How to Buy DigixDAO - Where to Purchase DGD
DigixDAO (DGD) is an open-source peer-to-peer cryptocurrency built on the Ethereum blockchain. DGD has over the past couple of years seen remarkable growth against the US dollar, rallying from lows of $3 in 2017 to highs of $842 in 2021. With demand for the cryptocurrency's token rising amid a craze for tokenised gold, it appears the growth trajectory is upwards.
If you are new to crypto investing and wish to buy DGD, you'll find everything you need in this tutorial. We show you how to buy DigixDAO, what to consider before you invest and how to safely store your cryptocurrencies.
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Why Trade rather than Buy DigixDAO 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 DigixDAO Brokers
New investors looking to buy DigixDAO often have to ask about where to buy DGD. So it's not just about the easiest way to buy DigixDAO, but whether you can still buy the coin. The answer to these questions as well as the best way to buy DGD lies in one consideration: which top brokers offer the best places to buy DigixDAO?
Several regulated and reputable brokers are available across the globe, from where you can easily and securely purchase the token. These platforms are not just regulated but have been in businesses for many years. They thus offer the best in customer experience and security. A little research will therefore see you find a broker that suits your needs and one you can use to buy DigixDAO.
5 Things to Consider if you Want to Buy DigixDAO
Before you buy DigixDAO, it is important to take into account certain considerations. This is especially so if you are looking to make your first DGD purchase online. Here are five things to consider as you plan to buy the cryptocurrency.
1. Carefully choose your preferred secure payment method
To buy any cryptocurrency at a broker, you must first fund your account through one of the payment methods available on the platform. There are several deposit methods and different platforms that can support different payment methods. You should therefore choose a method that suits you.
Most platforms support credit and debit cards, but you can also choose from bank transfers, PayPal, Neteller, and Skrill among others.
Note that your choice of payment method should factor in things like fees, speed, and security. For example, while the credit card is fast, it is quite expensive. Paying with a bank account is the cheapest, but is not as fast.
2. Will you need to set up your own wallet?
Having a secure wallet to store your purchased coins is a critical factor to consider before investing in any cryptocurrency. Note that the built-in wallet available at the exchange you sign up with allows you to receive funds and buy coins. These custodial wallets, therefore, offer convenience when you are buying cryptocurrency and when you wish to hold funds there for short-term trading.
However, if you plan to hold the crypto-asset as a long-term investment, you need to move the funds to a cryptocurrency wallet you own and control. This means you alone know the private keys to your funds. As we'll see below, there are several types of wallets you can set up to securely store your DigixDAO.
Note that you don't have to set up a wallet if you plan to trade DigixDAO on a professional broker.
3. Comparing costs
To make the most of the growth within the cryptocurrency exchange space, take time to compare costs. It may be a little arduous, but leveraging your own research and trusted reviews, you can compare transaction costs and other fees across networks to help you maximise your investment. What you pay when purchasing an asset should be the best value to you.
4. Safety and security
Safety and security should be a top priority for you from the outset. It's no secret that cybercriminals are always out to take advantage of lapses and loopholes to steal. While the blockchain offers increased security of your funds, a data breach on the exchange or broker can leave you nursing a major loss.
No broker can guarantee 100% protection against cyber attacks, but you can augment the various measures in place to protect your funds. Having a secure password is one thing, but additional measures include using firewalls, enabling two-factor authentication (2FA), and anti-malware software. The broker you choose should also be regulated and offer a secure trading platform, with MetaTrader 4 (MT4) and MetaTrader (MT5) protocols important.
5. Can you understand and navigate the platform?
As you look to make your first foray into crypto, a crucial step is to take time to understand the platform you intend to use. For a beginner, some platforms may prove to be too complex to navigate, likely creating a bad first experience. Truth be told, some exchanges and broker platforms are designed with the professional user in mind. Here you might find the features to be quite advanced and confusing.
That's why you need to ensure you fully understand how the platform works and be comfortable navigating it before you invest your hard-earned money. In this case, a beginner is well placed to start off their crypto journey using a platform that offers a simple interface and is easy to navigate.
Ultimate Beginner's Guide to Trading DigixDAO
What is a DigixDAO Broker?
