How To Buy Decred (DCR)?

A common question you often see on social media from crypto beginners is “Where can I buy Decred?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. 

Step 1: Create an account on an exchange that supports Decred (DCR)

First, you will need to open an account on a cryptocurrency exchange that supports Decred (DCR).
We recommend the following based on functionality, reputation, security, support and fees:

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase Decred (DCR) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy Decred (DCR)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Decred (DCR) or Decred (DCR) trading pairs. Look for the section that will allow you to buy Decred (DCR), and enter the amount of the cryptocurrency that you want to spend for Decred (DCR) or the amount of fiat currency that you want to spend towards buying Decred (DCR). The exchange will then calculate the equivalent amount of Decred (DCR) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Decred (DCR) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

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What Is Decred (DCR)?

As one of earliest cryptocurrencies, Decred copied Bitcoin’s code and modified it in an effort to empower and reward the token holders who contributed changes to its network.

In this way, Decred experimented with ways to encourage user participation in its governance process and offered a novel idea for doing so. With this in mind, the Decred team engineered Decred as a hybrid-consensus mechanism with components from both Proof-of-Work (PoW) and Proof-of-Stake (PoS), with the PoW miners verifying transactions and the PoS stakers proposing and voting on network upgrades.

Decred uses a proposal system called Politeia to tie this all together, where stakeholders vote on project funding, new initiatives, and various other changes to the protocol’s code.

How does Decred work?

Decred was created by copying Bitcoin’s code and thus the cryptocurrency offers similar features, with varying modifications. For example, Decred’s block time is 5 minutes long (compared to Bitcoin’s 10), its mining difficulty adjusts roughly every 12 hours (compared to Bitcoin’s two weeks), and its block reward is allocated to miners, stakers and a treasury (as opposed to 100 percent issued to Bitcoin miners).

Central to Decred is its hybrid Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanism that keeps the distributed network of computers running its blockchain in sync. Similar to other PoW cryptocurrencies, Decred miners expend energy to solve computational puzzles to validate transactions and add blocks to the blockchain.

Decred’s PoS then allows those who stake DCR to validate and confirm those transactions and also participate in the network’s governance process.

Stakers are given ‘tickets,’ a non-transferable asset specific to the Decred network, with 20 tickets being available each block. Five of those tickets are then randomly chosen, and their owners then validate the correctness of blocks proposed by miners. Once blocks are finally settled and added to the blockchain, the block reward is issued to the parties involved as follows: 60% to miners, 30% to stakers, and 10% to a treasury.

What is Politeia?

Politeia is a platform that supports Decred’s governance. It facilitates the submission, tracking, and discussion of Decred governance proposals by the stakeholder community. The Politeia web platform facilitates browsing, discussing and submitting proposals.

Reddit-style up/down voting is used for comment sorting. Up/down votes are not anonymous.

Voting on proposals does not happen directly on Politeia, as it requires signatures from your Decred wallet. Voting can be done from Decrediton or on the command line using the Politeiavoter CLI tool.

There are two broad types of proposal:

1. Proposals that aim to establish voter support for a course of action. For example, the direction of software development, or adopting or changing some policy.
2. Proposals that commit to spending DCR from the Decred Treasury. These proposals create a budget that some entity can draw down against as they demonstrate progress towards the proposal’s aim.

To vote, stakeholders must time-lock DCR to buy tickets. While tickets are live they can be used to cast a vote for or against each open Politeia proposal. There is a fee for submitting a proposal (0.1 DCR) to limit the potential for proposal spamming. There is also a fee for registering a Politeia account (0.1 DCR) to limit comment spam and up/down voting sock-puppetry. Fees may be altered if a) they aren’t serving as a sufficient spam-deterrent, or b) the price of DCR changes considerably.

What is the DCR token?

DCR plays a key role in maintaining and operating the Decred network, and consensus participants are rewarded in DCR for expending resources to secure the network.

So, while DCR can be sent, received, and held, the tokens may also be staked to vote on future project developments and to participate in the consensus process. Similar to other cryptocurrencies, the supply of DCR is limited, meaning that according to the software’s rules there will only ever be 21 million DCR. Of note, DCR tokens are issued every 5 minutes with the amount released decreasing by one percent every 21 days.

Who Are the Founders of Decred?

