Dai Token ($DAI) is a confusing cryptocurrency to buy. There’s no good guide out there explaining everything you need to know. That’s why we created this beginner’s guide. In this article, I’m going to walk you through how to buy Dai Token so that you can start trading/investing in it.
What is Dai Token ($DAI)?
DAI is an Ethereum-based stablecoin (stable-price cryptocurrency) whose issuance and development are managed by the Maker Protocol and the MakerDAO decentralized autonomous organization.
The price of DAI is soft-pegged to the US dollar and is collateralized by a mix of other cryptocurrencies that are deposited into smart-contract vaults every time a new DAI is minted.
How to buy Dai Token ($DAI)?
No matter what people say, it’s easy to buy Dai Token with a credit card. Your first step will always be to buy BTC/ETH/USDT/BNB with your credit card. They can then be converted to Dai Token. Transfer BTC/ETH/USDT/BNB to an exchange that supports Dai Token. Finally, exchange it for Dai Token. Please follow our step-by-step guide below on how to buy Dai Token ($DAI).
The well-known website Coinbase has already enabled trading for Bitcoin Cash, Ether, and Litecoin, but what about what’s commonly referred to as altcoins? Here’s how to buy Dai Token ($DAI)!
Step 1: Register on Fiat-to-Crypto Exchange
The first thing you will need to do is register with one of the many exchanges that allow fiat-to-crypto purchases. You can buy cryptocurrency on exchanges or peer-to-peer. On exchanges you can use fiat money to buy cryptocurrency, for example, you can use USD to buy Ethereum (ETH), Bitcoin (BTC), and Litecoin (LTC).
In this case, we need to buy Ethereum (ETH) from Coinbase.
Coinbase is also one of the largest crypto exchanges that accept fiat deposits. Use the link below to register at Coinbase and you will receive a free amount of $10 worth of BTC after buying $100 worth of cryptos.
This can be done by going to the website and clicking “Sign Up.” You will be required to enter your name, email address, create a password and verify your email address.
Verify Coinbase Account
After your account has been created, you will be required to go through the KYC (know your customer) process. The KYC process also requires you to provide proof of identity and proof of residency.
During the KYC process, you may be required to add a picture of yourself holding up your government-issued ID and a picture of yourself holding up your driver’s license or passport. Once this is complete, you should have successfully registered and can now buy cryptocurrency!
Step 2: Buy ETH with fiat money
Select ETH and enter how much money you want to spend/how many coins you want to buy in the windows at the bottom of the page. Once this is done, click on the Buy button. Now you will have to confirm your purchase. Do this by pressing the Confirm purchase button. You now own some ETH. However, don’t close Coinbase just yet – we’ll use it later!
Note: If you use a card on Coinbase, your fees will be higher, but your purchases will be instant. It’s cheaper to use bank transfers, but it’s slow – it can take up to a week to receive your coins. When your payment details are verified, click on the ‘buy/sell’ button in the top menu.
Step 3: Transfer ETH to MetaMask
You can use ETH to buy most coins and tokens in the market. The quickest way to buy Dai Token is to transfer your ETH to Metamask Wallet (or the exchanges listed below for US traders) and swap your ETH for DAI on UniSwap.
- Head over to your Coinbase dashboard and click on the “Accounts” tab.
- Under the category “Deposit,” you will see a list of all the digital assets that Coinbase makes available for trading. If you want to transfer Ethereum from Coinbase to MetaMask, click on the “Send” button next to your Ethereum balance.
- If you want to send all of your Ether, click on “Max” next to “Amount” Otherwise, you can manually input an amount by clicking on this field and typing in a number.
- In the “Recipient Address” field, paste your MetaMask wallet address (or manually type it in). This is where your Ether will be sent after you complete these steps.
- Next, click on the blue “Continue” button at the bottom right corner of the page. At this point, Coinbase will ask you to confirm the transaction by entering your password into a pop-up.
Now you will need to find an exchange that allows you to deposit ETH and trade it for Dai Token. As DAI Coin is currently listed on UniSwap we will guide you through how to convert your ETH on the platform.
Step 4: Connect MetaMask with UniSwap
Connecting to UniSwap using MetaMask is easy, once you have your own wallet set up.
Once you have installed MetaMask on your browser and created a wallet, we can begin connecting it to the Uniswap exchange.
Step 1: Go to the Uniswap website to start the process.
Step 2: Click on Connect Wallet in the top right corner of the page.
Step 3: You will then see a pop-up asking you which wallet you want to use. Select MetaMask from the list of options displayed on this page.
Step 4: A pop-up will appear from MetaMask asking you if you would like to allow Uniswap to connect with your wallet. Click connect.
Step 5: Swap ETH for DAI
I will show you step by step on how to swap ETH for DAI:
- Click the “Select a token” dropdown.
- Search for the Dai Token token, or you can copy-paste the token contract code from a website like Coin Gecko or Coin Market Cap.
- Now, we’ll go to CoinMarketCap. In the search bar at the top right of the website, search for DAI.
- Select DAI in the drop-down.
- Under DAI you will see a “Contract” To copy the contract code press the paper icon.
- Now go back to Uniswap and paste the contract code into the “TO” field.
- You’ll see “DAI” appears. Click the import button to save DAI so you do not have to copy-paste the Dai Token contract code again.
- Read the Uniswap warning and then click “I understand” and then the import button to continue.
- Next, you have to select the amount of ETH you want to convert to DAI.
- Press the Swap button, and lastly the Confirm button to complete the swap.
Now you can see your DAI Coin in your MetaMask Wallet. Congratulations! You have finally bought Dai Token ($DAI)!
Frequently Asked Questions
Can I buy Dai Token on Coinbase?
No, Not all cryptocurrencies are as easy to get as others. Dai Token is one of them. It’s not listed on Coinbase’s app or the Coinbase Wallet.
Where can I buy Dai Token crypto?
You can buy Dai Token with any decentralized crypto exchange which works on Ethereum Blockchain technology.
What exchanges sell Dai Token?
You can sell Dai Token with any decentralized crypto exchange which is built on Ethereum Blockchain technology.
Is Dai Token crypto?
No, Dai Token is a digital token built on the Ethereum Network.
How do I buy Dai Token with PayPal?
No, you cannot buy Dai Token with PayPal directly. However, you can use Binance to exchange your fiat currency in PayPal for $DAI.
Can I buy Dai Token through Cash?
No, you cannot buy Dai Token with your cash directly. However, you can use Binance to exchange your cash for $DAI.
Can I mine Dai Token instead of buying?
No, you cannot mine Dai Token as it has a different network structure than Bitcoin. You can only buy Dai Token from an exchange.