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 where and how to buy Decred to ensure you don’t miss out on the opportunities the token offers.
DCR is the native cryptocurrency that powers the Decred blockchain. In addition to operating as a native currency, it helps in maintaining and managing the Decred network. Consequently, participants and miners who successfully add new blocks into the blockchain are rewarded in DCR. While DCR is generated through the cryptocurrency mining process, the total number of DCR coins that will ever be in existence is capped at 21 million.
Mining is the process that allows people to assume full ownership of DCR tokens. While mining can be lucrative, it can also be tedious given the amount of power required and setting up of machines required to launch successful mining processes. Likewise, the process is quite engaging as it requires one to set up online wallets for safe storage of mined DCR coins.
Trading DCR through financial instruments such as Contract for Differences is a sure way of staying clear of the mining hustles and storage requirements. CFDs allow people to profit from DCR price swings in the market. However, one does not get to own the actual coin.
While mining is one of the ways that people use to get hold of the Decred cryptocurrency, it can also be bought. Several cryptocurrency exchanges have added support to altcoin, thanks to its growing popularity. Likewise, exchanges provide ideal platforms through which people purchase the tokens for ownership or speculation purposes.
Decred is currently available for buying and selling in several centralized cryptocurrency exchanges. Some of the major crypto exchanges that have added support to the community altcoin include Binance, KuCoin, and Huobi.
Cryptocurrency exchanges such as Huobi allow people to exchange their Bitcoin or Ethereum holdings for a given amount of DCR token. Additionally, Exchanges like Bitfinex enable people to deposit Fiat currency into their accounts which can then be used to buy DCR while using a given exchange rate.
Coinbase is another cryptocurrency exchange that allows people to use their debit and credit cards to acquire Bitcoin. In return, the Bitcoin tokens can be exchanged for a given amount of DCR tokens.
LocalBitcoins is another exchange that allows people to purchase Bitcoin, which can then be exchanged for Decred (DCR) tokens. The peer-to-peer exchange stands out partly because it does not require any identification and enables one to purchase any token using Bitcoin. Once a purchase is made, one can transfer their DCR tokens to a virtual wallet.
Additionally, Decred created its own crypto exchange dubbed DCRDEX. The exchange leverages atomic swaps for trading Decred Bitcoin, Ethereum, and Litecoin in pairs. The decentralized exchange comes with zero trading fees and leverages Lighting Network Payment to enable scaling.
Decred leverages a hybrid Proof of Work and Proof of Stake governance structure. With the hybrid system, each block mined must be verified by at least three verifiers. Therefore, the system averts the weaknesses of having to rely on either PoW or PoS.
The Proof of Stake system operates by requiring anyone looking to participate in the project to own some DCR tokens. The DCR holdings allow one to buy tickets on the network to participate in the system.
The Proof of Work mechanism, on the other hand, allows miners to expend energy and use it to solve complex puzzles. A correct answer to a puzzle must be verified for a new block added to the blockchain.
The PoS mechanism allows those who own DCR to validate a transaction on the blockchain and participate in the network’s governance process.
Buying Decred in an exchange is a sure way of assuming ownership if one intends to hold the digital currency for long. If you believe in the cryptocurrency’s long term prospects, then an exchange would be the perfect spot to visit to buy some coins for long term holding.
While Buying Decred in an exchange, it is important to settle on a reputable and regulated exchange to avoid losing funds. It is also important to settle on an exchange that provides competitive rates for purchase and withdrawals.
An exchange that charges higher fees to buy Decred might necessarily not be bad. Higher fees could come with an added layer of security that ensures one’s holdings are adequately protected from hackers. Similarly, the exchange could be charging higher fees accompanied by faster transaction times.
The regulatory status of an exchange is a must if one is to deal with an exchange that adheres to the best industry practices. Regulated exchanges accord some of the highest levels of protection to people’s crypto holdings.
While buying Decred in an exchange, it is always advised to store the coins in a wallet away from exchange networks. Therefore, setting up a cryptocurrency wallet is the first step to buying Decred in an exchange. In the cryptocurrency world, wallets come either in hardware or software.
A hardware wallet stands out as it is a physical device that accords safe storage for DCR coins while cutting any links between the coins and the internet. They are often dubbed Cold storage, given the connection between the wallet, and the internet is cold.
Hardware wallets are some of the best as they offer complete protection from hackers. Given the lack of internet connection, a hardware wallet can’t be hacked.
On the other hand, software wallets are software programs that exist in phones and PCs designed to offer storage to cryptocurrencies. They come as downloadable pieces of code. A key is needed to decrypt a software wallet to be able to access its holdings.
The fact that software wallets are connected to the internet means they are highly susceptible to hacking incidents. However, they offer the highest levels of convenience and portability as one can access their holdings from virtually anywhere.
Decred already offers desktop and mobile wallets compatible with hardware wallets to use for safe DCR token storage. Decrediton is the official desktop wallet for the Decred token. The wallet is fully open-source and has been around for quite some time.
Decrediton is fully open source and offers an excellent interface for storage, sending, and receiving Decred coins. The Desktop wallet is available for use in all the major operating systems, including Windows, MAC, and Linux. There are also mobile wallets for iOS and Android devices available for download on the company’s website.
