How to Buy Decred (DCR)
Beginner’s Guide
What Is Decred (DCR)?
Decred (DCR) is a decentralized, open-source cryptocurrency that was launched in 2016. It is designed to be a community-driven digital currency that is controlled by its users. Decred uses a hybrid consensus model that combines Proof of Work (PoW) and Proof of Stake (PoS) algorithms, which allows for greater security, scalability, and decentralization.
Decred’s unique governance system allows its users to participate in decision-making and voting on important issues, such as development funding, network upgrades, and other proposals. This democratic approach to cryptocurrency governance sets Decred apart from many other digital currencies in the market.
Decred also features a built-in treasury system that is funded by a portion of the block reward. This treasury system allows the Decred community to fund development projects, marketing campaigns, and other initiatives that can benefit the network and its users.
Overall, Decred aims to be a self-sustaining, autonomous cryptocurrency that is owned and controlled by its users. Its unique governance model, hybrid consensus algorithm, and treasury system make it a promising project in the cryptocurrency space.
How to Buy Decred Summary
- Get a Terra Decred wallet (e.g. Ledger, Trezor , Exodus, Guarda, AtomicWallet)
- Find an exchange that sells Decred (e.g. , Binance ,OKX, Gate , Bitfinex , Kucoin)
- Deposit money and make the trade
- Withdraw the Decred to your wallet
Buying Decred in 3 Simple Steps
Step 1 – Get a DCR wallet
Decred Hardware Wallets
Decred (DCR) can be securely stored on hardware wallets that offer the highest level of security for cryptocurrency storage. Here are some of the best hardware wallets for storing Decred:
Ledger Nano S: The Ledger Nano S is a popular and affordable hardware wallet that supports Decred storage. It is easy to use, offers top-notch security, and supports a wide range of cryptocurrencies.
Ledger Nano X: The Ledger Nano X is a newer and more advanced hardware wallet from Ledger. It offers Bluetooth connectivity, a larger screen, and more storage space than the Nano S.
Trezor Model T: The Trezor Model T is a premium hardware wallet that supports Decred storage. It features a touch screen, advanced security features, and support for a wide range of cryptocurrencies.
KeepKey: KeepKey is a sleek and easy-to-use hardware wallet that supports Decred storage. It features a large display and advanced security features.
BitBox02: The BitBox02 is a secure and user-friendly hardware wallet that supports Decred storage. It features a touch screen, advanced security features, and is compatible with a wide range of operating systems.
Using a hardware wallet to store your Decred is highly recommended, as it provides the most secure way to store and manage your cryptocurrency.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
Decred Software Wallets
Decred (DCR) can also be stored on software wallets, which are applications that can be downloaded and installed on your computer or mobile device. Here are some of the most popular software wallets that support Decred:
Decrediton: Decrediton is the official Decred desktop wallet. It is available for Windows, Mac, and Linux operating systems, and allows users to send, receive, and store Decred. Decrediton is highly secure and provides advanced features such as staking and voting.
Exodus: Exodus is a popular multi-cryptocurrency desktop wallet that supports Decred. It is user-friendly and offers a built-in exchange service that allows users to swap their Decred with other cryptocurrencies.
Atomic Wallet: Atomic Wallet is a decentralized multi-cryptocurrency wallet that supports Decred. It is available for Windows, Mac, and Linux operating systems, as well as for mobile devices. Atomic Wallet allows users to manage their Decred and other cryptocurrencies, and provides advanced features such as staking and exchange services.
Coinomi: Coinomi is a popular mobile wallet that supports Decred storage. It is available for Android and iOS devices, and provides a user-friendly interface and advanced security features such as multi-signature support and encrypted private keys.
When using a software wallet, it is important to keep your device and wallet software up-to-date, use a strong password, and keep a backup of your wallet seed phrase in a safe and secure location.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Decred software wallets to get started with are undoubtedly Exodus, Atomic Wallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Step 2 – Find an Decred Exchange
Buy Decred through Binance
- Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
Buy Decred through Okex
- OKX (Chinese: 欧易), formerly known as OKEx, is a Seychelles-based cryptocurrency exchange and derivatives exchange. It was founded by Star Xu (徐明星) in 2017. OKX is owned by Ok Group, which also owns crypto exchange Okcoin. It is not available to US based investors. The company’s CEO is Jay Hao and CMO is Haider Rafique. Initially headquartered in Beijing, China, OKX is now under a blanket ban by Chinese regulators. On October 13, 2021, it issued a “Notice on Regulatory Policy in Mainland China”, announcing that it would continue its policy of “withdrawing from the Chinese mainland market” and would not establish an office or team in the region. However, according to Caixin, although the exchange officially announced that it would no longer set up an office in Mainland China, it still has a large number of R&D staff working in the region, including engineers, who continue to work for OKX in the form of third-party outsourcing companies.
