How to Buy Dai (DAI)

Want to jump straight to how to buy DAI? You can buy DAI on Coinbase, Binance.US and Crypto.com!

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dai

Dai

$0.99964*

^*prices delayed up to 10 minutes

0Buy Dai

MOONBUST

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Cryptocurrencies are known for their volatility, making them a risky investment choice. However, stablecoins like Dai offer a more stable alternative due to their backing by underlying assets, which helps mitigate price fluctuations. Dai stands out in the stablecoin landscape as it is uniquely backed by cryptocurrency rather than fiat currency. This enables it to maintain a peg to the US dollar while providing users the benefits of decentralized finance (DeFi). Discover how to buy DAI with our easy-to-follow guide!

How to Buy Dai (DAI)

Here's a step-by-step guide on how to acquire this popular stablecoin safely and securely.

1. Open an Online Account

The simplest way to purchase DAI is by opening an account with a cryptocurrency exchange that supports DAI token. Popular options include Coinbase, Binance, Kraken and Crypto.com. Dai is also available on a range of crypto brokers’ platforms, which means you’ll get to choose between multiple crypto brokers when you open your account.

To create an account, simply visit the website or app and look for the "Sign Up" or "Create Account option. Provide personal information like your name and email, and prepare to verify your identity with a government-issued ID. 

2. Fund Your Account

Before you can buy or sell cryptocurrency, you’ll need to add a funding method to your account. Most platforms allow you to buy cryptocurrency using wire transfer from your bank account. Nowadays, more and more platforms are now allowing credit card or debit card purchases. Be sure that your correct funding method is linked and cleared before proceeding.

3. Purchase DAI

After you’ve set up and funded your trading account, it’s time to make your purchase. Most platforms offer you access to a multitude of order types, ranging from quick-executing market orders to strictly controlled limit orders. Select the type of order that you want to place and take a look at the current price of DAI. In most cases, the price will be almost exactly equal to $1 USD. Set a price and number of DAI that you’d like to purchase and submit your order through your trading platform.

Depending on current market conditions, it can take a few minutes to one hour to finish filling your order. Once successful, you’ll see your tokens in your exchange wallet.

What Is Dai?

Dai is a stablecoin that runs on the Ethereum network. A stablecoin is a cryptocurrency that provides investors with a much-needed safeguard against volatility by maintaining a consistent price by tying itself to an underlying asset. While cryptocurrencies like Bitcoin rise and fall as market demands change, stablecoins attempt to stay at a single price regardless of market conditions. In most cases, this value is $1 USD. This is why every crypto investor should learn how to buy DAI. Many crypto traders close their positions by selling their volatile cryptos for the stable DAI token or another stablecoin.

Most stablecoins are backed by fiat currency like the USD in bank accounts. Dai is different because it’s backed by fiat currency pegged to cryptocurrency collateral staked on the Maker Dai Stablecoin System. This provides investors with a more transparent stablecoin, as collateral assets held on the Ethereum network can be viewed publicly. Dai works closely with Ethereum as an ERC-20 token. 

Brief History of Dai

Dai was developed by the team behind the MakerDAO and Maker Protocol instead of a single person or small group of individuals. MakerDAO is a decentralized autonomous organization that governs itself entirely based on smart contract executions. MakerDAO tokens (which trade freely on many cryptocurrency exchanges) act as governance tokens, providing investors with a future vote on development matters. These tokens function in much the same way as owning shares of stocks.

Dai was introduced in 2017. Its soft peg to the USD quickly caused it to become among the most popular Ethereum-based stablecoins. Dai is currently the 18^th largest cryptocurrency project when measured by total market capitalization. The coin has a market capitalization of around $5.3 billion with a daily trading volume of around $75.2 million.

Where to Buy Dai (DAI)

Not sure where to get DAi? Consider a few of our favorite options that currently support Dai trading below. 

How to Store DAI Safely

Now that you know how to buy DAI you need to know how to store it safely. A cryptocurrency wallet provides you with a personal set of keys that you can use to store your investments off your exchange of choice. As an ERC-20 token, you can store Dai on almost any wallet that supports Ethereum. There are two types of crypto wallets: hardware wallets and software wallets. Consider our favorite ERC-compliant wallets below if you aren’t sure where to begin. 

• Best Hardware Wallet: Ledger

A hardware wallet is a USB-like device for storing tokens offline,. It offers better protection than software wallets, though at a higher cost. The Ledger Nano X is a top cryptocurrency cold storage device that securely stores private keys for Bitcoin, ERC-20 tokens and other assets offline. It connects to the Ledger Live app for managing transactions and can install up to 100 decentralized applications (dApps) for users interested in decentralized finance.

• Best Software Wallet: MetaMask

Software wallets are applications for desktops or mobiles that store cryptocurrencies using a private online wallet. While they are less secure than hardware wallets due to internet connectivity, they offer a free means to store investments off-exchange. These wallets typically support a wider variety of tokens since they are often open-source.

MetaMask is a free software wallet available as a browser extension and mobile app. It securely stores Ethereum and ERC-20 tokens. It offers a key vault and private keys for quick token transfers and allows users to connect with numerous decentralized apps without compromising personal information.

Trade or Sell Your DAI Tokens

Dai is intended as a store of volatility for investors in the cryptocurrency market. Holding Dai in the long-term won’t result in much of a return for investors, as the price is tied to a 1:1 ratio with USD through the Maker Dai Stablecoin System.

You can profit from an investment in Dai by strategically converting the stablecoin into an altcoin. Wait for that coin to rise in value and then converting back to Dai. As Dai maintains a consistent value, you can buy back into the project of your choice when prices fall again without losing money. This allows you to accumulate more tokens and see a return on your investment.

Current Crypto Prices

The cryptocurrency market can be very volatile. Though stablecoins like Dai are unlikely to see frequent changes in value, non-backed assets like Bitcoin, Ethereum and other altcoins can show high volatility. Understanding how the market is moving day-to-day can help you enhance your crypto trading and make the most out of your investments.

Learn more about the market at a glance with our chart below. 

Is DAI a Good Investment?

If you’re a new cryptocurrency investor, it can be confusing to understand the differences between altcoins and stablecoins. Stablecoins like Dai allow investors to access a stable resource when investing. This can be a crucial element for day trading and scalping in such a volatile market. If you’re considering becoming a short-term cryptocurrency investor, learn how to use stablecoins effectively before you enter the market. This will help you avoid fees that come with converting your coins to fiat currency each time you want to exit a trade position.