The main driving force behind the creation of Decred is an enterprise called Company 0. Its mission is to use the capabilities of blockchain technology to create better personal data protection and to bring organizational liberty to projects.

Jake Yocom-Piatt is the founder and CEO of Company 0. Currently, he is serving as a project lead for the Decred project. His involvement with cryptocurrency and blockchain technology spans over more than ten years. Code written by Jake Yocom-Piatt has been used in the composition of several Bitcoin-related projects, including the creation of Lightning Network Daemon.

Marco Peereboom is the chief technical officer of Company 0. He is the direct supervisor of several teams on the Decred project, including development, security, and infrastructure. Mr. Peereboom’s career includes positions in companies like Dell, where he was a Senior Architect. He has been at Company 0 for more than five years, and his involvement with the Decred project is essential for the successful launch of the cryptocurrency. 

Decred development updates in 2023

Decred (DCR) has made significant strides in 2023, focusing on enhancing privacy, security, and cross-chain compatibility. Here’s an overview of the key developments:

• Launch of DCRDEX 0.6: One of the major advancements is the release of DCRDEX 0.6, a decentralized exchange that offers new levels of privacy and security for cross-chain swaps. This version introduces direct peer-to-peer cross-chain swaps without intermediaries, solving key issues around privacy and security. The addition of Ethereum and USDC to the DCRDEX facilitates direct layer 1 atomic swaps, enhancing the platform’s versatility and appeal​​.

• Full Self Custody and New Native Wallets: DCRDEX 0.6 emphasizes full self-custody, allowing direct P2P swaps between ETH and other Layer 1 chains like BTC and DCR, without centralized pools or wallets. It also features native wallets for Litecoin and Bitcoin Cash, built on privacy-preserving light wallet technology, which provide a high level of privacy and security​​.

• Elimination of Registration Fee: A significant change in DCRDEX 0.6 is the removal of the one-time registration fee, replaced by time-locked fidelity bonds. Users now lock up funds on-chain for a certain period, after which the bond expires, and they can redeem it. This approach ensures that the bonds are only spendable by the user who posted them, aligning with Decred’s move towards a fully decentralized DEX network​​.

• Hybrid Consensus Mechanism: Decred employs a hybrid consensus mechanism, combining Proof-of-Work (PoW) and Proof-of-Stake (PoS), which provides increased security against 51% attacks and long-range attacks. The PoS component is particularly significant as it allows stakeholders to participate in decision-making by purchasing tickets using their DCR holdings, further decentralizing the governance process​​.

• Atomic Swaps and Cross-Chain Compatibility: Decred’s atomic swap feature enables secure and trustless exchanges of cryptocurrencies between different blockchain networks, thereby promoting interoperability and reducing fragmentation within the cryptocurrency ecosystem​​.

• Lightning Network Support: Decred supports the Lightning Network, a layer-two protocol that enhances the speed and scalability of transactions. This network creates a system of payment channels, allowing for multiple transactions without recording each one on the blockchain, thus reducing transaction fees and improving scalability​​.

• Privacy Features: Decred includes several privacy features like CoinShuffle++, stealth addresses, and support for the Tor network. These features enhance the anonymity and security of transactions on the network. CoinShuffle++ enables users to shuffle their DCR transactions with others, increasing transaction privacy. Stealth addresses generate unique addresses for each transaction, obscuring the transaction trail​​.

• Investment Potential: Decred is recognized for its commitment to innovation and community-driven development, positioning itself as a strong player in the decentralized finance space. Its governance model, focus on privacy, and integration of technologies such as the Lightning Network and atomic swaps make it a promising investment for those who believe in the future of decentralized finance​​.

In summary, Decred’s developments in 2023, such as the launch of DCRDEX 0.6, enhanced privacy features, and robust consensus mechanism, mark significant progress in its goal to provide a secure, private, and scalable cryptocurrency. These advancements, combined with the project’s commitment to innovation and community governance, solidify Decred’s position in the crypto space.

Official website: https://decred.org/

Best cryptocurrency wallet for Decred (DCR)

There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.

HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Decred (DCR)?

Deciding which type of wallet to use depends on a variety of factors, including:

• How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades. 
• What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
• Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
• How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
• What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.

For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.

If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.

Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).

Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).