Easy way to Buy Dai (DAI)DAI(DAI) Online with Wigwam crypto app

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DAI | DAIDAI1,223 DAI

How to buy and hold DAI with Wigwam

DAI

1. Choose a token number that you want to buy

2. Create a wallet, where to store your crypto

3. Pay with credit card

227.34 DAI

4. Check your crypto in the created wallet

Why Wigwam is the best crypto wallet for DAI (DAI) storage

Ultimate security, only you have access to your DAI tokens

Send, Receive, Store your DAI tokens free and without limitations

Check the real-time value of your crypto tokens

Buy, Sell, Exchange DAI (DAI) directly in the wallet

Stake DAI (DAI) by connecting Wigwam to the popular DeFi dApps

No KYC or personal data collected

Why Wigwam is the best crypto wallet for DAI (DAI) storage

DAI token review

DAI is a stablecoin crypto token with a value equivalent to one USD and is used as a payment and value storage method in the crypto world. 

Use cases

  1. Hedging crypto funds. Traders and investors can use DAI to protect their funds from volatility and store value without exiting the crypto ecosystem.
  2. DeFi applications often use DAI to create trading pairs on DEXes, or it can be used in lending protocols, yield farming, and other dApps. At the moment, more than 400 apps have integrated DAI into their work.
  3. Remittances and Payment. DAI can be used for cost-effective cross-border transactions and as an alternative means of payment, especially in countries with underdeveloped banking systems.
  4. Smart Contracts integrations. DAI can be integrated into smart contracts where a stable medium of exchange is required. A good example is to calculate collateral DAI value for crypto in lending protocols.

Technical overview

MakerDAO is a decentralized autonomous organization on the Ethereum blockchain whose members are responsible for the specifics of DAI issuance. 

To receive DAI, a user should stake other cryptos as collateral; some of the tokens that are accepted in staking are ETH, BAT, LINK, WBTC, COMP, ZRX, and KNC.

Everything works with smart contracts and doesn’t require intermediaries or custodians who will hold your crypto.

To account for the possibility of high volatility of the collateral, DAI requires over-collateralization of 150-200%. If the price of collateralized crypto drops below the required level - this position is automatically liquidated. This crypto will be sold via an auction for DAI, and the required number of these tokens will be returned to MakerDAO.

Economic value 

At the moment, around 5.3B DAI tokens are in circulation, making it one of the most popular stable coins on the market. Because of its decentralized structure, DAI has become a cornerstone of the DeFi movement and allowed the creation of truly censorship-resistant dApps on Ethereum. 

The biggest economic challenge for this token is maintaining its peg to the USD, especially when rapid market fluctuations can significantly change the underlying collateral value. 

Challenges

  1. High gas fees for transactions. Because DAI is issued on Ethereum, users may pay high gas fees to conduct a transaction with DAI, and this issue significantly reduces usage cases for this token.
  2. Collateral risk - the value of collateral backing DAI can fluctuate significantly, and it may impact DAI stability.
  3. Regulations. At the moment, there is no solid regulation of stablecoin issuance, however, in the future, it might be changed, increasing difficulties in working with DAI
  4. Technical complexity. All DAI systems are based on smart contracts, reliable oracles, and complex algorithms of pegging DAI value. This complexity increases the risks of supporting this token.

DAI represents an innovative approach to creating a stable digital currency, and it’s a great example of a truly decentralized and censorship-resistant system in the DeFi world. However, it faces specific challenges related to evaluating collateral factors and technical complications of supporting the whole MarketDAO system.

Disclaimer

This article is for informational purposes only and should not be interpreted as financial or investment advice. The views expressed herein represent solely the opinion of the author and are not intended to provide specific trading or investment recommendations. We do not guarantee the accuracy, completeness, or reliability of the information contained in this article. The cryptocurrency market is known for its high volatility and unpredictable fluctuations. Investors, traders, and anyone engaging with cryptocurrency are advised to conduct thorough research, consider a variety of perspectives, and acquaint themselves with applicable local regulations prior to making any investment decisions.

FAQ

DAI is a popular crypto token and it can be bought on popular crypto exchanges: Binance, Coinbase, Bitfinex, etc. Also, you may buy this token in a few clicks in our Wigwam crypto wallet. You need only install this extension in your browser. 

DAI is not a PoS token so it is not used in staking to protect blockchain work as ETH or AVAX. However, DAI is commonly used in DeFi applications and can be staked on various lending platforms, liquidity pools, yield farming programs. Before choosing a project where you plan to stake DAI - conduct your own research. You should know that DeFi is considered a very risky field of investments.

To see your DAI transactions or activities on the blockchain, you can use a blockchain explorer that supports Ethereum, as DAI is an ERC-20 token. Some of the good examples are Etherscan or Blockchair.

You need to be sure that your wallet supports ERC-20 tokens. If you send DAI on your wallet but don’t see them - try to add them manually. Click  the “Add token” button and enter information about DAI: Contract address on Ethereum is 0x6b175474e89094c44da98b954eedeac495271d0f, Symbol:DAI, decimals: 18. Confirm your action and these tokens should be visible in your wallet.

There is many risks associated with buying DAI, some of them are:

Smart-contract vulnerabilities, collateral volatility, new regulations, dependence on MakerDAO, etc. It's important to conduct thorough research and consider these risks in the context of your investment activity.