What is DAI and How to Buy It

in #cryptocurrency6 years ago (edited)

DAI is “a collateral-backed cryptocurrency whose value is stable relative to the US Dollar”. Basically, 1DAI = $1 so it’s a great asset if you want to protect yourself from price fluctuations. If you are curious about how it works, have a look at this article. TL;DR there is a pretty solid idea of how to stabilize a cryptocurrency.

Since this currency is still gaining momentum, there are questions popping up about how to got. I will write a step-by-step guide on how I do it.

Step 1:

I personally usually start with Switchain so in this case I will be exchanging 0.5 ETH for DAI. Here's where it starts.

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Step 2:

Since the service compares a few exchanges, I click Exchange on the most favorable rate.

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Step 3:

You are then prompted to input a DAI wallet address and ETH wallet address (in case the transaction fails and ETH needs to be refunded). Personally, I use Coinfy, but you're welcome to use any other ERC20 wallet.

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Step 4:

After you send the correct amount of ETH (the one you defined in Step 1) to the displayed address (see image below for reference), your DAI will shortly be deposited to your wallet.

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That's it! After a few minutes you'll see the confirmation screen and your DAI will be in your wallet. It's pretty straight forward.

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Good luck trading and hopefully you'll explore these new tokens that help defy one of crypto's worst traits - volatility.