecoins to be put in circulation, DAI is also considered to be one of the very best. One of the reasons for this is that DAI offers a unique multi-collateral option that enhances its stability, and its market cap stands at well over $9 billion. 

The MakerDAO community is famous for its consistently high levels of engagement. MakerDAO holds regular community calls to encourage decentralized and democratic governance.

Most stable coins in circulation are centralized, which means they require their users to verify their personal information to access the financial tools they provide.

Decentralized cryptocurrencies are special because they do not involve third-party interference.  The Maker Protocol was also the first dapp to be formally verified.

A dapp is a decentralized application that is exactly like a regular app, with one exception: dapps are encrypted with blockchain technology to protect their users’ data.

This is a massive achievement. 

MakerDAO Alternatives

Should I Invest in MakerDAO?

Crypto is not for everyone, but if you are a fan of cryptocurrency and are interested in stablecoins, DAI tokens are the ideal starting point. DAI offers general stability and flexibility in use that a lot of other cryptocurrency does not offer. 

This can be a lot to wrap your head around at first, it sure took me a while, but it’s easy as breathing once you have the terminology down!

MakerDAO and DAI coins are ideal investments for crypto enthusiasts who gravitate toward safe bets. Being a stablecoin means DAI is shielded from market volatility.

It's value will always be equivalent to that of the United States Dollar.  Because of its success, MakerDAO also boasts a certain level of prestige in the crypto community at large.

Its community also offers permissionless access, which means virtually anyone can access it.  MakerDAO is secure. Multiple systems are in place to protect its community from market fluctuations and pernicious actors.

The MakerDAO community prizes stability and security very highly.  If you find these elements appealing, invest in MakerDAO and embark on your stablecoin adventure today!