Cryptocurrency projects like Bitcoin and Ethereum tend to attract the majority of the industry’s attention, but there is also a wide array of smaller altcoin offerings that present opportunities to investors. One such opportunity is Maker, a decentralized autonomous organization (DAO) that allows users to lock in their Ethereum coins to produce a backed stablecoin called “Dai.”
Dai is unique because, instead of being backed by fiat currency like other stablecoins, Dai is backed by Ethereum. The single-collateral system allows anyone to leverage their Ethereum while also keeping the price of 1 Dai around $1 USD. As of 2019, an estimated 1% of all circulating Ether (Ethereum’s coin) was locked into the Maker DAO.
Purchasing Maker can allow you to invest in a growing network of app developers operating on the Ethereum network. If you’re interested in learning how to buy Maker, read on to learn more about placing your first order to buy crypto.
Step 1: Open an Online Account.
The 1st step to buying Maker (or any type of cryptocurrency) is usually to open an account with a broker that supports Maker purchases. Cryptocurrency brokers operate in a very similar manner to stockbrokers. First, you’ll create an account through your broker of choice. Like opening a brokerage account, you’ll usually need to provide a bit of personal information to your broker before you can access the market.
Some common information you might need to provide may include:
- Your full legal name
- Your date of birth and your current address
- Your banking information or a credit card (to fund your account; options may vary by broker)
- A copy of your passport or driver’s license to verify your identity
If your broker offers leverage that you want access to, you might need to answer a few questions about your income.
After opening your account, you’ll place an order using your broker’s unique platform and system. Your broker will then fill your order on your behalf and according to your instructions.
The broker you choose will determine which trading platform you can use to place your orders and how much you’ll pay in fees. It’s worth it to take the time to compare a few brokers before you decide where you want to open an account. Here are a few of our favorite cryptocurrency brokers offering access to Maker.
Uniswap
If this isn’t your first time purchasing cryptocurrency, you might already have some of Ethereum’s token, Ether, on hand in your wallet. If this is the case, you can easily and affordably swap out your Ether for Maker using Uniswap.
Uniswap is a decentralized protocol instantly allowing you to convert Ether for 1 of up to 100 ERC-20 tokens, including Maker. It eliminates intermediaries by providing a constant pool of liquidity, which makes it exceptionally more affordable than converting Ether through other sites. Although you’ll already need to have some Ether in your wallet to buy Maker through Uniswap, established crypto investors will find the most efficient trading through Uniswap.
Coinbase
Widely regarded as the most popular cryptocurrency trading platform, Coinbase is an excellent option for beginners who are just getting started with cryptocurrency investing. Coinbase’s platform is based around simplifying the buying process — most users will be able to open their account in as little as a few minutes and get started with their order with as little as 3 clicks. After your account is open and funded, Coinbase makes it easy to track how your portfolio balances are changing over time and to set up recurring investments.
Coinbase also offers a unique “Coinbase Earn” feature, which allows you to earn small amounts of crypto by learning about the coins that Coinbase offers. Simply watch a few videos on the technology behind some of the coins supported by the broker and answer questions about what you learned. You’ll earn a little crypto each time you answer a question right — and it’s free to get started.
Step 2: Buy a Wallet.
After you open your account and purchase Maker, you’ll see your tokens held in your brokerage account wallet. While you can leave your tokens in this wallet, brokerage accounts are much more susceptible to hacks than private wallets. We recommend that you purchase or open a private wallet to keep your Maker safe.
There are 2 major types of cryptocurrency wallets:
- Hot storage: Hot storage requires a connection to the internet to access and display your tokens.
- Cold storage: Cold storage does not need to connect to the internet to access your tokens.
We recommend using a cold storage solution to store your tokens, as cold storage provides you with the highest possible level of security. Explore a few of our favorite cold storage wallets available on Amazon below.
Best for On-The-Go Management: Trezor Model T
No matter which types of cryptocurrency you’re investing in, you’ll find a one-stop-shop when you choose the Trezor Model T to provide your cold storage. The Model T supports Bitcoin, Ethereum, and hundreds of ERC-20 tokens (including Maker), providing you with a complete solution to storage for your investment.
The Trezor Model T can also be an excellent choice for investors who need to manage their coins on the road without connecting to a computer. The Model T features a unique LCD color touchscreen that makes checking your balances easier and more convenient.
Best for Linux Users: SecuX W10
If you’re a Linux user, you might have a hard time finding a wallet that’s fully compatible with your system. The SecuX W10’s hardware is compatible with Mac, Windows and Linux desktop computers, which can provide you with easier management solutions.
The SecuX W10 combines affordability with security and support for a wide range of tokens and coins. Like the Trezor Model T, the SecuX W10 features a bring display screen, which makes tracking and viewing your wallet offline easier and safer.
Step 3: Make Your Purchase.
After your trading account is open and funded and your wallet is set up, it’s time to place your Maker purchase order. Log into your brokerage account and take a look at the current market price of the Maker token. Use the current market rate to determine how many tokens you want to purchase.
After you know how many Maker tokens you want to add to your wallet, you’ll place an order through your broker. Most brokers offer multiple order types, and the type of order you choose will play a role in the amount of money that you’ll pay for each token. Let’s take a look at 2 common order types your broker will typically provide access to.
- Market order: A market order tells your broker that you want to buy a set number of Maker tokens at the current market rate. For example, if 1 Maker token is trading at $550 when you place your order, your broker will fill the order at $550 per token. Market orders fill your order as soon as possible but can cause you to pay more per token than the price you see on your brokerage platform because cryptocurrency markets can change frequently.
- Limit order: A limit order tells your broker that you want to buy a set number of Maker tokens but only at a specific price. Say you set a limit order to buy 1 Maker token at $480 or less. If the price of Maker rises above $450, your broker won’t fill your order. Limit orders allow you to control the price of the tokens you buy, but they might not be filled if market conditions don’t fit your specifications.
Choose your order type and place your order through your broker’s platform. If your broker is able to fill your order, you’ll see your tokens in your brokerage account.
Trade or Sell Your Cryptocurrency
After your broker fills your order, you’ll need to decide if you want to become an active Maker trader or if you want to hold onto your tokens and sell them at a later date. If you want to trade, you’ll capitalize on small, short-term price movements throughout the day or week by strategically converting your Maker into a stablecoin (like Tether) when prices rise. You’ll then sell them back when prices fall, keeping the difference as profit. Browse a list of our favorite trading platforms below.
If you want to become a long-term investor, we recommend storing your Maker tokens in a cold wallet. Cold wallets provide you with a private set of keys, which prevents hacks and makes theft less likely. Be sure to keep track of your cold storage wallet and your keys after you transfer them to your wallet.
Current Crypto Prices
Keeping track of cryptocurrency prices and how they’re changing can help you buy in at the most advantageous time. Browse pricing information for a few of the most popular cryptocurrencies below.
Adding Maker to your Portfolio
Maker can add a unique layer of diversification to your cryptocurrency portfolio. It’s important to remember that the cryptocurrency market is largely unregulated. Never invest more money than you can afford to lose in any cryptocurrency, and don’t view cryptocurrency as an alternative to traditional investments.