How to Buy Decred - Where to Purchase DCR?
Having launched five years ago, Decred is a decentralised cryptocurrency that aims to offer solutions to the scalability problem that plagues projects such as Bitcoin. The protocol is built to prevent rifts within the community that could lead to hard forks, as witnessed with Bitcoin, Ethereum, and a few other projects. DCR is the native token of the project that facilitates open governance, community interaction, and sustainable funding policies.
This guide will focus on how to buy Decred to ensure you don't miss out on the opportunities the token offers.
Buy Decred in just a few minutes
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Why Trade rather than Buy Decred for Cheap and Fast Returns?
You Don’t Need a Wallet:
You trade on the price movement of the coin without having to buy and store it.
You Can Use Standard Payment Methods:
All regulated brokers accept popular methods of payment such as credit/debit card and bank transfers.
Trades Are Fast and Withdrawals Are Easy:
Trades are executed within seconds and withdrawals will reflect instantly in your account.
What is the Easiest Way and Best Way to Buy? Compare the Top Decred Brokers
Cryptocurrency brokers represent the easiest way to get access to DCR since they have low entry barriers and are accessible from any corner of the globe. All that is required is that you be of legal age to interact with various financial instruments on offer and fund your account with at least the minimum deposit. This can range from $100 to $250.
5 Things to Consider if you Want to Buy Decred
Below are five things you need to pay attention to before starting your journey of buying DCR on any platform.
1. Carefully Choose Your Preferred Secure Payment Method
It's essential to check the kind of payment modes supported on various platforms you choose to buy DCR. The platform you choose to settle for should support a convenient mode for you to fund your account and make the purchase. Most will support bank transfers, credit/debit cards, third-party payment processors and crypto.
2. Will you need to set up your own wallet?
This is another thing you should consider before you settle on a single platform to buy DCR. If you want to deal with the actual asset on exchanges, you will have to acquire a safe and secure private wallet to store your tokens from thieves. However, if you will be using a broker to interact with the Decred, there will be no need for a cryptocurrency wallet since you will not be dealing with the actual asset but financial instruments attached to the token.
3. Safety and security
The safety and security of the platform you choose to use to buy Decred is another crucial factor you need to pay attention to. The last thing you want is to join a scam platform that flees with your money or one with weak security measures that can risk your investment. Top brokers and cryptocurrency exchanges will have robust security measures in place to protect their platforms from getting breached by hackers. They will use cryptography and encryption. Also, regulators will require they hold a safety certificate to show investor funds are protected. Most centralised exchanges will store most user funds in cold wallets to minimise the damage if a platform is breached. Additionally, they will offer users access to two-factor authentication (2FA), SMS, and email verification to add an extra layer of security for their accounts. Also, another trend witnessed lately has been exchanges setting up an insurance fund that guarantees user funds are reimbursed in case of a hack.
4. Comparing Costs
You will come across various costs on platforms you choose to buy DCR. These costs will come in the form of fees and it's up to you to choose a platform that offers the least fees without compromising the quality of services you receive. Fees can accumulate for traders and impact your bottom line, so it's essential to pay attention to various costs you are likely to encounter.
5. Can you understand and navigate the platform?
It's essential you can navigate the platform you select to make your purchase. Top platforms are designed with users in mind and will have simplistic user interfaces where everything is outlined neatly, making it easy even for beginners to use the platform. They will also have tutorials on interacting with various functions on the platform and responsive customer support ready to help out whenever you get stuck. Navigating a platform is crucial since the last thing you want is to lose your funds just because you don't understand how things work.
Ultimate Beginner's Guide to Trading Decred
What is a Decred Broker?
A broker is an intermediary that helps place trades for you. As mentioned earlier, they offer the easiest route to access the DCR market. They allow users to speculate on the asset's price and profit whether the price goes up or down. Brokers don't offer access to the actual asset but derivative products attached to the main asset. This means one doesn't need a wallet if they opt to use a broker to trade Decred. Also, they offer access to assets in various markets such as forex, stocks, commodities, indices and crypto.
What is a Decred CFD?
This is a derivative product that serves as a contract between the broker and the trader. It allows the trader to exploit the volatile price of DCR with potentially higher gains since you get to trade with leverage which increases your exposure within a given market. To trade DCR CFDs profitably, you will have to learn how to conduct technical and fundamental analysis.
What is the Benefit of Decred Regulation?
