How To Buy Maker (MKR)?

MakerDAO 500x286 1 - How To Buy Maker

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:

1

 Binance

Create Binance Account - How To Buy Maker

Fees (Maker/Taker)            0.075%*-0.1%*

Cryptocurrencies
Available for Trade                             500
+

Sign-up bonus
 10% reduced trading fees*

Available in
Europe, Asia, Oceania, Africa

2

 MEXC

Create MEXC Account

Fees (Maker/Taker)                    0.2%*-0.2%*

Cryptocurrencies
Available for Trade                             1500
+

Sign-up bonus
 10% reduced trading fees & up to $170 in USDT vouchers*

Available in
North America, South America, Europe, Asia, Oceania, Africa

3

 Coinbase

Create Coinbase Account - How To Buy Maker

Fees (Maker/Taker)             1.49%*-3.99%*

Cryptocurrencies
Available for Trade                              150
+

Sign-up bonus
 $10 sign-up bonus*

Available in
North America, South America, Europe, Asia, Oceania, Africa

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.

How to create a Binance account

Create Binance Account

Show Detailed Instructions

Step 1: Go to the Binance website.

Step 2: On the registration page, enter your email address, and create a password for your account.
Then, read and agree to the Terms of Service and click “Create Account”.

How To Create a Binance Account Step 2

Note: Your password must be a combination of numbers and letters.
It should contain at least 8 characters, one UPPER CASE letter, and one number.

Step 3: Complete the Security Verification.

How To Create a Binance Account Step 3

Step 4:
The system will send a verification code to your email. The verification code is valid for 30 minutes. If you can’t find the email in your inbox, check your other mail folders as well, or click “Resend Email” to resend.
How To Create a Binance Account Step 4
Congratulations, you have successfully registered on Binance.

How to complete KYC (ID Verification) on Binance

Step 1: Log in to your Binance account and click “User Center” and then “Identification”.
 

How To Complete KYC ID Verification on Binance Step 1 - How To Buy Maker

Step 2: click “Start Now” to verify your account.

How To Complete KYC (ID Verification) on Binance Step 2

Step 3: Select your country of residence.
Ensure that your country of residence is consistent with your ID documents.

How To Complete KYC ID Verification on Binance Step 3 - How To Buy Maker

You will then see the list of verification requirements for your specific country/region. Click “Continue”.
How To Complete KYC (ID Verification) on Binance Step 4

Step 5: Enter your personal information and click “Continue.”

Make sure that all the information entered is consistent with your ID documents.
You won’t be able to change it once confirmed.
How To Complete KYC ID Verification on Binance Step 5 - How To Buy Maker
Step 6: Next, you will need to upload pictures of your ID documents. Choose the type of ID and the country your documents were issued. Most users can choose to verify with a passport, ID card, or driver’s license.
Refer to the respective options offered for your country.
How To Complete KYC (ID Verification) on Binance Step 6

Step 7: Follow the instructions to upload photos of your document. Your photos should clearly show the full ID document.

For example, if you are using an ID card, you have to take photos of the front and back of your ID card.
How To Complete KYC (ID Verification) on Binance Step 7
Step 8: After uploading the document photos, the system will ask for a selfie. Click “Upload File” to upload an existing photo from your computer.
How To Complete KYC ID Verification on Binance Step 8 - How To Buy Maker
Step 9: After that, the system will ask you to complete face verification. Click “Continue” to finish face verification on your computer. Alternatively, you can move your mouse to the QR code on the bottom right to complete the verification on your phone instead. Scan the QR code via your phone’s camera to finish the face verification process.
Do not wear hats, glasses, or use filters, and make sure that the lighting is sufficient.
How To Complete KYC ID Verification on Binance Step 9 - How To Buy Maker
After completing the process, please wait patiently.
Once your application has been verified, you will receive an email notification.

How to buy cryptocurrency on Binance

Step 1: Log in to your Binance account and click “Buy Crypto” and then “Credit/Debit Card”. 

How To Buy Cryptocurrency on Binance Step 1

Step 2: Here you can choose to buy crypto with different fiat currencies. Enter the fiat amount you want to spend and the system will automatically display the amount of crypto you can get. When you have selected the amount you wish to spend then press “Continue”.

Note: You might not be able to purchase every cryptocurrency directly using fiat, if you’re looking to purchase something that isn’t offered in the currency list on this page, then you will want to purchase USDT. We will then show you how to exchange that on the spot-market for the cryptocurrency that you want in the next section of this guide.

How To Buy Cryptocurrency on Binance Step 2 - How To Buy Maker

Step 3: Click “Add New Card”. Then enter your credit card details and your billing address.