A broker is a regulated service or firm that allows investors an opportunity to invest by buying and selling financial instruments. It could be stocks, shares, derivatives, or bonds. Users pay a fee for the services. In cryptocurrency, the broker will allow you to buy or sell through CFDs. If you are looking to trade DGD then a broker platform is what you need.
What is a DigixDAO CFD?
CFDs are Contracts for Difference, a derivative product that allows one to trade the underlying asset without having to actually buy, own, or store it. CFDs allow investors to bet on the price movements of the asset in question. In this case, a DigixDAO CFD allows traders to speculate whether the DGD price will go up or down.
Therefore, instead of going through all the hassle to buy DigixDAO, you would simply open a DGD trading position. If you are bullish about the price, you buy the cryptocurrency and if the deal goes your way, you get profit. Understanding the market and asset before you trade CFDs is crucial, as the risk of making a loss shouldn’t be ignored in a volatile crypto market.
What is the Benefit of DigixDAO Regulation?
Regulation is important in the sense that it provides a framework by which to protect the cryptocurrency user, other market participants, and the service provider (brokers).
You might not want to share your personal data in KYC checks that are compulsory on regulated platforms. You could therefore find unregulated providers attractive. However, as noted earlier, if you use an unregulated platform and you happen to lose your money outside of trading, you might have next to zero chances of getting it back. This is because there might be no one to hold responsible.
In contrast, a regulated platform is registered and licensed to operate in certain jurisdictions. These platforms are financial firms that must protect their users and compensate them if a loss that occurs is deemed the broker's fault. You are safer trading on a regulated platform.
What is the Best Payment Method for Buying DigixDAO?
We've already mentioned that there are different payment methods you can choose from when looking to buy cryptocurrencies. As you'll soon find out, the process of purchasing crypto is quite straightforward, regardless of the payment method. However, we want to go further here and detail the best payment option for buying DigixDAO.
Buy DGD with a credit card: Credit cards offer the fastest and easiest way to buy DigixDAO, with this payment method supported on most exchanges. Simply go to an exchange that supports buying DGD with a credit card, select the cryptocurrency to buy, and the amount. Enter your wallet address and complete the purchase to receive coins. That's it. You have bought DGD using your credit card.
Buy DigixDAO with bank transfer: Bank transfers offer a cheaper way to buy cryptocurrencies, especially if you wish to save on the cost associated with credit card transactions. You can buy DGD directly with fiat on a few platforms across the globe. If the platform allows for bank account deposits but does not support direct purchases, buy another cryptocurrency and use it to buy DigixDAO.
Buy DigixDAO with Cash: You can also buy DGD and pay with cash. This payment method allows you to pay in your local fiat money, with the purchase made from sellers on peer-to-peer platforms. The trade can be made offline, but you must first get an individual willing to sell you DigixDAO for the cash. Local P2P platforms are your first port of call if you wish to buy DGD with this payment method.
The Verification Process for Trading DigixDAO
Identity verification is an important aspect of the sign-up process on a regulated broker platform. After opening the account, the broker will ask you to verify your identity by uploading certain documents. In most cases, it's a national ID card, passport, or drivers' license. You might also need to upload a utility bill as proof of residence.
It helps protect you - the user - against identity theft and other fraudulent activities likely to be carried out by exploiting your identity. It also protects the broker and the other users by keeping potentially malicious actors off the platform.
DigixDAO: Long vs Short Term Investment
As you look to buy DigixDAO, you need to have an investment goal for yourself. In principle, you need to decide whether you are buying into the cryptocurrency as a short or long-term investment.
If you have plans for a long-term investment in DigixDAO, then your goal would be to buy DGD, store them safely in a wallet, and look to reap future returns. The long-term investor has a belief in cryptocurrency and therefore doesn't bother about what happens now or a certain period down the line. It's here that we have investors called "HODLers" - those who hold onto their positions for a long time regardless of short or medium-term market conditions.
On the other hand, we have short-term investors whose goal is to make short-term gains on the asset. This investment strategy requires that you be on top of developments within the market, monitor news, and thoroughly understand what moves the price of DigixDAO. This is because you will be betting on the price of DGD rising or falling within a given period. This might be a bit riskier, but when done correctly does have great income potential.
