Table of content

Dai Token (DAI): Everything you Wanted to Know before Investing!

Dai token (DAI) is currently the 31st-largest cryptocurrency (over US$6.47 billion market capitalization). In terms of market cap, DAI is one of the trending coins among 12,831 cryptos in the crypto market. Is it a good investment? Should you invest in it? To answer all your queries, let me walk you through various aspects of Dai coin (DAI) so that you can decide whether to buy TRX tokens or not.

What is Dai Token (DAI)? How does it Work?

Dai token or DAI is a stable-price cryptocurrency, most popularly called Stablecoin, that is based on the Ethereum blockchain. Though MakerDAO was founded originally in 2015 by Rune Christensen (a Danish entrepreneur), DAI stablecoin was not created by a single person. Instead, a small group of co-founders founded DAI. 

Both MakerDAO and Maker Protocol governs the software development as well as the issuance of new tokens. It was only in November 2019 that the current form of DAI was launched. 

The DAI price is:

  • Soft-pegged to the US Dollar (USD)
  • Collateralized by a mixture of other cryptos, which get deposited into smart-contract vaults whenever a new Dai token is mined.

There are two very important aspects associated with DAI and they are:

  1. Multi-Collateral DAI 
  2. Single-Collateral DAI (SAI)

Both the above concepts are different from one another. SAI is essentially the earlier version of the DAI token. The current form of DAI is collateralized by many cryptocurrencies, which is why it is called Multi-Collateral DAI. SAI is the earlier version, which can be collateralized by only a single cryptocurrency. Another important distinction with the current form of DAI is that SAI does not support the DAI Savings Rate (which enables holders of DAI coins to earn savings rate). 

Dai (DAI): Facts & Figures

All these facts and figures (as of Oct 18, 2021) will help you to make a decision on investing in Dai:

  • Dai DAI Price: US$1.00 (Current Price)
  • Trading Volume (24h volume): US$570,708,229
  • All-Time High (ATH) Price: US$1.14 (reached on Sep 18, 2020)
  • All Time Low (ATL) Price: US$0.8935 (reached on Jun 14, 2021)
  • 24h Low: US$0.9987
  • 7d Low: US$0.9985
  • YTD (Year-To-Date) Return: -0.47% YTD (Year-To-Date)
  • Market Cap: US$6,475,190,467
  • Crypto Rank (in terms of market cap): 31
  • Fully Diluted Market Cap: US$6,473,128,220
  • Max Supply: ---
  • Total Supply: 6,474,952,202
  • Circulating Supply: 6.47 Billion DAI

What Makes DAI Unique? What are its Benefits?

  1. The main advantage of the DAI token is that it is soft pegged to the USD price. 

A soft peg regime is a special kind of exchange rate, which keeps the value stable when pegged against either a single currency or a basket of multiple currencies. A soft pegged currency lies, conceptually, in the middle of a floating exchange rate and a fixed exchange rate regime. As soft pegging provides a certain degree of limited flexibility in monetary policy, it allows central banks as well as banks to deal with shocks in the economy.  

  1. The high liquidity cryptocurrencies (like Bitcoin BTC) can experience extreme volatility. BTC prices can go up or down by 10% in a single trading day. To avoid so much volatility, DAI is soft pegged with US Dollar. It gives Dai tokens a stable price, offsetting a significant amount of price fluctuation. 
  1. Neither a private company nor a single individual or entity manages DAI coins. A decentralized autonomous organization called MakerDAO manages DAI with the Maker Protocol software. 
  1. The entire system becomes transparent and more corruption proof, thanks to the Ethereum-powered self-enforcing smart contracts, which:
  • Manages issuance and burning of DAI tokens and
  • Publicly records them.

How Is the DAI Network Secured?

As the Dai token is based on the Ethereum blockchain and also ERC-20-compatible, the DAI network is secured by the Ethash algorithm of Ethereum. 

Where can you Buy DAI Tokens?

You can buy DAI coins in almost all reputed cryptocurrency exchanges including:

  1. Coinbase Pro
  2. HitBTC
  3. Binance
  4. OKEx
  5. Compound
  6. Uniswap, and others.

You can use credit cards, debit cards, or money transfers from a bank account to fund your cryptocurrency trading or investing account in a leading cryptocurrency exchange. 

The most popular price pairs of DAI are:

  • DAI/USD
  • DAI/ETH
  • DAI/BTC
  • DAI/USDT
  • DAI/USDC
  • DAI/CRO
  • DAI/HUSD
  • DAI/MXN
  • DAI/ARS
  • DAI/THB
  • DAI/IDR, and many more.

Before investing, check out historical data of token DAI, crypto news, Dai DAI price charts, DAI to BTC exchange rate, and others.

What are the Best Crypto Wallets to Store Filecoin Tokens?

The best Filecoin wallets to store FIL coins are:

  1. Ledger Nano X
  2. Ledger Nano S
  3. MyEtherWallet
  4. Coinomi
  5. Atomic Wallet
  6. Exodus
  7. Jaxx
  8. MetaMask

Invest in Dai (DAI) and Other Cryptocurrencies

You can buy and sell Dai (DAI) and other virtual currencies against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges (centralized or decentralized exchanges), crypto APIs, and bitcoin cash markets. Use Dollar Cost Averaging DCA strategy to invest in cryptos to minimize the risks associated with high volatility. 

If you want to increase your investment explosively in the coming 5-to-10 years, buy crypto coins now. Keep an eye on the market news, price statistics, block times, blockchain news, and others to time your trading of Defi protocols and tokens for maximum profit. 

You can also diversify your crypto coin portfolio by including other cryptocurrencies such as DAI, FIL, ETC, WBTC, BCH, BTC, AAVE, Ripple XRP, Bitcoin Ether ETH, Bitcoin Gold (also called Bit Gold), Bitcoin Cash BCH, Basic Attention Token, Ethereum Classic, Shiba Inu SHIB, Binance Coin, Wrapped Bitcoin (some also call it wrap bitcoin or wBTC), USD Coin, Gemini Dollar, ERC20 tokens (created on Ethereum blockchain), DeFi (Decentralized Finance) coins, coins based on Binance Smart Chain, nonfungible tokens NFTs, and others. 

Invest in cryptocurrencies, various types of stocks, mutual funds, index funds, real estate, and others to improve your personal finance. If possible, get help from a portfolio manager or wealth management firm for maximum return.