How to Buy Maker (MKR)

Beginner’s Guide

What Is Maker (MKR)?

Maker (MKR) is the governance token of the MakerDAO and Maker Protocol — respectively a decentralized organization and a software platform, both based on the Ethereum blockchain — that allows users to issue and manage the DAI stablecoin.

Initially conceived in 2015 and fully launched in December 2017, Maker is a project whose task is to operate DAI, a community-managed decentralized cryptocurrency with a stable value soft-pegged to the US dollar.

MKR tokens act as a kind of voting share for the organization that manages DAI; while they do not pay dividends to their holders, they do give the holders voting rights over the development of Maker Protocol and are expected to appreciate in value in accordance with the success of DAI itself.

The Maker ecosystem is one of the earliest projects on the decentralized finance (DeFi) scene: the industry that seeks to build decentralized financial products on top of smart-contract-enabled blockchains, such as Ethereum.

How to Buy Maker Summary

Get a Maker wallet (e.g. Ledger, Trezor , Exodus, Guarda, AtomicWallet)
Find an exchange that sells Maker (e.g. Crypto.com, Binance , Coinbase , Bitfinex , Kucoin)
Deposit money and make the trade
Withdraw the Maker to your wallet

Buying Maker in 3 Simple Steps

Desctop & Mobile

Maker Hardware Wallets

Maker (MKR) is an Ethereum-based cryptocurrency and can be stored on any Ethereum-compatible hardware wallet. Some popular hardware wallets that support Ethereum and therefore Maker include:

Ledger Nano S: This is a popular and affordable hardware wallet that supports a wide range of cryptocurrencies, including Maker. The Ledger Nano S uses a secure element to protect private keys and requires a PIN code to access funds.
Ledger Nano X: This is a newer and more advanced version of the Ledger Nano S, with more storage capacity and a Bluetooth connection. The Ledger Nano X also supports Maker and other Ethereum-based cryptocurrencies.
Trezor Model T: This is a high-end hardware wallet that supports a wide range of cryptocurrencies, including Maker. The Trezor Model T uses a touchscreen interface and requires a PIN code to access funds.
KeepKey: This is another popular hardware wallet that supports a wide range of cryptocurrencies, including Maker. The KeepKey has a large display screen and a simple user interface for easy use.
Ellipal Titan: This is a newer hardware wallet that supports a wide range of cryptocurrencies, including Maker. The Ellipal Titan is a cold storage wallet, meaning it is not connected to the internet, and uses a QR code to facilitate transactions.

When using a hardware wallet to store Maker, it is important to follow best security practices, such as keeping your recovery phrase safe and secure, and ensuring that your hardware wallet is purchased from a reputable source.

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.

Maker Software Wallets

As a cryptocurrency based on the Ethereum blockchain, Maker (MKR) can be stored in any Ethereum-compatible software wallet. Here are some popular software wallets that support Maker:

MyEtherWallet (MEW): This is a free, open-source wallet that allows you to store and manage your Maker and other Ethereum-based assets. MEW offers a user-friendly interface and supports multiple wallet formats, including hardware wallets.
MetaMask: This is a popular browser extension wallet that allows you to store and manage your Maker and other Ethereum-based assets. MetaMask can be easily installed as an extension in your browser and is easy to use.
Trust Wallet: This is a mobile wallet that supports a wide range of cryptocurrencies, including Maker. Trust Wallet offers a user-friendly interface and allows you to store and manage your cryptocurrencies securely.
Exodus: This is a multi-currency desktop wallet that supports Maker and other popular cryptocurrencies. Exodus offers a user-friendly interface and allows you to manage your portfolio with ease.
Atomic Wallet: This is a multi-currency desktop and mobile wallet that supports Maker and other popular cryptocurrencies. Atomic Wallet offers a user-friendly interface and allows you to store and manage your cryptocurrencies securely.

It is important to note that when using a software wallet to store Maker, you should take appropriate security measures, such as using strong passwords, enabling two-factor authentication, and backing up your recovery phrase.

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.

Payment methods:

Credit/debit card

Buy Maker through Crypto.com

Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos. The company was initially founded in Hong Kong by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in 2016 as “Monaco”. In 2018, the company was renamed as Crypto.com following a purchase of a domain owned by cryptography researcher and professor Matt Blaze. Domain sellers valued the domain at US$5–10 million.

Buy Maker 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 Maker through Coinbase

Coinbase is a convenient and cheap way to buy Ethereum and the platform is open to 200+ countries). Coinbase will sell you CRO for a variable fee that depends on your payment method (credit cards have a higher fee than wire transfers), order size and market volatility. Here’s how you buy Ethereum on Coinbase: Open a Coinbase account Add your payment method (Credit card or bank account) Go to “Buy/Sell” and select the amount of Ethereum you desire Click “Buy Cronos”

Buy Maker through Bitfinex

Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc registered in the British Virgin Islands.Their customers’ money has been stolen or lost in several incidents, and they have been unable to secure normal banking relationships. Bitfinex was founded in December 2012 as a peer-to-peer Bitcoin exchange, offering digital asset trading services to users around the world. Bitfinex initially started as a P2P margin lending platform for Bitcoin and later added support for more cryptocurrencies.

