How to Buy Maker in the UK – Beginner’s Guide
If you’re interested in diving into the world of cryptocurrencies beyond Bitcoin, Maker (MKR) is a promising choice. Maker is a decentralized autonomous organization (DAO) that governs the stablecoin DAI. In this guide, we’ll outline steps to purchase Maker in the UK, catering to beginners looking to invest in cryptocurrencies beyond Bitcoin. Before we delve into Maker, it’s essential to grasp the basics of acquiring Bitcoin, as it forms a foundational step in your cryptocurrency journey.
Acquiring Bitcoin: A Fundamental Step
Bitcoin is often considered the gateway to the cryptocurrency realm. To invest in cryptocurrencies or explore other digital assets like Maker, you first need to acquire Bitcoin. Here are the steps to buy Bitcoin:
Research and Choose a Platform
Research reputable cryptocurrency platforms that allow you to buy Maker online. Ensure the platform is user-friendly, secure, and complies with UK regulations.
Sign Up and Verify Your Account
Create an account on the chosen platform and complete the necessary identity verification processes. This often involves providing identification documents.
Deposit funds into your account using various payment options supported by the platform, such as bank transfers, credit/debit cards, or other payment methods.
Place Your Order
Navigate to the platform’s trading section, specify the amount of Bitcoin you wish to purchase, and place your order.
Securely Store Your Bitcoin
After purchasing Bitcoin, transfer it to a secure cryptocurrency wallet for safekeeping. Hardware wallets or secure software wallets are popular options.
Transitioning to Maker: Purchasing MKR in the UK
Now that you have Bitcoin, you can proceed to buy Maker (MKR) in the UK. Follow these steps to make your transition:
Choose a Cryptocurrency Exchange
Select a reputable cryptocurrency exchange that supports Maker (MKR) and operates in the UK. Ensure the exchange complies with regulations and offers a secure trading environment.
Create an Account and Verify Your Identity
Sign up for an account on the chosen exchange and complete the necessary identity verification processes.
If the exchange allows direct conversion from Bitcoin to Maker, deposit the desired amount of Bitcoin into your exchange wallet.
Trade Bitcoin for Maker (MKR)
Navigate to the trading section of the platform, locate the Bitcoin to Maker (MKR) trading pair, and place your order to exchange your Bitcoin for Maker.
Withdraw Your Maker (MKR)
Once the trade is complete, withdraw your Maker (MKR) tokens to a secure cryptocurrency wallet of your choice.
Best Sites to Buy Bitcoin and Maker
When considering where to buy Bitcoin and Maker, here are some reputable platforms known for their reliability and user-friendliness:
Best Sites to Buy Bitcoin:
Coinbase: A user-friendly platform suitable for beginners, offering a simple interface to buy, sell, and manage Bitcoin.
Binance: Known for its global presence and variety of cryptocurrencies, Binance provides a seamless process to purchase Bitcoin.
Kraken: A well-established platform offering a range of cryptocurrencies and a secure environment for buying Bitcoin.
Best Sites to Buy Maker (MKR):
Binance: As a prominent cryptocurrency exchange, Binance provides a platform to trade Bitcoin for Maker (MKR) easily.
KuCoin: Another popular exchange where you can trade Bitcoin for Maker (MKR) with a straightforward process.
Uniswap: A decentralized exchange (DEX) known for its accessibility and ability to swap various cryptocurrencies, including Maker (MKR).
Understanding Maker (MKR): More Than Just a Cryptocurrency
Now that we have covered the fundamental steps of acquiring Bitcoin and transitioning to Maker (MKR), it’s crucial to understand what Maker is and why it’s worth considering as an investment.
What is Maker (MKR)?
Maker is a decentralized autonomous organization (DAO) built on the Ethereum blockchain. Its primary objective is to govern the stablecoin DAI, which aims to maintain a value pegged to the US dollar. MKR is the native utility and governance token of the MakerDAO ecosystem.
Why Invest in Maker (MKR)?
Governance Rights: MKR holders have governance rights within the MakerDAO ecosystem. This means they can propose and vote on changes, upgrades, and improvements to the protocol.
Stability and Decentralization: MakerDAO is a decentralized system that aims to create stability in the volatile world of cryptocurrencies by governing DAI’s value.
Collateral Backing: MKR serves as collateral for DAI. If the value of DAI drops below $1, MKR holders may be diluted to cover the debt and stabilize DAI’s value.
Potential for Growth: Like many cryptocurrencies, MKR has the potential for price appreciation as the adoption and use of the MakerDAO ecosystem increase.
Buying Maker (MKR) in the UK: Step by Step
Now, let’s delve into the detailed process of buying Maker (MKR) in the UK:
Choose a Reputable Exchange
Select a reliable cryptocurrency exchange that supports Maker (MKR) transactions and operates in the UK. Research the exchange’s reputation, security features, fees, and available trading pairs.
Sign Up and Verify Your Identity
Create an account on the chosen exchange and complete the required identity verification. This typically involves submitting identification documents to comply with regulatory standards.
Deposit Funds or Bitcoin
Depending on the exchange, you’ll either deposit funds directly (using GBP or other fiat currencies) or transfer Bitcoin from your Bitcoin wallet to the exchange.
Locate the MKR Trading Pair
Navigate to the trading section of the exchange and find the MKR trading pair. It’s common to trade Bitcoin for MKR, so locate the BTC/MKR trading pair.
Place Your Order
Specify the amount of MKR you want to purchase and place your order. You can choose between market orders (immediate purchase at the current market price) or limit orders (purchase at a specific price or better).
Securely Store Your MKR
After the transaction is complete, withdraw your MKR tokens to a secure cryptocurrency wallet, preferably a hardware wallet for enhanced security.
Invest in cryptocurrencies like Maker (MKR) requires careful consideration and understanding of the underlying technology and the associated risks. While acquiring Bitcoin is often the first step, exploring and diversifying into other promising cryptocurrencies like Maker can potentially enhance your investment portfolio. Always conduct thorough research and due diligence before investing, and prioritize security by using reputable exchanges and secure wallets. Happy investing!