Cryptocurrency can be very volatile, and recently, DAI hit an all-time low, making it a great time to invest in the cryptocurrency to maximize your returns. Staying on top of cryptocurrency trends will help you analyze which coin is the best investment option.
Keep reading to learn more about why DAI is the latest trend (and how to invest)!
What Is DAI?
MakerDAO operates the first known stablecoin DAI. DAI is based on an algorithm and runs on a decentralized autonomous organization, meaning it is not owned or managed by a single entity.
DAI operates through a system of smart contracts, as do many other coins, meaning that actions and events on the database follow the agreed terms of the contract. A computer program automates this process.
MKR, also known as Maker, is a cryptocurrency that works directly with DAI. While other stablecoins are backed by fiat currency, DAI works with a smart contract-based token. Since its launch in 2017, DAI can be confirmed through the Ethereum blockchain, maintaining proximity to the U.S. dollar thanks to MKR. Altogether, MKR has helped regulate the volatility of the coin.
DAI is named after the Chinese letter, which can be translated as: “lend or provide capital for a loan.” DAI, similar to AAVE, requires collateral if someone wishes to obtain the asset.
When you purchase or exchange DAI coins, it’ll be over a seamless, permissionless, and transparent blockchain network.
Is It A Popular Coin?
DAI is a popular coin because it’s a stablecoin. If you don’t have a safe way to hold your U.S. deposits, you could use DAI to store that equivalent currency.
DAI is compatible with most digital wallets, so you can utilize secure cryptocurrency wallets. DAI is an excellent beginner coin for investors new to cryptocurrency investing. It’s available on numerous cryptocurrency exchanges and in many countries.You don’t need a minimum balance to purchase DAI, making it an attractive coin to the masses. You can buy this coin and start your investments with just a few dollars.
How To Buy DAI
If you’re interested in purchasing DAI, you’ll first have to decide where you want to buy it. You could buy it on a centralized exchange platform, or you could buy it from a decentralized cryptocurrency ATM.
If you use an ATM, ensure you have a digital wallet set up to purchase and store your DAI. Byte Federal offers DAI at their ATMs. All you have to do is have an active registration, and you’re daily limit will be $29,500. When you go to purchase, you’ll insert the amount of cash into the ATM that you wish to convert into DAI.
Discover More Cryptocurrency Trends
DAI is only one of the latest coins riding the cryptocurrency trends, but there will be many more. To determine which investment will be best for your portfolio, it is vital to keep an eye on crypto trends.
If you’re interested in reading more about cryptocurrency, check out our blog!