DAI is a decentralized stablecoin built on Ethereum, designed to maintain a 1:1 peg with the U.S. dollar through a system of smart contracts and overcollateralized assets, primarily Ethereum itself. Created by MakerDAO, DAI allows users to generate it by locking up collateral in vaults, offering a stable alternative to volatile cryptocurrencies. It’s widely used in DeFi for trading, lending, and payments, providing a reliable store of value without relying on centralized banks or custodians. DAI’s decentralized nature and algorithmic stability make it a cornerstone of the Ethereum-based financial ecosystem.
1. Create an Account
Visit the Netcoins website and click on the sign-up button. Or download the Netcoins app from the app store for mobile. Enter your email address, create a strong password, and agree to the terms and conditions. You will receive a confirmation email, click on the link to verify your email address.
2. Fund It
Choose your preferred funding method: bank wire transfer, interac e transfer, crypto deposit, or cash deposit. Follow the prompts to transfer funds into your Netcoins account. The process is quick and incurs no fees.
3. Start Trading
Why Buy DAI?
DAI, crafted by MakerDAO, offers a compelling case for those drawn to stability within the unpredictable world of cryptocurrencies. As a decentralized stablecoin pegged to the U.S. dollar via overcollateralized assets and smart contracts, it provides a steady anchor for DeFi activities like trading, lending, or earning yield, all while staying free from centralized control. Its appeal lies in delivering a reliable, trustless alternative to volatile assets and traditional stablecoins, potentially gaining traction as DeFi expands and users seek dependable tools amid skepticism of conventional finance.
Does DAI Have A Supply Cap?
DAI does not have a fixed supply cap. Unlike some cryptocurrencies with a predetermined maximum supply, DAI’s total supply is dynamic and determined by user demand and the amount of collateral locked in MakerDAO vaults. As users deposit assets like ETH or other supported tokens to generate DAI, the supply increases; when they repay DAI to unlock their collateral, the supply decreases through burning. This flexible mechanism allows DAI to scale with usage while maintaining its $1 peg, governed by the Maker protocol and its community.
What makes DAI Unique?
DAI stands out as a decentralized stablecoin that maintains its $1 peg without relying on centralized custodians or fiat reserves, setting it apart from stablecoins like USDT or USDC. Built by MakerDAO on Ethereum, it achieves stability through an algorithmic system of overcollateralized vaults, where users lock assets like ETH to mint DAI, blending autonomy with resilience. This trustless design, coupled with its deep integration into DeFi for lending, trading, and governance via the MKR token, makes DAI a uniquely community-driven and blockchain-native solution in the stablecoin space.
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FAQs
Why is KYC (Verification) required?
Netcoins USA Inc. is a licensed money service business under FinCEN, we adhere to the strict guidelines set by them for Money Transmitter Businesses. We are required to have a Know-Your-Customer (KYC) process and compliance program in place. KYC is a process that allows us to verify the identity of our customers, as per American regulations.
What do I need to provide for your verification process?
You will have to provide your email address, phone number and personal information including your first name, last name, address, date of birth and a piece of identification (like a driver’s license). Most users are verified at this point through our automated process. If you don’t pass the automated KYC process, you will have to go through an additional document verification stage. This is important and required as we are a regulated money service business in the US.
How can I fund my account?
Your Netcoins account can be funded with a crypto deposit, regular ACH, ACH pre-funding or a bank wire transfer. Once you have funds in your Netcoins account, you’ll find that it’s super easy to buy DAI in the US.