• Victor Hernandez

DAI for beginners

To start understanding DAI, we have to first understand the term stablecoin. Stablecoins are cryptocurrencies with the difference that their value is controlled, unlike traditional tokens or cryptos, such as bitcoin or ether. Normally, stablecoins are associated with a "fiat" currency such as the dollar or the euro, material goods and even another cryptocurrency.

Now we are ready, DAI is a stablecoin, created by Maker DAO developed in ethereum, whose value is associated with the dollar, this means that ideally, 1 DAI will always be worth 1 dollar.

But why use DAI and not just use normal dollars? Below we explain some of the advantages that DAI has over the currency that we all know.

  • It has no borders, this means that no matter where you are, you can send, receive or keep DAI

  • It can protect you from inflation in your country, even if the government regulates the purchase of dollars

  • Payments can be easily scheduled.

  • It is in a decentralized and transparent network, this means that it does not go through any bank or institution, making transactions safer and cheaper.

Now we know why they are better than using normal dollars, but what can we use them for? Well, the answer is simpler than you might think. For example, save safely, send money wherever you want, from wherever you want and at a very low cost, and even give loans that generate benefits in the short and medium term.

In short, DAI has all the advantages of a cryptocurrency, with the value of a currency that we appreciate in Latin America, the dollar. So if you are just getting into crypto, DAI can be a great way to start!

1 view0 comments