How To Buy Maker (MKR)?

A common question you often see on social media from crypto beginners is “Where can I buy Maker?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Maker on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.

Step 1: Create an account on an exchange that supports Maker (MKR)

First, you will need to open an account on a cryptocurrency exchange that supports Maker (MKR).
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 Maker (MKR) 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 Maker (MKR)

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 Maker (MKR) or Maker (MKR) trading pairs. Look for the section that will allow you to buy Maker (MKR), and enter the amount of the cryptocurrency that you want to spend for Maker (MKR) or the amount of fiat currency that you want to spend towards buying Maker (MKR). The exchange will then calculate the equivalent amount of Maker (MKR) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Maker (MKR) 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. 

Simplecryptoguide.com

What Is Maker (MKR)?

Why is DAI “crypto-collateralized”?

If you don’t return the cash, then the pawnshop can simply sell your jewelry to recoup their loss. In this way, the collateral gives them a safety net. You can see the same principle applied by banks – you might choose to collateralize a car or house in exchange for a loan, for example.

Similarly, a fiat-backed stablecoin is collateralized by fiat money. A user hands over their cash (the collateral) and receives tokens in return. They can return those tokens to the issuer if they want, but if they don’t, the issuer still has the cash.

Things are a bit more nuanced than that with Maker – let’s check it out.

Overcollateralization and CDPs

You’ve probably noticed that crypto markets are quite volatile. You often see the price of BTC, ETH, and other cryptocurrencies change rapidly. Your holdings could be worth $4,000 when you go to sleep and $3,000 when you wake up the next day. To a lender, that’s pretty risky. At least with gold jewelry, they can expect it to remain relatively stable in value. If you fail to repay your loan, the lender can simply sell your jewelry to reclaim their money.

If you took out a loan of $400 (locking up 1 ETH worth $400 as collateral) and the price of ETH dipped to $300, the lender would be out of luck. They could either ask you to give them more ETH as collateral, or they could liquidate it and eat the loss of $100.

A user can add more than that if they want. In fact, that’s what most users do to stay safe. But, if the amount of collateral falls below 150%, they’ll incur a hefty penalty fee. Eventually, the user risks liquidation if they fail to repay their DAI with interest (called Stability Fee).

How does the value of DAI remain stable?

Well, it boils down to incentives and smart contracts. When DAI dips below the peg price, the system makes it attractive for users to close their CDPs by repaying their debts – specifically, because interest rates are raised. This reduces the total DAI supply, as the amount repaid is destroyed. Should the price exceed a dollar, the opposite occurs: users are incentivized to open CDPs as interest rates are lowered. This creates new DAI and increases the total supply.

DAI’s use cases

Official website: https://makerdao.com/en/

Best cryptocurrency wallet for Maker (MKR)

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 Maker (MKR)?

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).