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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

 Coinbase

Create Coinbase Account - How To Buy Maker

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

Cryptocurrencies
Available for Trade                              75
+

Sign-up bonus
 $10 sign-up bonus*

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

3

 FTX US

Create FTX US Account

Fees (Maker/Taker)            0.10%*-0.40%*

Cryptocurrencies
Available for Trade                             45
+

Sign-up bonus
 5% reduced trading fees*

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.

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/

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

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