Stablecoins are cryptocurrencies that are recently attracting a lot of interest from the community. They are digital currencies that are not affected by market fluctuations, as they are tied to the value of a FIAT coin. To keep the value of a cryptocurrency stable, a complex balancing mechanism is used that rests on the delicate relationship between a governance token and the stablecoin. Maker (MKR), for example, is the token that keeps the value of Dai (DAI) constant: thanks to this peculiar cryptocurrency, therefore, the exchange rate between DAI and USD is constant and equal to 1:1 (1 DAI = $1.00). Maker was born in 2015 and is based on Ethereum blockchain, which allows it to create both dApps and very complex Smart Contracts, able to manage the value of the stablecoin DAI. So let’s see how to buy Maker (MKR), evaluating the pros and cons of this cryptocurrency and analyzing the advantages of relying on an online broker like eToro.
Why buy Maker: is it worthwhile?
Stablecoins greatly reduce the volatility of cryptocurrencies and facilitate buying and selling operations, which is why governance tokens are quickly gaining acceptance among investors. In fact, the MKR token followed a strongly bullish trend in 2021, due in part to the fact that decentralized finance-based projects are proving to be an excellent alternative to traditional systems.
Maker (MKR) greatly improves the trader’s experience by facilitating the creation and use of Smart Contracts and optimizing blockchain scalability. Its network is essential to keep the value of the DAI token stable and, since it can offer a reliable assessment about the reliability of creditors, it makes speculative investments more efficient and secure.
Where to buy Maker
In order to buy Maker (MKR) it is essential to rely on intermediaries authorized to operate in the field of buying and selling shares and cryptocurrencies online. According to one’s needs, one can choose between cryptocurrency exchanges (which foresee costs and commissions for each executed operation) and online brokers (without commissions and mainly oriented to the purchase and sale of CFDs or investments on the free market).
Among the different brokers currently present on the net, eToro is considered the safest and most reliable. In fact, it has CONSOB, ASIC and CySEC certifications (the major supervisory body in charge of monitoring financial intermediaries). The eToro platform, thanks to the presence of multiple features and services that optimize the user experience, is the most appreciated and used broker by both experienced investors and those who approach this sector for the first time. Using the Demo Account function it is possible to practice without running the risk of losing capital.
How to register on eToro
To register on eToro you need to access the official website and click on the Sign Up Now item on the green tab at the top right. This opens a screen with a form to fill out. Here you must enter only three data: the nickname chosen, an effective password and the email address of reference for the registration. It is necessary to tick the boxes concerning the acceptance of the modalities of use and the treatment of personal data. By clicking on the blue tab Create Account an email will be sent to confirm the registration.
How it Works and How to Deposit Money in the Account
Once the account on eToro is created, it will be possible to access it and choose between two different types of use of the online broker. By choosing the Demo Account mode you can simulate a trading experience identical to the real one, but you use virtual money to execute transactions and, therefore, you do not risk losing your capital. The Demo Account is a great tool to allow even beginners to become familiar with investment strategies, putting them safe from any kind of financial risk.
If you want to buy cryptocurrencies with real money, instead, you need to perform an account validation procedure. By accessing your profile you have to complete it with your sensitive data (first name, last name, tax code, phone number) and send both a copy of a valid ID (such as ID card or passport) and a selfie of yourself. The moment the eToro team has validated your account (the procedure is completed within 48 hours), you can start buying cryptocurrencies on the broker.
To make a deposit you need to go to the Fund your account section, enter the amount you want to send, select a payment method and confirm your details. Among the various payment methods accepted by the online broker we find: bank transfer, credit or debit card (even prepaid), transfer from third party wallet (such as PayPal or Neteller). Amounts deposited by bank transfer are available within 3 to 5 business days, while reloads by credit/debit cards and third party wallets are instant.
How to buy MKR on eToro
To buy MKR on eToro the first operation to do is to log into your account. In the main interface of the platform you have to search for the cryptocurrency in the appropriate search bar (located in the middle, at the top of the page) and select MKR. Clicking on Buy you will be able to enter the amount of cryptocurrency you want to buy and set the stop loss and take profit values. By confirming the data entered, the tokens will be immediately transferred to the Wallet, accessing which will be possible to follow the trend in real time.
Costs and Commissions
The main feature of online brokers is the absence of costs and commissions. Creating an account with eToro is completely free, as well as making transactions or using the Demo Account features. To make withdrawals and deposits, however, there are some conversion fees depending on the type of currency used. To withdraw cryptocurrencies by converting them into FIAT currencies (other than USD), for example, there is a fee to be calculated in relation to the type of cryptocurrency and the amount to be withdrawn. Overnight and weekend commissions, on the other hand, are fees charged for keeping a CFD position open overnight or over the weekend. Any fees paid can be viewed within your Portfolio.
Stablecoins are quickly gaining acceptance and DAI occupies one of the top three positions in the market by level of capitalization. Maker (MKR) is a token indispensable for the good functioning of the DAI ecosystem, therefore it has an excellent competitive capacity both towards stable and dated cryptocurrencies and towards younger and latest generation ones. The increase of exchanges operated through DeFi, moreover, seem to assure this token a rather promising future.
To buy cryptocurrencies safely, choosing a reliable broker is crucial. As we have seen, eToro meets all the major security requirements of the market and offers an intuitive interface that is very easy to use. It is the first platform to have implemented a system that allows its users to get in touch with each other and discuss various issues. The absence of costs and commissions for executing transactions also makes this broker the most suitable and convenient choice for both experienced and novice users.