How & Where to Buy Maker (MKR) - Beginner's Guide

What is Maker Coin (MKR)?

Explaining Maker MKR in a few sentences is tough, but we’ll do our best. MKR is related to another cryptocurrency, DAI. Each DAI is worth $1 all the time. People who use DAI have to lock up other cryptocurrencies like Bitcoin and Ethereum, and this collateral gives inherent value to their DAI, and the other DAI in the system. However, if the coins used as collateral ever lose value, MKR coins will be created and sold to pay that debt.

On the other hand, if the cryptocurrencies used as a collateral rise in value (as most of us think they will in the long term), MKR coins will be destroyed because they won’t be needed, and people who hold Maker MKR will find that their coins are worth a lot more money! This has already been proven to work, as Maker MKR went from a price of just $24 USD last year to almost $1,700 in January 2018! At just over $700 today, Maker coin is a must-buy for many. If you feel the same way, we’ll now show you how to buy Maker coin of your own.

5 Things to Consider if you Want to Buy Maker

While many of you may find it easy to simply sign up to a platform and buy MKR, a lot is going on behind the scenes and your oversight can land you in hot water. We advise you to look into these 5 tips before buying Maker.

Carefully choose your preferred secure payment method

Most platforms will have more than one funding option for your account so that you can buy MKR easily. Check out beforehand which payment methods are offered by your preferred platform and see what best suits you. The method should not only be secure, but any associated charges should also be within your budget.

Will you need to set up your own wallet?

Maker tokens can only be stored in wallets and you will need one. Crypto platforms do provide one when you sign up, but these are internal and you can lose your MKR tokens if anything goes wrong with the platform. A private Maker wallet is always a better option, especially if you want to store them for the long term.

On the other hand, if you are using  Contract for Differences (CFDs) through a broker, you will not need a wallet. CFDs are derivatives that derive their value from the Maker price once you close the CFD, you get the fiat value of your investment. No actual transfer of MKR tokens takes place if you use CFDs and a wallet is not required.

Comparing costs

MakerDAO and its protocol run on Ethereum and as ERC20 tokens, any transaction you do will cost a fee for using the ETH network. You need to have an idea of the current fee because it will cost you extra. Though the ERC20 fee might seem high, it is still considerably less as compared to fiat.

Safety and security

The Ethereum network currently employs the Proof of Work consensus and is one of the most secure blockchain networks available today. With the current computing power dedicated to the network, it is practically impossible to take over the network. Even if a fraudulent transaction is made by a miner, the others would reject it and preserve the integrity of the network. Running on the Ethereum network, the MKR tokens enjoy the same level of safety.

Brokers and exchanges also implement various mechanisms to ensure the safety of their users. You should find out what security features are offered by your selected platform. The most common is a two password system called Two Factor Authentication (2FA). Whitelisting of withdrawal addresses is also offered by some sites and is a useful security feature.

Can you understand and navigate the platform?

As the crypto trading and investing industry has matured, the platforms have also started to get complex in structure, and today, it is not uncommon for many platforms to offer the ability to analyse different data on the trading screen. Order books, different trading charts are available on most platforms at the click of a button but it can be a bit overwhelming for new users.

You should get familiar with the setup first so that you know what you are doing when buying MKR.

What is the Best Payment Method for Buying Maker?

While the funding method you select will rely on your selection of the broker, you need to be aware of all the options you might have.

Buying Maker with Bank Transfer

A bank transfer is the most commonly available option on all platforms. There might be no charges on the platform side to fund your trading account, but your bank will most probably charge you, especially if it is a cross-border payment. Bank transfers are very secure but can take time to process.

Buying Maker with Debit/Credit Cards

Cards are very convenient and the transactions can take a few seconds to a couple of minutes, making them a preferred choice to instantly start trading. Yet the speed comes at a cost. Platforms will charge you for depositing through debit or credit cards and you will end up paying more than you intended to.

Buying Maker with PayPal

PayPal is one of the largest payment networks. However, PayPal is currently not widely available on most platforms and the costs are higher as compared to other payment methods.

Buying Maker with Other Cryptocurrencies

Cryptocurrencies are much easier to use and the fees are minimal if you decide to use a crypto token to fund your platform’s account. If your platform accepts cryptocurrencies, look at the list of acceptable tokens. If you already possess crypto that is supported, you can simply send it over and start buying MKR tokens.

Buying Maker with Cash

Using cash can be pretty attractive as you will not be paying any transaction cost and get your hands on Maker tokens immediately, but it comes with its own set of risks. First, you will need to find someone willing to sell MKR. Buying Maker tokens through the cash route is risky as there is no guarantee that the person will send you the coins when you have paid so it is always better to stick to regulated platforms

What Fees are Involved in Buying Maker?

Maker exchanges and brokers are for-profit businesses and earn from the services they provide. Some of the fees you will encounter include:

Deposit Fees

Depending on the funding method you select, the platform may or may not charge you. Normally, using cards always comes at a cost. Even if you do use a deposit method that doesn’t charge a deposit fee, you need to be aware that your bank or card provider might impose some fees. Even using cryptocurrencies to deposit is not free from charges at the sending side as you will need to pay the miners or validators to process your transaction.