Regulation plays a crucial role in bringing about order within a given market. Traditional markets are considered safe because there are concrete frameworks developed to govern them over the many years they have existed. Cryptocurrencies don't enjoy the luxury of having been around for that long for regulators to implement similar rules for the market. This has seen the prevalence of bad actors looking to exploit unsuspecting investors. Over the decade crypto has been around, many people have lost billions of dollars to scam projects and platforms getting hacked. This has forced regulators to step up and develop some rules to govern the new market without stifling innovation. One area they have helped improve is the quality of platforms that offer access to tokens, such as Decred. They must hold licenses to operate and show they have the correct security measures to protect user funds. Also, the need to do background checks on the projects they opt to list to ensure they don't list scam projects that can swindle investors. This has helped make the market a bit safe for investors.
What is the Best Payment Method for Buying Decred?
The section below will cover the many payment modes you will likely encounter when you join various platforms to buy DCR.
Buying Decred with Debit/Credit Card: Credit and debit cards represent one of the most common ways to make online transactions today, whether it be paying for bills or for shopping. This is one of the modes you will come across on most platforms to fund your account and buy Decreed. If you find this option and it works, you can opt to use it. However, this mode might not work in some countries, depending on the crypto regulations that exist.
Buying Decred with Crypto: You can buy DCR using other cryptocurrencies. Most platforms allow easy conversion from one token to another. Bitcoin and Ethereum are the two most common crypto pairs available on most platforms.
Buying Decred Peer-to-Peer: Peer-to-Peer (P2P) platforms offer an alternative way to buy cryptocurrencies, especially in regions where there might be restrictions on accessing these digital assets. Most P2P platforms are decentralised, making it possible for them to operate anywhere since they aren't answerable to anyone. Also, they offer a variety of payment modes, including the use of local payment options and local currencies tailored for specific regions.
Buying Decred Using Third-Party Payment Options: Another popular option you will find on most platforms is third-party payment processors such as PayPal and Skrill. The fees charged will vary depending on the mode, but if you find this option and find it convenient, feel free to use it.
The Verification Process for Trading Decred
To trade Decred on centralised exchanges and various brokers, you will have to verify your identity since these platforms have to abide by certain regulations. So, they have KYC regulations in place where you need to submit personal details. This helps keep criminals away from these platforms. Once you sign up, you will have to verify your account by uploading a national ID/passport photo. The platform may ask for a selfie or request a video call to confirm if the details submitted belong to you. Also, you will have to upload a photo of a utility bill, such as a bank statement or water bill to prove your residence.
Decred: Long Vs. Short Term Investment
There are two ways to go about investing in Decred; short-term and long-term. Short-term investing will require more from you since it involves using active trading strategies to exploit the volatile price of DCR over short periods. Here you will use strategies such as day trading, scalping, swing, and trend trading. Short-term investing can be highly lucrative if you know what you are doing. This means educating yourself on how to trade to conduct technical and fundamental analysis while also knowing how to set stop loss and take profit.
On the other hand, long-term trading doesn't require too much technical know how to get started. This makes it ideal for beginners and people who would like to venture into the crypto market without learning how to trade because they find the exercise complicated or lack time to do it. All you need to do is sign up on an exchange and buy DCR, then transfer your coins to a private wallet where you hold them for an extended period, sometimes even years.
Why Buy Decred rather than Trade?
As you have seen in the section above, buying and holding DCR is less stressful since you don't have to keep tabs on the many ongoings within the market. Also, the volatility of the price will not bother you as it does to an active trader. Sometimes short-term investors can miss out on the long-term gains because of moving in and out of positions. And most importantly, you don't need to know much to buy and hold onto DCR tokens.
What Fees are Involved in Buying Decred?
At the start of this guide, there was a mention of costs you are likely to encounter when interacting with various payment trading platforms. These costs exist in the form of fees. Let's take a look at the most common ones you will come across.
Transaction Fees: This is the fee a platform will charge to facilitate the buying and selling of DCR. It comprises network fees that can vary depending on how congested the Decred network is at times. Brokers will not charge such fees but will settle to take spreads when you place orders. However, they will charge commissions for a given number of trades and an inactivity fee if you go for long without using your account.
Deposit Fees: Brokers and exchanges will not charge any deposit fees when funding your account; however, the service provider you opt to use might take some fees. Different modes will charge varying fees. Also, the time it takes for the funds to get to your account can vary. This means you need to choose your payment mode wisely.
Withdrawal Fees: There are fees charged when you try to take funds out of your account or transfer coins from your exchange wallet. They will vary on different platforms, and the time it takes to receive funds, let's say, in your bank account, will depend on the payment option you opt to use.
Safely Storing Your Decred
Now that you understand how to buy DCR safely and what factors you need to pay attention to, let's look at some of the available options for storing your tokens. Crypto wallets help store the private keys that give you access to your tokens on the Decred blockchain.
