\nHow to become good at crypto trading<\/a><\/span><\/div>\n
What is DAI?<\/h2>\n
![\"DAI\"](\"http:\/\/kryptovaluta.info\/wp-content\/uploads\/2021\/10\/DAI-krypto-150x150.png\")
DAI is a form of cryptocurrency, or more precisely – a stablecoin. Unlike most other forms of cryptocurrency, DAI has a very stable value. The value is linked to the US dollar (USD), and follows the exchange rate fluctuations of this currency.<\/p>\n
This is one of the characteristics of stable cryptocurrencies – the value is linked to the value of commodities or traditional currency. DAI strives to maintain a value as close as possible to $ 1 through automated smart contracts on the Ethereum blockchain.<\/p>\n
\nOur articles on stack coins<\/a><\/span><\/div>\n
DAI provides security in crisis situations<\/h3>\n
According to MakerDAO<\/a> , the price for one unit of DAI may deviate from 1 USD, but you will still always get back 1 USD for 1 DAI. This is because in crisis situations a function called Emergency Shutdown will be activated.<\/p>\n Emergency shutdown is activated, among other things, in crisis situations where DAI is exposed to data breaches or hacking, or during updates.<\/p>\n The function can also be triggered if the cryptocurrency market is irrationally weak over a period of time.<\/p>\n DAI is based on complex technology. It is not possible to explain everything in detail here, and fortunately there is no need for you to understand the mechanics behind DAI in order to buy the currency.<\/p>\n DAI is a stable coin that has security in cryptocurrency, more specifically Ethereum. In short, they are built on DAI smart contracts, and these are often referred to as Market Protocol or dApp. You can consider dApp as a decentralized app in the blockchain.<\/p>\n You can compare the purchase of DAI with borrowing money from a bank. When you take out a bank loan, you are welcome to provide security in an asset, whether it is a house or a cottage. In other words, DAI can be considered a loan where Ethereum is the security.<\/p>\n As Ethereum is a cryptocurrency with high volatility and exchange rate fluctuations, security must withstand these fluctuations. Therefore, you must provide 150% of the value of DAI in security. Thus, the prices for one DAI can be kept so stable.<\/p>\n Since DAI has security in Ethereum, you may be wondering what will happen if Ethereum suddenly loses a lot of value. In such cases, the Ethereum currency will be sold, so that your loan is covered.<\/p>\n In other words, you do not have to worry about the value of Ethereum dropping if you have DAI.<\/p>\n DAI is an excellent cryptocurrency for anyone who wants to invest in crypto, but who at the same time thinks that the risk and volatility are too high. With DAI, you get cryptocurrency, but with a much lower risk of value fluctuations.<\/p>\n Many who invest in traditional cryptocurrencies such as Bitcoin or Ethereum choose to transfer the money to DAI during periods of high risk. Then they do not have to convert the cryptocurrency to a traditional currency such as NOK or USD, at the same time as the risk is low.<\/p>\n DAI is a cryptocurrency you can buy from exchanges that sell cryptocurrency. There are several favorable sites to choose from, and we strongly recommend choosing a player who is registered with Finanstilsynet. Here are some great crypto exchanges for Norwegians:<\/p>\n You can not find DAI on the Norwegian Block Exchange at the moment, but both eToro and Firi have DAI. To buy DAI, you must first create a user account on the respective crypto exchange. You create a username and password, and enter your email.<\/p>\n Once you have verified your user, you are ready to make a deposit and to purchase DAI. You navigate to “markets” or similar to find the various cryptocurrencies that are sold, and DAI is among these.<\/p>\n Once DAI is purchased, the digital currency can be stored in a digital wallet. You can exchange DAI for Bitcoin or any other cryptocurrency, or vice versa. With the freedom to switch to DAI if needed, you can secure yourself against large falls in cryptocurrencies.<\/p>\n Besides DAI, there are a number of different types of stack coins. One of the most famous is Tether, which follows US dollars in exchange rates. There is also another known form of stablecoin, and this is called USD Coin or USDC. This also has the same exchange rate as USD.<\/p>\n When you buy stack coins, these can have security in different values. Some have security in other cryptocurrencies, while others have security in traditional money or commodities such as gold.<\/p>\nHow does DAI work?<\/h2>\n
\nEthereum guide – How to buy ETH<\/a><\/span><\/div>\nWhat happens if Ethereum falls in value?<\/h3>\n
![\"Ethereum\"](\"http:\/\/kryptovaluta.info\/wp-content\/uploads\/2021\/10\/ethereum-1024x576.jpg\")
<\/p>\nWho is DAI suitable for?<\/h2>\n
\nWhat is Bitcoin<\/a><\/span><\/div>\nWhere can I buy DAI?<\/h2>\n
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Stablecoins other than DAI?<\/h2>\n