It also stands out given the security measures in place that ensure people’s holding are securely stored. Decredition is a perfect fit for holders looking for a secure place to store and stake their Decred tokens.
However, it is important to note that you cannot solo-stake your holdings in the wallet. Instead, you must make use of a staking pool or Voting Service providers.
Once you have settled on a hardware or software wallet, the next step to buying Decred on an exchange entails selecting an exchange. You can always look to buy Decred in Binance, KuCoin, and Huobi. The exchanges charge specific fees for their services, and each one of them comes with unique registration processes.
Once you have selected an exchange, check out the payment option that the exchange offers to fund an account. Some of the payment options offered by most exchanges include bank transfers, electronic transfers with Skrill and PayPal, as well as bank cards.
Each payment option stands out in its own way. Therefore, you should be able to settle on an option that meets your needs. For instance, bank transfers are known to process payments within minutes, thus, offering the highest level of convenience.
Once you have registered an account and funded it, buying DCR on the exchange would be as easy as clicking buttons. However, it is important to note that different exchanges offer different options for buying Decred.
For instance, some exchanges allow one to buy DCR with fiat. In this case, you only have to deposit money and click the buy option to purchase the desired amount of DCR coins. Other exchanges, on the other hand, would require you to Buy DCR using other cryptocurrencies such as Bitcoin or Ethereum.
While cryptocurrency exchanges allow people to buy Decred coins and offer storage services, they are usually not the best for storage. In an era where hackers are always looking to steal people’s holdings in exchanges, it is highly recommended to only store DCR tokens in a hardware or software wallet.
Once you have bought DCR coins, it would be wise to transfer them to a wallet. Withdrawing and storing in a private wallet is a pretty straightforward process from an exchange. This process should only be undertaken by people who intend to hold on to their DCR coins for some time.
By leveraging PoW and PoS mechanisms, Decred is extremely difficult and expensive to attack. The hybrid model ensures all incentives are aligned with miners and voters interests, therefore, providing checks and balances, the key to long term stability
For DCR transfer from an exchange to a wallet, simply input the address into the recipient address field of the withdrawal request in an exchange, and select the amount of DCR coins you wish to transfer.
There is a big difference between buying DCR and trading the coin. Therefore you need to have a big vision of what you intend to achieve as both are pursued for various reasons. Buying DCR allows people to assume full ownership of the community cryptocurrency.
When buying the coins, storage is crucial as they have to be stored somewhere, far from the prying eyes of hackers. Buying is ideal for long-term investors who believe in the long-term prospects.
Trading, on the other hand, allows people to profit from short-term price swings. It is a short term investment play where the focus is usually on generating profits rather than believing on Decred Blockchain prospects.
There is a big fundamental difference between holding DCR as a short and as long term investment. As a long term investment, you can always buy DCR from an exchange and transfer it to a wallet for safe storage. With this approach, one can buy DCR and hold for years to sell after a significant appreciation in price. This approach is useful for people who wish to support the DCR blockchain.
For those interested in profiting from short term price swings’, then DCR can be pursued as a short term investment. The process is pretty simple as it entails opening an account with a broker from where one can open long and short positions to profit as prices move up and down. This approach is especially useful to those who do not wish to own the coin outright, which also calls for the setting up of a wallet.
Below are five things you need to pay attention to before starting your journey of buying DCR on any platform.
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.
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.
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.
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.
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.
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.
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.
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 the 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.
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.
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 any upper limit on most exchanges but some jurisdictions may place a limit on the total amount of investment in a year.
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.
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.
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.
The selling process is simple. 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.
As is the case with any investment in the financial markets, one ought to be on top of their game when buying DCR. It is important only to buy when DCR has depreciated significantly and is expected to appreciate. This can only be achieved by doing extensive research on various platforms to settle on the right time to buy low.
Exchanges and brokers offer different prices and charge different fees for buying and selling DCR. While some of the platforms don’t vary much on costs, some do. It pays to only settle on a broker or an exchange that charges the lowest fees and offers competitive rates to purchase an optimum amount of DCR coins.
The unregulated nature of the cryptocurrency world calls for extra caution when it comes to buying and selling DCR. Security and safety should always be a big consideration while selecting an exchange or a broker. Similarly, a site should offer 2FA mechanisms as a way of protecting one’s account from unauthorized access. A site should also come with SSL certification.
In addition to crypto exchanges and brokerage accounts, it is also possible to Buy Decred via peer to peer platforms. Such platforms facilitate the transfer of Decred coins between wallet addresses. They are some of the best as they come with low transaction fees.
Another option involves mining the altcoin to assume ownership. The mining process entails connecting powerful computers or using specialized machines to solve complex mathematical problems. Any correct answer to a puzzle results in a reward in the form of a DCR token followed by a new block on the DCR blockchain.
Mining Decred using ASIC machines is the best and most profitable way, following a recent network upgrade. To start mining, you first need to acquire and install an ASIC machine. In addition to the mining machine, you will need a wallet. A wallet acts as a bridge between the mining gear and mining pools. A wallet offers safe storage for the coins mined.