Cryptocurrency is no doubt a complicated purview, involving many interrelated elements. These blocks of interrelated elements are complex enough within themselves inturn, both first in terms of conceptuality and then in terms of application. However, the benefits of trading in cryptocurrency are so alluring that more and more people are venturing into this, while the statisticians and analysts are coming up with newer models that can help make better sense out of the total picture.
One such cryptocurrency, which is also used as a governance token, is the “Maker” abbreviated as MKR. Now this Maker currency works on the idea that project Maker initiated, and uses Ethereum as its platform.Decentralized digital assets are created, which are then correlated with the value of some real instrument, such as gold, silver etc.
Making of the Maker
Maker tokens were launched by MakerDAO in August 2015. The objective of minimizing the volatility in the price of the hard-currency DAI (stablecoin), from Etheruem with respect to the U.S. Dollar backed this creation. So as the demand for DAI increases, so does the price for the Maker coins. Another factor that regulates the price of the Maker is how well it is able to regulate the stability of DAI. One difference between Maker and other cryptos is that Maker cannot be mined, it has to be purchased over an exchange. Makers inherently work on the principle of margin trading.
How it Works
The DAI stablecoin is pegged to the U.S. Dollar, so that the value of one DAI stablecoin is equal to one U.S. Dollar. The advantage is offering investors a chance to trade in cryptocurrency with the help of DAI, which gives a fluidity equal to other fiat currencies, but requires lesser regulations and restrictions. Unlike other stablecoins, DAI does not need a middleman to hold some bank security for the circulated DAI. Instead, it relies on Maker Coins. The online nodes of all those people who own Maker coins, create “Maker Smart Contracts” which then stabilizes the DAI. This puts DAI in sync with U.S. Dollars, and also rewards Maker token holders for their automatic participation.
Go For It
If you are into trading in cryptocurrency, in any form, then it is better to go for Maker and DAI. While you will get the flexibility of the traditional Fiat, you will not have to hassle yourself with the stringent rules and regulations involved. You will also be rewarded each time the DAI stabilizes itself against the U.S. Dollar. Maker tokens may seem a bit complex at first glance, however, they are simply your task of trading entirely.
A crucial factor in gaining in cryptos is the time and speed of transactions. With Maker tokens, you can improve both. Check out platforms like executium.com, who allow you for all these options, besides easy Bitcoin arbitrage, cryptocurrency betting, options funding, arbitrage funding, accurate and reliable trading signals etc. At executium.com you can even consult specialists to understand the ins and outs of Maker tokens and make the best of them.