DAI is a stablecoin issued by MakerDAO. Its primary goal is to preserve a 1:1 peg between the value of its token and the USD, that is like stablecoins. It is backed and stabilized by Maker and allows anyone to leverage collateral assets and produce DAI on the Maker platform using unique smart contracts known as CDPs. Stablecoins that include DAI are an indispensable ingredient of DeFi markets and one of the foundational basis of such markets.
For individuals interested to buy DAI, it is essential to consider the factors that affect its price. Crypto-collateralised stablecoins, which include DAI, are backed by crypto assets and aren’t directly connected to the traditional financial system. But it still aims to maintain a (soft) peg to the USD, trading at or around 1 USD on average. Similar to any other token, the price of DAI is influenced by the level of demand.
Additionally, users producing DAI using the CDPs are required to pay stability fees, which serve as interest payments on the loan. As this fee increases, it gets more expensive to produce Dai, which decreases the supply and increases the price.
For those asking how to purchase DAI, there are many ways depending on one’s choices and convenience. Many major exchanges offer DAI, paired with others for trading. Additionally, you will find decentralized exchanges, or DEXs, which support DAI.
These DEXs allow users to buy DAI instantly, using only a compatible wallet. Those who want to buy DAI in large quantities can go for the OTC (over-the-counter) market. They are popular options for institutional investors and high-volume traders.
Since 2017, DAI has been circulating and has kept a stable value relative to the U.S. dollar. Whether purchasing DAI is timely or not is dependent on an investor's investment goals, strategy, and risk tolerance. However, before acquiring DAI, it is vital to conduct extensive research to comprehend the risks involved.
A frequently asked question amongst numerous users is how to buy DAI with debit cards instantly. Depending on what payment methods are available in a particular exchange, users may or may not be able to buy DAI with debit cards. Major exchanges support debit card payments for crypto purchases, including DAI. However, this also depends on the location the user is accessing the service from.
To purchase DAI with debit cards, users usually have to register on an exchange and go through the required identity verification process. They then need to link their debit card to their exchange account and start buying DAI. Users should take note of any additional fees, such as transaction fees, before confirming the purchase.
To buy DAI online with credit cards, users first must select a cryptocurrency exchange that supports credit card payments. In the majority of exchanges, users are required to go through an identity verification process to prevent fraud. They then have to link their credit card to their exchange account, after which one can buy DAI with credit card instantly.
It's important for users to note that buying DAI with credit cards may incur higher fees compared to other payment methods, such as bank transfers. Some credit card issuers may even charge higher interest rates and fees as they treat crypto purchases as cash advances.
After you have bought DAI, you can use them for a variety of purposes. For instance, DAI can be used as a store of value since it maintains a stable value relative to USD. DAI is also accepted by some DEFI platforms as collateral for granting loans. There is also a growing list of companies that accept DAI as payment. Examples include Purse.io, MyCryptoCheckout, Utrust, Bitrefill, and many more.
Users can also convert their DAI back to fiat currency such as USD if they want to cash out. As the crypto ecosystem grows, we may encounter more merchants and companies starting to adopt DAI as a payment option. However, before buying DAI, you should always understand the risks involved by conducting your own research. You should also use a secure wallet to store your DAI stablecoins.