Investing in cryptocurrency has become quite popular in recent years, and even everyday traders and investors are using crypto assets like DAI to make a handsome return on their investments. DAI is an asset-backed cryptocurrency that strives to maintain a one-to-one ratio with the U.S. dollar. This is done through smart contracts or contracts that execute automatically once certain conditions have been met.

What Makes DAI Different?

DAI is not part of a for-profit operation. Instead, it relies on the open-source Maker Protocol. DAI runs on the Ethereum blockchain and is decentralized. Also, unlike other asset-backed cryptocurrencies, the collateral behind DAI does not consist of dollars held by a company. Instead, the collateral is made up of ether (ETH), the cryptocurrency used by Ethereum.

How much is DAI Worth?

Like all cryptocurrency assets, the value of DAI can change from day to day. To find out whether buying or selling DAI is a good move, you can check the current DAI price through an exchange.

Most crypto exchanges on the web use API technology to incorporate trading tickers on their sites. Using an API, an exchange can provide an up-to-the-minute DAI price as well as prices for other cryptocurrencies.

Is DAI a Good Investment?

DAI may be a good investment if you’re looking for an opportunity in crypto that has some security behind it. Asset-backed cryptocurrency assets tend to be safer bets because of the collateral that serves as their foundation. Of course, any type of trading and investing assumes a risk of loss, so you should not invest in any cryptocurrency without doing your homework first.

Additionally, DAI may be a good investment if you’re interested in a decentralized option. The decentralized, or DeFi, economy has gained steam as of late and now may be a good time to get involved. Then again, the technology and trading methods behind the DeFi movement are still largely unregulated, so the tax implications of holding a DeFi portfolio may hurt certain investors in the future.

Disclaimer: Before investing in cryptocurrency, speak with a financial advisor. This content is for informational purposes only.

Author Resource:-

Emily Clarke writes about portfolio management, finance tracking and Consumer SaaS services. You can find her thoughts at cryptocurrency tools blog.