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How to buy Maker coin online
The Maker coin is part of the MakerDAO platform, an alternative financial system that’s built around cryptocurrency. This beginner’s guide takes you through everything you need to know about Maker, the role it plays in the system, and where you can get it right now.
Compare where to buy Maker, and open an account
You can get Maker right away from one of the platforms below. These brokers are ideal for beginners who are just getting started with cryptocurrency, so you can set up an account in just a few minutes. Alternatively, scroll down to keep reading about Maker.
How to buy Maker online – a step-by-step guide
Step 1. Find an exchange
A cryptocurrency exchange is normally the best place to buy Maker. Exchanges are platforms that bring together buyers and sellers in an online marketplace, and they often offer the best price. Two of the top exchanges that offer a market for Maker are:
- Binance: Binance is the largest cryptocurrency exchange. It has the most trading volume and a wide range of coins to choose from. Sign up with Binance today >
- KuCoin: KuCoin is a beginner-friendly exchange platform. It’s ideal for anyone just starting out and offers a large number of different cryptocurrencies for you to buy and sell. Join KuCoin now >
Step 2. Sign up and fund your account
Once you’ve chosen an exchange, you need to set up an account. That means supplying some personal information, like your contact details and a form of ID, before you can use the platform.
You can add money to the account via a bank transfer or credit/debit card payment in most cases. There can be a small charge for doing so, which is usually in the region of 1-5%, depending on the platform. Some exchanges don’t charge at all for deposits, but may charge for withdrawals instead.
Step 3. Purchase
Armed with a funded account, search for your chosen coin using its unique ticker symbol. For the Maker coin, it’s MKR, and when you search for it the results will show a list of different pairs. These pairs represent the price of Maker in different denominations, such as MKR/BTC, which shows how much Bitcoin it costs to buy a single Maker coin.
Choose the pair that corresponds with how you want to pay for it and then enter the rest of the details of your purchase. That means deciding how many coins you want to own, or how much money you want to spend. Execute the trade, and your new coins will be visible in the wallet section of your account.
Step 4. (Optional) Get a suitable wallet
A wallet is an app or online portal that you can use to manage your coins. If you use online banking, then a wallet will be quite familiar; it stores your money behind a unique username and password, and the interface lets you see what you own and to transfer it to someone else if you want.
Most wallets are available free and online, although some maximum-security options actually store the coins on a physical device that you might have to pay a one-off fee for. You then connect to the device via your computer or mobile phone. Here are a couple of the top wallets around:
- CoolWallet: CoolWallet is a hybrid wallet, which stores your coins on a physical device but lets you manage them through an app on your phone. Sign up for CoolWallet today >
- Ledger Nano S: Ledger Nano S provides a hardware wallet, the most secure version of a wallet. It comes in the form of a USB-like device, and you can plug it into your computer to access and manage your money. Get the Ledger Nano S now >
How to trade Maker – a step-by-step guide
Step 1. Find a broker
To trade a cryptocurrency successfully you need to use an online broker, and preferably one that charges low trading fees. A fast-paced trading strategy means making lots of buy and sell decisions, so low fees are important otherwise you risk spending a lot of your capital on the commission on every trade.
Online brokers are almost always great platforms for beginners, because they’re designed to cater for people who are new to the market. The broker below is an excellent, low-cost option to get started with that lets you trade Maker:
- eToro: eToro is one of the most popular online brokerages in the world. It lets you trade a wide range of asset, including stocks, forex, and indices, along with cryptocurrency. Sign up for eToro today >
Step 2. Create an account and deposit money
Like with an exchange, you can only use a broker once you’ve set up an account and put some money into it. It’s easy to create the account and you can have it verified in just a few minutes. There are more payment methods available through a broker too; along with a bank transfer or card payment you can often use PayPal or things like Google and Apple Pay as well.
Step 3. Learn how to perform technical analysis
To be able to trade well you need to learn how to use technical analysis. This form of research is based on studying price charts to pick out trends and patterns in how the price has changed in the past. Then you can use that information to predict how it might move in the future.