Why Buy DigixDAO rather than Trade?
Tokenisation of physical assets, including gold, is attracting global interest and could explode as more people look to blockchain-based verification of an asset's proof of existence.
If you want to maximise your investment potential, look to buy DigixDAO cheap. Target a good entry point, especially during a market downturn. Always look for the cheapest way to buy DigixDAO, applying the tips we offered above.
Even as you plan to buy and hold, remember that the process of buying is quite involved. You need to do some due diligence through extensive research, a necessary step before you commit your money. This should help you get on top of processes like setting up a secure wallet and enabling security features to protect your investment.
What Fees are Involved in Buying DigixDAO?
Fees and other costs are a feature of almost all transactions, whether in crypto or legacy systems. The lack of intermediaries is one big advantage in crypto, which means most transactions attract next to zero fees on most networks. Even where the costs are more significant, crypto is multiple times cheaper than traditional systems.
So, what fees may still need to be noted when it comes to buying DigixDAO? The fees and other applicable costs may vary from exchange to exchange or on brokers. Here are the likely charges you may encounter when buying DGD.
Deposit fees: Most cryptocurrency exchanges and brokers do not charge deposit fees when you send money to your account. Where it's charged, it might be very small and vary from platform to platform. You should also note the fees attached to different deposit methods, like credit card and bank transfer. These charges count towards your overall investment cost.
Withdrawal fees: Withdrawal fees may or may not apply depending on the platform. In most cases, exchanges and brokers that charge withdrawal fees take a very small percentage of the overall withdrawal amount.
Transaction fees: These fees go to the network on which the transactions occur. Transaction fees on DigixDAO are very small and go into block rewards for network validators.
Safely Storing Your DigixDAO
You can safely store DigixDAO in any compatible wallet, including those that support Ethereum given that DGD is an ERC-20 token. The wallets fall into different categories, which we detail below.
Web Wallet: Web wallets are built-in storage facilities available on online platforms like exchanges and brokers. They are also called hot wallets and offer convenience and are easy to use. However, always being online leaves them vulnerable to hackers and other malicious attacks. To be safe, enable all security measures and only keep a very small amount of coins in web wallets. Top examples are MyEtherWallet, Guarda Wallet, and MetaMask.
Mobile Wallet: Mobile wallets store your coins on mobile devices, which you can use conveniently to trade on the go or as cold storage. Apart from your device's password, the unlock code, and other built-in security protocols give mobile wallets an added layer of security. However, there's potential for threats if you connect to the internet, or give the device to someone with full physical access. Examples of mobile wallets you can use to store DigixDAO include Coinomi, Trust Wallet, and Jaxx.
Desktop wallet: Desktop wallets work on your computer and offer less convenience compared to mobile wallets. However, they are much more secure. Additional security measures include 2FA, anti-virus, and anti-malware software. Top options in the market include Atomic Wallet, Mist, Parity, and Exodus.
Hardware Wallet: Hardware wallets offer the highest level of security for cryptocurrencies as they largely stay offline. They, therefore, offer cold storage capabilities. They come in different designs and shapes but are usually small, USB-like devices that boast security measures such as an unlock PIN code, passphrase, and seed key. You can hold your coins in this type of wallet for as long as you want. Leading examples of hardware wallets for DigixDAO are Ledger Nano, Trezor One, and KeepKey.
Wallet Combinations: A wallet combination is an option that allows you to store your coins across two or more different wallets for increased security. For instance, you can utilise this option by interlinking a web wallet and a hardware wallet, or a desktop wallet and hardware wallet. MyEtherWallet and Ledger Nano is a great wallet combination for many ERC-20 tokens, including DigixDAO.
What Other Coins Can I Trade or Use to Buy DigixDAO?
You might need to first buy another cryptocurrency before using it to purchase DigixDAO. On most exchanges and broker sites, it means first acquiring one of the top two coins in Bitcoin (BTC) and Ethereum (ETH).
It is easy to buy either BTC or ETH on any of the major cryptocurrency exchanges or broker platforms using different payment methods. Simply trade the ETH or BTC for DigixDAO, or withdraw them to another exchange that allows you to buy DigixDAO with Ethereum or other altcoins.
