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Everything you need to know about DAI cryptocurrency

The crypto market is home to a plethora of digital currencies, and investors from all over the world are constantly on the lookout for new assets to add to their portfolios. And if you’re among these people, why not try DAI? 

A stable and reliable investment option, DAI cryptocurrency might be just the thing to include in your investments. Learn more about it in the coming sections and whether or not you should try investing in it yourself. 

DAI cryptocurrency: What is it and how does it work?

First launched in December 2017, DAI is a stablecoin backed by fiat currency, particularly the US dollar. Thus, its price is programmed to maintain a 1:1 ratio with the US dollar, where one DAI token is equivalent to that of one dollar.

It is also an Ethereum-based or ERC-20 token that works on the Ethereum blockchain. This means that it functions under a decentralized framework and that no government or any other organization can gain complete control or shut down its operations.

Because of its stable price, DAI is known to be useful in transferring money and even being used as a hedge currency.  Some crypto traders convert their coins to DAI to protect them from wild price swings. And once they’re ready to trade again, they convert their DAI tokens back to their original crypto.

As of the time of writing, DAI has a price of $0.9997 with a market cap of $9.50 billion. Its performance has improved over the course of the past year and is projected to continue doing so at least for the first half of 2022. 

The advantages of using DAI

Upon learning about DAI, you can see if it’s a good fit for you and your investments. But to make a more informed decision, take a look at the section below and get an idea of DAI’s advantages when used for trading or exchange purposes. 

DAI is less volatile compared to other crypto coins

Since DAI is a stablecoin, it is less volatile compared to other cryptocurrencies. This is because DAI is linked to collateral or physical assets, which is the US dollar. And since the fluctuations of fiat currency are significantly lower compared to that of normal cryptocurrencies, the price changes are not as volatile. 

When making your crypto investment portfolio, it’s important to have a good combination of different digital currencies including stablecoins so you can protect your other coins from price dips. If you won’t be trading, you can convert them to DAI and rest assured that no matter what happens in the market, your assets won’t be drastically affected.

Complete transactions and exchanges 24/7 

The great thing about cryptocurrency is that it can be used for all sorts of activities online anytime and anywhere. There are no limits as to how much you can trade or how often you do it. And you can do the same with DAI cryptocurrency on platforms like Coinbase and Kraken.

Speed is also another element that people love about cryptocurrencies. It does not have to take several business days for your transactions to pull through. All of it will be completed within a few seconds at most and you can enjoy efficient transactions to the fullest! 

DAI can be used for many purposes 

Another advantage that comes with trading DAI is that you can use it for all sorts of purposes! Of course, you can do the typical things like trade it for other cryptocurrencies in exchange platforms and buy certain products or services online. However, the capabilities of DAI go way beyond that as well. 

You can use DAI to place your bets in online casinos, buy NFTs, make money transfers, try your hand at lending services and so much more. It will bring you one step closer to doing almost anything you want online with nothing but cryptocurrencies! And because it’s decentralised, not only is it versatile but also incredibly efficient as well. 

Is it worth investing in DAI?

Yes, DAI cryptocurrency is a worthwhile investment, especially since it’s one of the most reliable stablecoins today and you won’t have to worry too much about volatility with it.

However, it’s important to keep in mind that investing in a cryptocurrency like DAI does not eliminate risks. Although it is a stablecoin backed by a physical commodity, prices can still fluctuate. Traders can enjoy more stability but must also consider risks in all its form such as technical malfunctions and possible crypto exchange hacks before investing in the first place. 

Remember to trade smartly and practically in the crypto market. This is the key to making the most of your investments and reaping the rewards of using cryptocurrencies like DAI.

If you ever want to get your hands on DAI and all of its advantages, all you have to do is visit some trusted exchange platforms like Kraken and Coinbase. You can access them in the blink of an eye and trade them for nearly any other cryptocurrency in the market. 

Enjoy the benefits of stablecoins when you invest in DAI

Now that you have a better idea of what DAI is and how it works, it’s time to start investing! Learning is the first step you need to take to fully take advantage of your crypto investments, and it starts here at Cryptoshimbun. Before you know it, you will become a pro in working with cryptocurrencies like DAI and reaping the benefits of crypto trading. 

So, what are you waiting for? Invest in DAI cryptocurrency today and see what awaits you! Lots of different benefits such as low volatility and seamless trading is up for grabs. For more information about all things cryptocurrency and to read more about DAI, head over to Cryptoshimbun to get your fix! 

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