How To Buy Cryptocurrency on Binance Step 3 - How To Buy Maker

Step 4: Check the payment details and confirm your order within 1 minute. After 1 minute, the price and the amount of crypto you will get will be recalculated. You can click “Refresh” to see the latest market price. You will then be redirected to your bank’s OTP Transaction Page. Follow the on-screen instructions to verify the payment.

How To Buy Cryptocurrency on Binance Step 4

How to Conduct Spot Trading on Binance

Step 1: Log in to your Binance account.
Click on “Classic” under “Trade” on the top navigation bar.

How to Conduct Spot Trading on Binance Step 1

Step 2: Search and enter the cryptocurrency you want to trade.

How to Conduct Spot Trading on Binance Step 2 - How To Buy Maker

Step 3: Set buying/selling prices and buying/selling amount (or exchange total). Then click on “Buy”/”Sell”.

(Note: The percentages under the “Amount” box refer to percentages of the total account balance.)

How to Conduct Spot Trading on Binance Step 3 - How To Buy Maker

Step 4: If you don’t want to set a manual price, you can place a “Market Order” to set the buying/selling price automatically.

How to Conduct Spot Trading on Binance Step 4

Hide Detailed Instructions

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)?

Maker is an Ethereum-based system that allows users to mint DAI, a token that closely tracks the US dollar price. No single entity is in charge. Instead, participants hold the governance token (MKR), which grants them voting rights on changes to be made to the protocol. This is where the DAO (decentralized autonomous organization) part of the name comes from – the protocol is effectively governed by a distributed network of stakeholders that hold MKR tokens.
In this decentralized ecosystem, smart contracts and game theory allow DAI to maintain a relatively stable value. Aside from that, they’re functionally identical to their fiat-backed cousins. You can send them to friends and family, use them to buy goods and services, or stake them in yield farming.

Who Are the Founders of Maker?

MakerDAO, the first entity inside the larger Maker ecosystem, was created in 2015 by Rune Christensen, an entrepreneur from Sealand, Denmark.

Christensen graduated from Copenhagen University with a degree in biochemistry and studied international business at the Copenhagen Business School. Prior to MakerDAO, he co-founded and managed the Try China international recruiting company.

Why is DAI “crypto-collateralized”?

When you provide collateral, you lock up something of value in exchange for a loan. When you repay the loan (plus a fee), you’ll get your item back. Consider a pawnshop, where you can hand over your jewelry (collateral) in exchange for cash. You’re given a period in which you can buy back the jewelry by returning the cash (and a little extra).

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.

A crypto-collateralized stablecoin – like DAI – does something functionally similar, except you use crypto assets as collateral, and the issuer is just a smart contract. At its core, the contract says something like issue X amount of tokens for every Y amount of ETH deposited. Return Z amount of ETH when the tokens are returned.

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.

That’s why Maker uses the concept of overcollateralization. It’s a big word, but a simple idea: when a borrower wants to mint the DAI stablecoin, they provide more collateral than the amount they want to take out. That way, even if the price dips, the position should still be covered.
In practice, users lock up their ether (or other supported assets) in something called a collateralized debt position (CDP). At the time of writing, they must provide collateral of at least 150% the value of the DAI they’re borrowing. In other words, if you wanted to mint 400 DAI (remember, each is worth $1), you would need to provide 1.5x that value in collateral – $600 worth of ETH, in this case.

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?

1 DAI = 1 USD (more or less). But why?

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

As previously mentioned, you can use DAI like any stablecoin – trade it against other cryptocurrencies, use it to pay for things, or even burn it for fun.
MakerDAO was arguably one of the earliest Decentralized Finance (or DeFi) protocols. After all, DAI is a decentralized stablecoin and DeFi is all about building a “financial system, but on the blockchain.” It doesn’t get much more DeFi than that.
There is a growing list of products and services that accept DAI. You might have noticed some DeFi-oriented decentralized applications where it can be used. Examples include PoolTogether and SushiSwap, as well as the myriad of yield farming systems.

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).

Ledger Hardware Wallet
Trezor Hardware Wallet

Market Overview

Coinmarketcap.com

Find the latest Maker (MKR) price chart, trade volume, market cap, and other vital information to help you with your cryptocurrency trading and investing.

Coinmarketcap will be your cryptocurrency go-to for just about everything. Here you can see the following:

Market Capitalization And Daily Trading Volume

Current Market Price Of Every Cryptocurrency Relative To USD (And Some Local Currencies)

Circulating And Total Supply

Historical Charts With Prices Relative To USD, Bitcoin (BTC), And Ethereum (ETH).

CMC - How To Buy Maker
Last updated Apr 29, 2022

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