Withdrawal Fee

Remember nothing in the world is free. Trading and exchange platforms will incentivise you with low to no deposit fees, but most platforms will charge for withdrawals. The best method to avoid high withdrawal fees is to check beforehand. Most platforms will usually impose a flat fee on withdrawals.

Transaction Fee

Even if you find the cheapest method to fund your account, the bank or card company will charge you for the transaction. This is also true even if you prefer to use cryptocurrencies to fund your account, though the fees asked by the network can be considerably lower than fiat.

Safely Storing Your Maker

There are several types of wallets available today that you can use to secure your MKR tokens. Broadly, they are categorised into three types:

Web Wallet

Web wallets provide you with the convenience of accessing your funds from any device. As long as you can get online, you can access the wallet by using a browser. Using an exchange to buy Maker will automatically send the tokens to the platform’s internal wallet. This makes the use of web wallets extremely convenient, but since the wallets are maintained at the platform’s end, you can be locked out or face complete loss of funds if the platform decides to suspend activities due to a hacking attempt.

Mobile Wallet

Mobile devices have become an integral part of our life today and it is inconceivable to think that we will not use one. Using mobile wallets offer you the ease of having your funds with you, no matter where you go. Another advantage is that you can use the in-built security of your devices to put in secondary safety measures. The simple act of using a mobile password or modern fingerprint reader renders your mobile (and your wallet) inaccessible to unauthorised persons. Trust wallet, Atomic wallet and Coinomi are some popular mobile wallets.

Desktop Wallet

Desktops don’t have the mobility that mobile wallets or web wallets have, but they offer higher security since there are numerous software that can be installed and make it difficult for bad actors to gain access to the wallet (2FA, anti-virus or firewalls). Popular options for desktop wallets are Parity and Mist.

Hardware Wallet

Hardware wallets can be expensive but the high-grade security they provide is worth the money. As hardware devices, you can disconnect these from the Internet. No matter what hackers do, they cannot access your MKR tokens unless and until they get their hands on the device first and the private keys. Ledger Nano S and Trezor are the most famous hardware wallets available in the market.

What Other Coins Can I Trade or Use to Buy Maker?

Most platforms will allow you to buy or trade Maker with not only fiat but other cryptos as well. You can buy Maker with Bitcoin or Ethereum normally, but stablecoins such as USDT and other altcoins may also be offered.

You can navigate on the platform to Maker and find all the trading pairs offered. Simply select the pair that you want to use, place an order and wait for it to execute. While executing the order, be sure to look at the fee you might be charged for the conversion. Exchanges and brokers will charge you either a maker or a taker fee (depending on your type of order).

What’s the Smallest and Largest Amount of Maker I Can Buy?

How much MKR you can buy depends on the platform that you are using. Maker has already appreciated well and as of writing, runs well above $3,500. Some platforms allow purchases for as low as 0.0001.

The largest amount that you may be able to buy will depend on several aspects of the platform (order book size or matching rates) and any limits set due to regulations or different KYC levels.

Can I Buy Maker Anonymously with no ID? Is it Safe and Legal to Buy Maker?

If you want to buy MKR anonymously, you can use a decentralised exchange (DEX), where you can easily swap your existing crypto for Maker coins. You can also use peer-to-peer exchanges to buy in cash.

Buying Maker this way is not without its drawbacks. There is no guarantee that the individual will honour the purchase and you have no surety on the safety of the DEX. If you prefer to buy MKR safely, you will need to use regulated platforms and that means you need to make a compromise on anonymity.

But is buying MKR illegal? It would be best to seek proper legal advice on the laws governing your locality or country. The authorities across the globe have different takes on cryptocurrencies. Some are perfectly fine with it as long as KYC and AML laws are followed, while others have declared crypto illegal.

Will Buying Maker Make Me Money?

MKR is up 500% this year alone, outstripping any traditional investment. No one can predict the future, but if you do want to make money, we would suggest you do some research into the different factors that affect the MKR’s price. You can also check our Maker Price Page to have a fair idea of where the governance token is headed.

How to Spend your Maker

Maker tokens are primarily meant to let people exercise their rights to determine the future actions of the Maker protocol and as such, have no monetary role in the ecosystem.

However, the tokens do have actual value and that means, the token holders can use these in the open market to buy goods and services. Maker is not as acceptable as other major cryptocurrencies like Ethereum, Bitcoin or even USDT, but you may be able to find a merchant or a service provider who is willing to accept it, especially when there are whole platforms dedicated to allowing merchants to accept a wide range of crypto payments.

How to Sell your Maker

You will need to transfer the MKR tokens from your wallet to an exchange or broker platform. Then, you will need to place a sell order. You can either sell your Maker tokens for fiat and withdraw them to your bank account or decide to sell them against another token.

Using a CFD with a broker makes it even easier. Simply close the CFD and withdraw your earnings to your account.