Maker is an Ethereum-based, decentralised platform and cryptocurrency (MKR) that’s starting to grab the attention of experienced investors and traders.
Where to buy Maker coin
Read on to find out more about Maker in 2020 or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is Maker?
In a nutshell, the Ethereum-based Maker platform is used to generate a stablecoin known as DAI which has its value pegged to the US dollar at a one-to-one ratio, so one DAI is always equal to one US dollar. The Maker cryptocurrency (MKR) is an Ethereum token that governs the Maker platform.
While DAI is a stablecoin and therefore cannot fluctuate in price, MKR is as potentially volatile as any other non-stable cryptocurrency.
How does Maker work?
If it’s ever going to be accepted as a viable alternative to fiat currency any crypto will have to overcome a tendency towards wild fluctuations in value. This is where MKR and DAI come in. When you can create a coin that’s stable, you can build acceptance and hopefully adoption. The real-world applications for a stable digital currency are endless and while the value of DAI is pegged to the dollar, it’s collaterally backed by Ethereum and powered by the Ethereum blockchain.
How to buy Maker online – step-by-step guide
Step 1. Get a suitable wallet
Finding a Maker-compatible wallet shouldn’t be too difficult as there are plenty out there to choose from. That said, it’s usually worth having a look around and checking a few out before you settle. Here are our favourite wallets for Maker:
- Ledger Nano X: If you’re looking for the security of a hardware wallet, try the Nano X from Ledger. It’s not the cheapest option for storing your MKR, but it’s one of the better options.
- MyEtherWallet: Another great wallet for all Ethereum-based coins including MKR thanks to an easy-to-use interface and multi-coin compatibility.
- Trust Wallet: If you’re after a dedicated mobile wallet, then check out Trust Wallet. The app couldn’t be easier to download and use. It’s available for Android and iOS so whichever phone you have, you should be up and running in no time.
Step 2. Find a Maker exchange
The good news when you’re searching for MKR is it’s readily available from most reputable exchanges, so you’ll have no trouble stocking up. Here are our top picks for sourcing MKR:
- Binance: Widely considered to be the best, most dependable place to buy altcoins, Binance is the world’s biggest crypto exchange. It offers a huge crypto marketplace and fees that compare favourably with its main competitors, plus a well-designed mobile app.
- Bittrex: Another great place for sourcing MKR is Bittrex. It doesn’t accept fiat currency, so make sure you have some Bitcoin before you visit.
Step 3. Withdraw your Maker
Once you’ve paid for your cryptocurrency, it’s a good idea to store your funds in your wallet as it’s a lot safer than leaving them on the exchange.
How to trade Maker – step-by-step guide
If you’re only interested in trading you won’t need to bother with a wallet as you’ll be speculating on the rise and fall of the value rather than buying currency to own.
Step 1. Find a broker
When you’re on the hunt for a decent broker, it’s a good idea to do your homework and check out all the various offers and features that are out there. All the brokers are different – some are geared towards professionals while others will better suit beginners. Two of the more popular brokers on the market right now are eToro and Plus500.
Step 2. Deposit money
Once you’ve settled on a broker, it’s time to lay down a deposit. When the funds are on your account you can start trading, but we recommend you don’t jump in too quickly. Most brokers allow you to practice using a demo account which is a great way of finding out how it all works.
Step 3. Decide how you’d like to trade
There are currently two main ways to trade on cryptocurrencies. These are spread betting and CFDs (contracts for difference). If you’re new to the game, you might see these as being fairly similar, and at first glance they are, but if you don’t know what those differences are, it’s certainly worth doing a bit more research.
Step 4. Start trading
When you’ve had a chance to check out your demo account, you’ll have seen that trading isn’t that difficult. All you need to do is take a position on whether the value of the currency you’re trading on will go up or down. If you think it will go up, you take a long (buy) position and if you think it will go down you take a short (sell) position.
You may also be able to add leveraged trading to your strategy. This enables you to put down a fraction of the trade’s worth, with the broker covering the rest. Be warned though, this isn’t a strategy for newbies as it’s fairly high risk and money can be won or lost very quickly. Savvy traders use stops to limit potential damage.