What's the Smallest and Largest Amount of DigixDAO I Can Buy?
What's the minimum purchase for DigixDAO, or just how much DigixDAO can you buy with the money you have? This is a question you might need to answer if you don't know whether you can buy a whole DGD or small amounts of DigixDAO. The token is not divisible into small units, which means you cannot buy less than one DigixDAO. If you are on an exchange, how much you buy will depend on the amount of money you want to invest and the specific limits on the platform.
Can I Buy DigixDAO Anonymously with no ID? Is it Safe and Legal to Buy DigixDAO?
You can certainly buy DigixDAO anonymously. To buy the cryptocurrency with no ID, first, find a platform that does not ask for an ID or require KYC compliance or a P2P exchange from where you can arrange an offline purchase. However, note that the transactions are still recorded and publicly visible on the blockchain. Note also that if you want a secure DigixDAO purchase or a place to buy DigixDAO safely, then you need to use regulated and reputable platforms.
Will Buying DigixDAO Make Me Money?
For the question of whether DigixDAO can make you money, the answer is yes. DigixDAO is a cryptocurrency project that trades on various platforms in the market. You can buy the DigixDAO tokens to take advantage of the price movement of the underlying gold bars as well as the security and decentralisation of cryptocurrency. However, there is no absolute guarantee you will make money.
In early 2018, DigixDAO (DGD) rallied and maintained a strong upside even as most of the crypto ecosystem crashed under the weight of a bear market. In 2021, DigixDAO's price increased from lows of $37 to reach $842, with ROI currently standing at over 14969% as per data on CoinGecko.com. Although prices did dip afterwards, its stellar performance showed that the use of tokenised assets provided an attractive proposition for investors.
If you are wondering "should I buy DigixDAO" or "what's the best price to buy DGD," we have the details to help you answer these questions. Visit our DigixDAO Buy Page for more information that should help you come to a wise decision.
How to Spend your DigixDAO
DigixDAO is one of the most popular tokenisation cryptocurrency networks and its token continues to attract a growing number of retailers. DGD has value and is thus accepted at online stores as a payment currency. You can spend it to pay for goods and services. This not only benefits you in terms of speed but also the added advantage of low transaction fees. You can use DigixDAO to pay online anywhere through the NOWPayments crypto payment gateway.
How to Sell your DigixDAO
If you have DigixDAO and decide on selling, then know that you can easily do this on any exchange or broker platform that supports the cryptocurrency. You can sell coins in your private wallet or those already on the platform. For the case of the former, you will need to transfer the coins onto the exchange before you proceed to sell them.
To sell DigixDAO, follow these simple steps:
- Move your DigixDAO tokens to an exchange wallet.
- Navigate to the Sell DigixDAO page and click on the coin you wish to trade DGD for, usually either Bitcoin or Ethereum. Make the trade.
- Sell the BTC or ETH you just got for fiat money, such as USD or Euros.
- Withdraw your fiat money into your bank account.
If you invested in the coin by buying a CFD, the process is even easier as you don't need to go through the process of moving coins onto the exchange. Just move to close your position, and your profits will be denominated in fiat currency.
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Frequently Asked Questions
Yes. DigixDAO is legal in most countries across the globe. Some countries have banned crypto trading though and you might need to find out before you proceed.
DigixDAO is a tokenisation platform that has gained a lot of attention for its tokenised gold bars.
Yes, this is possible on some exchanges and platforms.
Yes. DGD is an ERC-20 token that you can store in any ERC-20 compatible wallet.
If you wish to buy DigixDAO without owning it, go to a broker that supports CFDs for the coin. Most popular platforms are however yet to support this coin, which means you might need to be careful with the platform you choose.
Most reputable exchanges and brokers do not support the buying of DigixDAO directly with a credit card. You can, however, buy Bitcoin or Ethereum with a credit card and then trade them for DGD tokens.
2 million. Currently, there are around 92,744 tokens in circulation, 5% of the total supply.
DigixDAO is a popular cryptocurrency supported on several top exchanges. You can check on CoinMarketCap or CoinGecko for a list of platforms that support DGD trading.