Buy Decred through Gate.io
- Gate.io is a crypto exchange founded in the fall of 2017. The platform is a part of Gate Technology Inc corporation, and has a registration address in Virginia, USA. The platform does not have an official license. Its interface is available for working in three versions: English, Chinese and Japanese.
Buy Decred through Bybit
- The exchange prides itself on delivering multilingual online support to its customers and is committed to providing a transparent and efficient trading experience. The products on the platform include BTC/USD, ETH/USD, LTC/USD, and XRP/USD perpetual contracts. A perpetual contract resembles a traditional futures contract in many ways. Its main difference, however, is that it doesn’t have an expiry date. Hence, traders are allowed to hold their positions for as long as they need to.
Moreover, the exchange boasts a 100,000 TPS state-of-the-art matching engine. While many of its competitors have suffered from repeated overload problems, this high-performance matching engine makes it possible for Bybit to stand above the competition.The Bybit cryptocurrency broker platform is operated by the Bybit Fintech Limited which is registered on the British Virgin Islands, with headquarters in Singapore. The company was launched in March 2018, making it a fairly young player on the market.
Buy Decred through Kucoin
- Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.
Step 3 – Withdraw Your Decred
Once you decide on an exchange, open an account and buy your Decred . Make sure to withdraw the Decred from the exchange to your personal wallet. Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past) and always double check address before send coins because you can send the coins to wrong address .
Overview
What Makes Decred Unique?
Decred is a cryptocurrency that emphasizes the importance of community governance and decision-making. Unlike other cryptocurrencies that are controlled by a small group of individuals, Decred is designed to be decentralized and transparent, giving stakeholders a say in the decision-making process. Decred uses a unique hybrid consensus system that combines proof-of-work and proof-of-stake to achieve a balance between security and decentralization. This means that the Decred network is more resistant to attacks and more resilient to changes in the market, making it a reliable and stable cryptocurrency. Additionally, Decred has a strong focus on privacy and security, with features such as the ability to perform private transactions and the use of the lightning network for faster and more secure transactions. These features make Decred a unique and innovative cryptocurrency that is worth considering for those interested in investing in the space.
Decred is an innovative project because it bets on blockchain technology’s decentralized nature to prevent monopoly over voting status in the project itself. One of the main goals of the Decred protocol is to ensure that all DCR holders have the same amount of decision-making power and that large institutions cannot swing the votes in their favor.
By introducing ticket-holder voting, Decred ensures that people who have enough DCR will have the opportunity to participate in votes regarding the company/token’s future and operations. Decred also created a dedicated voting platform called Politeia, which allows users to participate in votes, submit proposals and start discussions.
Not only that, but to ensure those voting rights, Decred is employing a hybrid consensus mechanism, which combines both the proof-of-work (PoW) and proof-of-stake model (PoS).
How Many Decred (DCR) Coins Are There in Circulation?
Decred plans to issue a total of 21,000,000 tokens. Currently, about 60% of these tokens have entered circulation.
Of the 21 million tokens, 8% were mined before the launch of the protocol. Half of these pre-mined coins went towards an initial airdrop, while the other half was distributed to cover costs acquired by Company 0 during the development of the protocol.
The initial airdrop was designed to reward interested parties by giving them free Decred (DCR) tokens. Tokens were distributed among participants who had registered for the airdrop event beforehand.
How Is the Decred Network Secured?
Decred uses a hybrid PoW/PoS consensus mechanism, which combines features of the two most popular consensus models. The cryptocurrency uses proof-of-work (PoW) to mine new blocks on the blockchain; however, miners receive only 10% of the reward after a successful mining operation.
The proof-of-stake (PoS) consensus is used in the voting organization, and it allows users to participate in the ticket-holder voting system. Voters employing the PoS consensus receive 80% of the block reward.
The remaining 10% of block rewards are stored in the Decred Treasury. Decred hosts frequent Politeia discussions and votes on how the funds from the Decred Treasury should be spent.