Frequently asked questions
The Maker platform is a system of smart contracts that are used for loans. Users lock in their collateral (often ETH) in exchange for a currency called Dai. The protocol has a native ERC-20 token, called Maker (though when distinguishing between the coin and the protocol, it’s useful to use the ticker name, instead.)
Digital assets are often labelled using three-letter abbreviations for the sake of clarity. In the case of Maker, the ticker abbreviation is MKR.
Like most crypto, the value of MKR is heavily tied to that of Bitcoin. But the strength of the coin is dependent on governance decisions taken by those who hold it.
The easiest way to get hold of the cryptocurrency is buying it on a cryptocurrency exchange.
A crypto exchange (or cryptocurrency exchange) is a marketplace where buyers and sellers trade cryptocurrencies. Just like regular stock exchanges, a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.
Is now a good time to buy Maker? Frankly, we don’t know.
But there are several strategies when it comes to crypto investing. One approach is to buy in when price slips. In the crypto community this strategy is known as "buying the dip" (BTD).
Another strategy is dollar-cost averaging: investing a certain amount of money on a set schedule, say $100 every Monday morning. Dollar-cost averaging seeks to average out the lows and highs over time.
No matter which strategy you choose, Cryptoradar’s price alerts help you to not miss a dip, and adhere to your investment schedule.
There are risks associated with any investment. Crypto markets are particularly volatile, with large upswings and downswings. Only invest as much as you can afford to lose.
When it comes to choosing a crypto exchange, there are also a couple of thinks to be wary of.
Before you can start trading, a crypto exchange will ask you to verify your identity. This is necessary because of anti-money-laundering laws. The verification process and time can differ significantly and take anywhere from minutes to weeks.
All crypto exchanges charge a fee or a spread to finance their operations. Fees can differ significantly among exchanges, so make sure to get a good deal.
Additionally, make sure that your preferred crypto exchange supports the payment methods of your choice, but be aware of any additional payment fees that may apply.
Last but not least, if you’re new to crypto, make sure that your chosen platform is easy to use and has good customer support. This helps you avoid making costly mistakes.
You can buy Maker using a direct bank transfer to your preferred exchange. Bear in mind, some exchanges will insist on specific methods of payment, while others provide a greater breadth of options. Be sure to check the options using Cryptoradar.
Getting started with crypto can be hard. Our detailed price comparisons and cryptocurrency guides have you covered.