A few words on Dai
Dai is the token of MakerDAO platform: it stands out from the rest by tightly linking the rate to the value of fiat currency. 1 DAI equals $1 USD. It’s positioned as a cryptocurrency that solves the problem of the high volatility of electronic cash. The main advantage of this cryptocurrency is the process of emission: the user can at any time using a smart contract create a collateral position, provide ETN tokens as collateral and issue the required number of DAI tokens.
The process is the following:
- Through the MakerDao platform, a user turns his Ethereum coins into the so-called PETH (Pooled ETH) using a special smart contract.
- The allocated ETN tokens are blocked, in return the user receives the right to issue a certain number of DAI coins that can be used further to acquire another cryptocurrency. A small commission of the platform is charged, it is equal to 0.5% per annum of the volume of the issued crypto.
- Unused DAI tokens can be converted through the same smart contract to ETH. DAI coins burn out, and you get the corresponding amount of Ether.
Compared to Tether and other stablecoin platforms, MakerDao makes everything more transparent, honest and reliable. The possibility of uncontrolled emission of DAI tokens without providing them with another crypt is impossible.
Dai (DAI) Wallets
Before you buy Dai coin, you should find a safe and reliable wallet to store the cryptocurrency. Although there is no official MakerDao wallet, the list of recommended solutions can be found on the Maker website. There are web, desktop, and mobile wallets available:
- Coinomi, Ethereum Wallet, and Exodus are software wallets that you can download on your PC
- MyEtherWallet is a web-based wallet that would be suitable for active trading with small sums;
- MetaMask is a browser extension;
- You can also store DAI on hardware wallets (Trezor, KeepKey, and Ledger Nano S).
Besides, Dai tokens can be stored on a paper wallet (the complete guide to creating such wallet is present on Maker website).
Where to buy Dai (DAI) cryptocurrency?
Dai (DAI) is sold on a large number of cryptocurrency exchanges. You can buy it for BTC, ETH, and other altcoins. Buying or exchanging DAI for fiat is highly problematic: only a few less popular exchanges support it. For example, DAI/USD pair is supported by EXMO, Ethfinex, and Sistemkoin.
How to buy Dai with Credit Card
Using a banking card, you can buy DAI directly, or purchase Tether or Bitcoin and change it to DAI. Dai coin can be bought for USD on such exchanges like Ethfinex, YoBit, and EXMO. DAI/USDC pair is more popular – it’s traded on a wider range of exchanges.
Buy Dai (DAI) with USD on Changelly
You can buy Dai coin on Changelly in a couple of clicks using your credit card. Visit this page, specify the amount of DAI you need, and proceed with the payment process. Enter your DAI wallet address, specify details and personal information. Now you need to pay with your banking card – deal!
How to buy Dai with PayPal?
Currently, you cannot buy DAI using the PayPal method as most cryptocurrency exchanges do not accept PayPal payments. However, you can buy Bitcoin or Ethereum with PayPal on several exchanges (Local Bitcoins, Wirex, VirWOX, Paxful) and then exchange it to DAI cryptocurrency on any crypto exchange that supports BTC/DAI and ETH/DAI pairs. Those are Coinbase Pro, Bittrex, Upbit, HitBTC, and Ethfinex.
Dai mining is not possible, as the blockchain uses PoI (proof of intelligence). Dai is issued with collateral – it’s not mined.
Disclaimer: This article should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.