Buy Maker 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 Maker (MKR)

Once you decide on an exchange, open an account and buy your Maker. Make sure to withdraw the Maker 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

Who Are the Founders of Maker?

Maker is a decentralized autonomous organization (DAO) built on the Ethereum blockchain, and as such, it doesn’t have a traditional founding team or CEO. However, the MakerDAO project was created in 2015 by Rune Christensen, a Danish entrepreneur and software developer. Christensen had previously co-founded Try China, a social network for Chinese language learners, and had worked on various blockchain-related projects before starting MakerDAO.

Christensen remains a prominent figure in the Maker community, and his work on MakerDAO has earned him recognition as a leading innovator in the blockchain industry. The MakerDAO project has grown significantly since its inception, and it is now maintained by a global community of developers, investors, and enthusiasts who work to improve the protocol and build new applications on top of it. The MakerDAO project is governed by MKR token holders, who have the power to vote on changes to the protocol and the direction of the project.

What Makes Maker Unique?

Maker is a unique cryptocurrency project because it is designed to be a decentralized stablecoin platform, which offers a number of benefits and features that set it apart from other cryptocurrencies. Here are some of the key features that make Maker unique:

Decentralized stablecoin: Maker is designed to be a stablecoin, meaning it maintains a stable value relative to a certain asset, such as the US dollar. This makes it less volatile than many other cryptocurrencies, which can experience significant price fluctuations. Maker achieves this stability through its Dai stablecoin, which is pegged to the US dollar and backed by a diverse range of cryptocurrencies held in smart contracts.
Decentralized autonomous organization: Maker is governed by a decentralized autonomous organization (DAO), which means that it is controlled by its users rather than a central authority. MKR token holders have the power to vote on changes to the protocol and the direction of the project.
Collateralized debt position (CDP): Maker’s stablecoin, Dai, is created through a process called a collateralized debt position (CDP), which allows users to lock up their cryptocurrency as collateral in order to generate new Dai tokens. This allows users to access liquidity without having to sell their cryptocurrency, which can be beneficial during times of market volatility.
Interoperability: Maker is built on the Ethereum blockchain, which means that it can be easily integrated with other Ethereum-based applications and protocols. This interoperability allows developers to build new applications on top of the Maker platform, creating a diverse ecosystem of decentralized finance (DeFi) applications.

Overall, Maker’s unique combination of stability, decentralization, and interoperability make it an attractive option for those looking to participate in the emerging world of decentralized finance.

How Many Maker [MKR] Coins Are There in Circulation?

The issuance and removal of MKR from the system is governed by a complex system of interdependent mechanisms designed to ensure that DAI is always fully collateralized by other cryptocurrency assets and its soft peg to the USD is maintained. There is no hard-coded limit on the total supply of MKR.

DAI’s value is secured by collateral — other cryptocurrencies that are deposited by users when minting new DAI tokens and stored in so-called vaults — smart contracts on the Ethereum blockchain.

During price downswings, the value of crypto stored in the vault might become insufficient to fully collateralize the corresponding amount of DAI. In that case, the Maker Protocol automatically initiates the liquidation of the vault’s contents, the proceeds of which it uses to cover that vault’s obligations. If the amount of DAI generated during the liquidation is not enough, the Maker Protocol mints new MKR tokens to sell and cover the remaining sum, thereby increasing the total supply.

However, in some cases, the amount of DAI made from the auctions exceeds the necessary limit to ensure full collateralizations — then, it is used by the Maker Protocol to buy back and burn MKR tokens, decreasing their total supply.

Thus, the supply of MKR is a dynamic value that changes depending on market conditions and the overall health of the DAI ecosystem. As of October 2020, the circulating supply of Maker tokens is about 1 million, worth more than $500 million.

How Is the Maker Network Secured?

The Maker network is secured by the Ethereum blockchain, which uses a consensus mechanism called Proof of Stake (PoS) to validate transactions and add new blocks to the blockchain. However, the Maker network itself does not use PoS, as it is a decentralized autonomous organization (DAO) built on top of the Ethereum blockchain.

Instead, the Maker network uses a system of collateralized debt positions (CDPs) to maintain the stability of its stablecoin, Dai. When a user wants to create new Dai tokens, they must first deposit a certain amount of collateral (usually Ether) into a smart contract called a CDP. This collateral is held in escrow and used to back the new Dai tokens that are created. If the value of the collateral falls below a certain threshold, the CDP is automatically liquidated, and the collateral is sold to cover the outstanding Dai debt.

The Maker network is also secured by the MKR token, which is used to govern the platform and make decisions about its future direction. MKR token holders have the power to vote on changes to the protocol, such as adjustments to the stability fee (the interest rate charged on Dai loans) and changes to the collateralization ratio (the ratio of collateral to debt in a CDP).

In addition to these measures, the Maker network is also audited regularly by independent third-party firms to ensure the security and integrity of the protocol. Overall, the combination of collateralized debt positions, MKR token governance, and third-party audits helps to ensure the security and stability of the Maker network.