All good traders use some form of technical analysis, and you can learn about the different options available in our guide to short term trading. It’s worth spending some time learning about how to perform this kind of analysis yourself.
Step 4. Decide whether to go long or short
A feature of trading is that you have the option to buy or sell a coin, depending on how you think it’s going to perform. Use your analysis to predict which way a price is likely to move, and then you can take either a buy (long) or sell (short) position accordingly.
Step 5. Make the trade
The final step is to open your first trade. Search for the Maker coin by typing in its ticker symbol, MKR, and then enter the details of the transaction. You need to choose whether to buy or sell and how much money you want to put into the trade. Then you can execute it and the new position will show up in your account.
Should I invest in Maker?
That depends on how you feel about the decentralised finance system it’s part of. Maker is part of MakerDAO, which is a platform that lets people access financial services in cryptocurrency that are normally only available through traditional banks.
Owning the Maker coin itself is a little like owning a piece of stock in the system. You have the right to vote on issues that affect the platform’s future, but it doesn’t have too many uses in its own right. The key part of the system is actually a different cryptocurrency, a stablecoin known as DAI.
Maker’s role is to support and protect DAI’s value, which is meant to be the same as the US Dollar. That is, one DAI token equals $1. That means that Maker’s performance can be affected by a wide range of factors outside of its control, particularly confidence in the DAI coin. You should only invest if you’re comfortable with that, and fully understand the role that Maker plays.
It’s always a good idea to take time before you make any investment, and this is particularly true of cryptocurrency. Below is a summary of the most important pros and cons of the Maker coin to help you decide whether it’s for you.
- Maker is part of a successful, alternative financial system already
- You can use Maker as a way to invest in the future of DAI, one of the most popular stablecoins on the market
- Maker owners can help decide on important changes to the system, such as the savings rate and how much risk to take on
Finally, here are three more questions for you to consider before you decide to invest in Maker.
1. Is now a good time to buy Maker?
Think about the state of the overall cryptocurrency market and whether you want to buy to hold or trade Maker coin quickly. Generally, if most coin prices are stable and you think Maker’s price is going to appreciate in value over time, it’s better to make a purchase sooner rather than later.
For those with more of a trading focus, the market and future of the coin are less important. Instead, your decision should be based around the results of your technical analysis. Wait until your indicators tell you there’s an opportunity before you make a move. You can also use our own team of analysts’ work to help you.
2. What problem does Maker solve, and what are its investment prospects?
Maker is part of a project that allows anyone to access financial services. Its existence solves the problem of volatility in another cryptocurrency, DAI, which is then able to maintain a $1 value at all times. Without Maker, this alternative financial system would not be stable enough to offer things like loans.
The MakerDAO system has been one of the most successful decentralised finance projects up to this point. It got into the game early – the idea first came about in 2014, and the platform launched in 2017 – so it had a step on the competition. That helped it establish itself before many newer DeFi projects had even launched.
Moving forward, the question is whether it can continue to stay ahead of the competition. There are now a huge number of DeFi projects with their own cryptocurrencies, offering the ability to lend, borrow, and save on the blockchain. While Maker is in a good place now, you should keep track on the latest news to see whether it’s able to maintain its position as a market leader.
MakerDAO founder thinks the project can help impact climate change
Anti-crypto US senator shows concerning lack of knowledge of crypto
MakerDAO (MKR) hits a new milestone — DAI’s total supply increases by 46 times
3. Do you want to hold Maker for the long term?
There are times when this is the best strategy, and others where a short term trading approach is the best way to make money. Below are some final things to think about, whichever method you choose to use.
Considerations for a long term investment strategy
If you think Maker is going to increase in value over time, then a long term strategy is best. Find an exchange to get your coins and then use a wallet to store them securely.
Considerations for a short term trading strategy
For traders, the most important part of being successful is finding a technical analysis strategy that works for you. Then pick a broker that charges low trading fees to buy and sell your coins.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >