Emre Ata
- Dec 26, 2021
- 6 min read

Why Should You Buy DAI Coins? (Dai Coin Analysis) How to buy Dai?

Dai Stablecoin is intended to act as a stable interface between cryptocurrencies and fiat currencies. Due to the almost non-existent volatility of the DAI, it is suitable for use as a means of payment. It is currently used for the granting and use of decentralized loans and other offers within the maker of the network. In addition, DAI Coin offers investors the chance to secure their investments in cryptocurrencies through DAI. Stablecoins are no longer unique and many coins of this type can now be found on the market and traded on many exchanges. The concept of stablecoins is not new. There are coins that are secured by US balances in accounts. They work in a similar way to the dollar in the past, when it was backed with gold. However, there is a catch to the concept. The balances used to secure crypto assets to financial law and can be frozen under certain circumstances. In such cases, token holders receive an equivalent value in promissory notes and can only hope that the collateral will be released at some point. In such cases, the stablecoin becomes a trap and loses its usefulness.Why Should You Buy DAI Coins? (Dai Coin Analysis) How to buy Dai?

Put Dai on CFDs?

If you want to invest in cryptocurrencies, you not only have to decide which coins to buy but there are also several alternatives available for the investment. For example, investors can buy real coins or invest in so-called CFDs.

CFDs are so-called contracts for difference that are based on underlying values. With these investment papers, investors bet on rising or falling values of an investment value. In this case, cryptocurrencies. In contrast to buying real coins, investors with a CFD never own an asset, but only participate in its computing. Both gains and losses are possible here.

If you decide to trade with crypto CFDs, there are various alternatives available. If the value of the currency rises, then buying is initiated. If the price falls below the previously determined base value, the situation is sold again. Investors can also use leverage for their CFD investment. With such levers, it is possible to make a lot of profit even with small investments however, conversely, an equally high loss is possible.

If you are now wondering whether it makes sense to invest in real coins or in CFDs, you should first think about why you should invest in cryptocurrencies at all:

If you are interested in the innovation of the project and the use of the coins, you should definitely decide to buy real coins on a crypto exchange. Anyone who wants to build up and formulate a wallet long and short term is better advised to invest in crypto CFDs.

The Best Time To Buy DAI Stablecoin

Nobody can really define a good or bad time to buy cryptocurrencies. It is safe to buy them when DAI is on a downward curve and the price is low. However, there is no guarantee that the price will rise again. The market is still very young and subject to strong fluctuations.

From our point of view, a lot will happen in the entire market and prices will continue to rise in the long term. That is why we think it is right to invest in the market now but to bring the investment into different currencies. The stablecoin can serve well to hedge volatile cryptocurrencies. Due to the lack of price fluctuations, there is neither a good nor a bad time to buy the DAI.

Is It Better To Invest In Dai In The Long Term Or In The Short Term?

From our point of view, DAI is suitable as a long-term store of value or to hedge our cryptocurrencies. DAI could also be completely worthwhile for investors who want to keep key currencies such as dollars in safekeeping for the long term. In all probability, there will be no increase in value, but DAI could represent an opportunity for forms of investment such as savings books or overnight money accounts. However, we must warn at this point. Cryptocurrencies are new and nobody can predict in the long term how secure the strategies behind the currencies are.

Anyone looking for a good stablecoin to hedge their volatile cryptocurrencies is well advised in our opinion with DAI. The constant rate has been hovering around $ 1 per unit since it launched. DAI can also score points with us as a usable token. The ability to take out crypto loans without the involvement of a third party is a big step in the right way for new economic services.

Basically, the stablecoin will be as stable as the asset that secures it. In addition, there are some issues that affect stablecoins. One of them is, as already mentioned - the lack of transparency about which reserves exist and where these reserves are held. This becomes particularly an issue if a stablecoin cannot produce a license.

Dai Fixes Considerable Fluctuations In Rates

The Dai Coin wants to focus on the main problem of all cryptocurrencies, namely the considerable fluctuations in rates. Due to the volatility, it is difficult to keep values and prices constant. For use in practice, as a means of payment, for loans or insurance, such as can be processed with fiat money, this makes digital currencies unsuitable - because the corresponding amounts would have to be continuously adjusted.

So-called stablecoins are intended to create an interface to fiat money. Investors who buy Dai should be able to rely on the fact that 1 DAI always corresponds to approximately 1 dollar, with less fluctuations, as is also the case with the USD / EUR rate. Stablecoins like Dai are not a new method and meet the needs of investors and users for stability. In short, Dai is a hedge for anyone investing or trading in cryptocurrency.

Dai Coin Wallet

In order to be able to buy and store Dai, a so-called crypto wallet is required. The wallet is a virtual purse in which not coins are stored, but so-called keys. The codes allow the owner access to his account and are required for authorization. The security of the wallet is so important because the keys are the only authorization - because trading is largely anonymous.

But what is a cryptocurrency anyway? Altcoins are not issued and managed from a point but rather generated by the client through computing. This can be done by transactions that are stored in blocks.

Each block is added to the blockchain and replicated on all connected PCs in the platform - anonymous and largely unmanipulated. The value of a cryptocurrency depends on supply and demand, just like with other economic tools. Since the development of altcoins, in particular, is often by leaps and bounds, the prices are very high.

Stablecoin: Stable Cryptocurrencies

Although conventional currencies offer profit in many cases due to the fluctuating exchange rates, so far only a few of them are suitable as everyday currency. Because a quality feature of a currency is its stability.

An example of this are comparatively stable currencies such as the euro or the dollar. And even these are subject to fluctuations. If you take a look at emerging or developing countries struggling with high inflation, the risk of volatility becomes clear. Money is losing its value, its purchasing effect, investors are losing confidence in the currency, investments are falling, and the currency is continuing to lose value. This risk also exists with cryptocurrencies. In order to be useful as a means of payment and investment for users, a cryptocurrency must be stable.

Only a little loss of value can be tolerated, because, as in all finances, this creates the motivation for cryptos not to hoard money, but to spend it. Stablecoins want to offer this anchoring. So you can buy Dai for a more or less fixed rate.

Trading cryptocurrencies is interesting because of the high demand, but it also brings with it inherent risks. If you do not want to buy coins like Dai, you can trade with contracts for differences on digital currencies - because the so-called CFDs offer the advantage that you can also benefit from falling prices.

The Dai Rate: Stable At 1 Dollar

In order to be able to fulfill its ability, a stablecoin like the DAI must share the most important by which fiat money is also measured. This means that the coin must be just as suitable as a means of payment for trading in goods or providers as it is for maintaining the value of assets over a longer period of time. In order to be able to do this, the stablecoin must represent a reliable unit of account with which values can be measured and compared. Currencies such as the pound or the US dollar meet these and are therefore referred to as key currencies.