5 Steps to Buying Dai Safely

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Dai (DAI) is one of your options if you are looking for a stablecoin that tracks the US dollar. It is also a rarity insofar as it has no central organization that manages it. While most stablecoins have companies that strive to maintain their prices, Dai is decentralized and uses smart contracts to keep the price at $ 1.

Buying crypto can be tricky, and it is possible to lose money if you are not careful. Follow these steps to make your Dai purchase go smoothly.

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1. Decide where you want to buy Dai

To get started, you’ll need an account on a cryptocurrency exchange. If you already have one, check to see if the exchange has Dai for sale. Most of the best cryptocurrency exchanges list Dai, so you might be able to buy it right away through your current exchange.

If you haven’t signed up for a crypto exchange yet, pick one you like with a good reputation. Here are some quality exchanges that sell Dai:

2. Configure your exchange account

Creating an account with a crypto exchange is normally a two-part process.

First, you provide basic information including your name, email address, and phone number. You also set up a password for your account and verify the email address and phone number you provided.

This is how you create an account, but you also need to verify your identity. Exchanges use identity verification to comply with government regulations and ensure that customers are not using cryptocurrency for illegal activities, such as money laundering.

For identity verification, the exchange will likely ask for all of the following:

Social security number Date of birth Physical address Scan of valid ID 3. Transfer money from your bank account

In most cases, a wire transfer from a bank account is the best way to buy crypto. Each exchange is different when it comes to the payment methods it accepts. The exchange you have chosen may also allow you to pay using credit cards, debit cards, or PayPal.

These methods usually include additional fees which will reduce your purchase. Transferring money from a bank account is free with most reputable exchanges. There are always transaction fees to pay, but you aren’t bothered by unnecessary additional costs, and that’s important for cryptocurrency investing.

Bank transfers are not instant. Expect it to take several business days for funds to be available in your exchange account.

4. Check the price

Since Dai is a stablecoin pegged to the US dollar, it is designed to have a price of $ 1. There may be fluctuations here and there, but its smart contracts usually correct for price movements quickly.

Before buying Dai, check the current price. If it’s $ 1 or less, you can proceed with your purchase. In the rare case that it is more than $ 1, you have to wait to buy it so that you don’t pay too much.

It is normally not a good idea to try to time the crypto market. Stablecoins are an exception due to the way they correct their prices.

5. Make the purchase

At this point, you are ready to buy. Choose the “Buy” option on your trade-in’s web platform or app. Select Dai as the cryptocurrency to buy and enter the amount of your balance you want to spend on it.

Your crypto exchange will provide an overview of the transaction, which includes the amount you spend, the amount of Dai you will receive, and the transaction fees. Check everything and if you are satisfied, confirm the purchase.

This is the whole process of how to buy Dai safely. Once it’s in your account, you can transfer it to a crypto wallet to keep it safe, send it to someone else, or lend it out and earn interest on it. Anytime you want to buy more in the future, you can do so through your exchange account.

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