Web Wallet: These exist online in the form of browser extensions and exchange-provided wallets. When you sign up on an exchange and buy Decred, the tokens will appear in a wallet that the platform provides to you. The problem with this type of wallet is that the exchange holds the private keys to the wallet, and if it's to get breached or go under, you will lose your investment. The problem is that they are always online, and this means they can be easily breached.
Mobile Wallet: These are applications you download and install on your smartphone. They help safeguard your tokens and offer access to them while you are on the move. They offer better security than web wallets and are convenient for traders and those who want to access their tokens regularly. The only problem with this type of wallet is that it can get breached if your device is infected by malware or viruses. Also, if someone gets ahold of the device and happens to have your login details, you will lose your tokens. Popular examples include Atomic, Guarda, Trust Wallet and Evercoin.
Desktop Wallet: This is software you download and install on your PC. It helps secure your private keys, and it's convenient for traders and individuals conducting regular transactions. These wallets offer better security than web wallets since they are not online most of the time. Also, they can hold many tokens helping you manage your assets on a single interface. Popular examples include Decrediton and Exodus.
Hardware Wallet: This physical device resembles a USB flash drive that hosts applications that allow users to store private keys to various tokens safely. They offer the best security since they are mostly offline, providing what is known as cold storage. Also, these devices are resistant to malware and viruses. They are ideal for long-term Decred investors and individuals that hold large amounts of DCR. Popular examples include Trezor and Ledger.
Wallet Combinations: As an investor, you can opt to combine a variety of wallets for better convenience. If you are actively trading, you can opt to use a mobile or desktop wallet and also hold a hardware wallet to store coins that you have saved up for the long term. Additionally, you can hold a web wallet that offers access to DEXs.
What Other Coins Can I Trade or Use to Buy Decred?
Being a top token, DCR is supported on many top exchanges. This makes it easy to use other coins to trade for the token. The most popular options you will find on exchanges will be stablecoins such as USDT and BUSD. Also, you will find various pairings with other top coins, such as BTC and ETH. Another option is the use of native exchange tokens.
What's the Smallest and Largest Amount of Decred I Can Buy?
Decred can be divided up to eight decimal places which make it possible to buy tokens worth cents. However, due to various fees involved when buying, most exchanges will require you to buy coins worth at least $10. As for the maximum amount, there isn't an upper limit on most exchanges but some jurisdictions may place a limit on the total amount of investment in a year.
Can I Buy Decred Anonymously with no ID? Is it Safe and Legal to Buy Decred?
It's possible to buy DCR anonymously using decentralised platforms and P2P platforms, as mentioned earlier. Most of these platforms don't have KYC in place, which is excellent for privacy lovers. However, there are risks of using such a platform since many scammers are hiding behind pseudonyms. As a beginner, you are better off on a centralised exchange that protects your investment.
Will Buying Decred Make Me Money?
You will need to invest in a trading course to make the most of short-term investing, while an investing course will help with long-term investment. Since its launch, Decred has seen an ROI of over 15000%, which means those that got in early have already made massive profits. This trend should continue as crypto assets see increased adoption but check the price history of the token to identify trends. If you wish to learn more about the price history of the token, please visit our Decred Price Page.
How to Spend your Decred
There are many ways to spend your DCR tokens, including spending them at merchant points where they may be accepted to pay for goods and services. Also, you can visit freelance markets that support crypto and purchase various services using the tokens. And most importantly, you can convert your tokens into fiat and spend them as you like.
How to Sell your Decred
The selling process is simple and buying. The platforms that offer access to this token are the same ones that will allow you to sell your tokens.
If you possess a Decred CFD, then the process is simple and all you need to do is close the trade since there are no wallets or actual transfer of tokens involved.
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Frequently Asked Questions
No. This is a decentralised cryptocurrency that is controlled by its community in a fair manner.
Decred is a project that aims to facilitate open governance, community interaction and create sustainable funding policies.
This project was launched in February 2016.
Decred has a maximum supply of 21 million DCR tokens; however, only 12 million are in supply.
Company 0 is the main driving force behind the creation of Decred. The company's goal is to use the capabilities of blockchain technology to create better personal data protection and bring organizational liberty to projects. Jake Yocom-Piatt is the founder and CEO of the company.
It's possible to make money by investing in Decred as a short-term or long-term investor. Ensure you invest in yourself by learning how to go about it to ensure you have a fair chance of making the most of the opportunities the token offers.
Yes. Most reputed platforms will insist on KYC regulations and will require you to confirm your identity.
Decred uses a hybrid of Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanism.