After the innovation of the first cryptocurrency Bitcoin came many new cryptocurrencies which are popularly known as altcoins. In that case, investors are open to numerous alternate options, making them not stick to one choice BTC. Among many alternative currencies or altcoins, today we are going to let you know about DAI cryptocurrency and the best DAI wallet.
About DAI cryptocurrency
DAI comes as a decentralized cryptocurrency that comes to maintain a stable value of 1:1 against the USD (US Dollar). 1 DAI must be equivalent to 1 USD. When we are discussing DAI then we are referring to a stablecoin. These can be understood as the versions of traditional currencies including the United States Dollar, EURO, or Norwegian krone.
There are multiple reasons for using cryptocurrencies, especially referring to stablecoins. What makes them different from usual cryptos is their ability to withstand at the time of uncertain price changes which is common with other usual cryptocurrencies.
Some more important facts about DAI
- There are other important facts about DAI that are must to be known for a newbie crypto enthusiast.
- Technically, other than being known as a stablecoin, DAI can also be understood as an application that is based on Ethereum on the Ethereum blockchain.
- You will always see this cryptocurrency under the list of stablecoins, or stack coins. Stable cryptocurrencies are those which are connected to other stable assets like Gold, the dollar, or the pound.
- Since the creation of DAI cryptocurrency has been done upon the Ethereum blockchain, its storage and transfer can be done directly to anyone worldwide. There is no mandatory need to seek third parties be it banks or any of the central institutions.
- Numerous other stablecoins are pegged to the USD with a 1:1 value. Tether is one big example of stablecoin to be quoted. It has a reserve of actual USD bonds and other securities that would help back up each unit of existing USDT, monitored by a centralized organization.
- USD coin is also a popular stack coin that functions in a similar kind. In comparison to USDT (Tether) or any of the top stablecoins, DAI comes as a decentralized stablecoin where there is no control of any centralized organization over the circulating supply of new DAIs.
- Having the possibility of volatility in the crypto market, referring to DAI comes as the best option as a protective fence against market fluctuations.
- DAI is also used for its services on a wider scale for decentralized loans and interest-bearing funds.
- MyEtherWallet is the best DAI web wallet facilitating its users in retaining their private keys. Plus, it also adds a layer of security in contrast to its other rival online DAI wallets. MetaMask comes as another top example of being the best web wallet for DAI.
- If you have been searching for a top DAI crypto wallet, then Exodus and Jaxx can also be referred to.
So these are some of the essential facts about the DAI cryptocurrency that you have been reading in this article. Other than Tether, DAI also comes as one of the well-known stable cryptocurrencies that can withstand market volatility. To explore more about crypto wallets, sign up or log on to the Cryptoknowmics website.