Buying, storing, and trading Maker (MKR) cryptocurrency in Canada is quick and easy with Coinsquare, one of the leading cryptocurrency platforms in Canada.
Maker is a crypto that has gained popularity in decentralized finance (DeFi) in recent years. It’s the native ERC-20 token of the Maker Protocol. But what is the Maker crypto, and how does it work? The Maker crypto coin (MKR) acts as a governance token to allow holders to vote on the Maker protocol’s development and proposals affecting the use of Dai. Maker is one of the largest decentralized applications (dApps) that operates on the Ethereum blockchain.
The Maker network went through different stages; the initial stage was the MakerDAO. It was created in 2014 by a group of developers led by Rune Christensen, and Dai was officially launched on the Ethereum network in 2017. When MakerDAO was launched, they had 1 million MKR tokens. Right now, as of August 2024, there are about 902,000 MKR tokens in circulation, valued at over 2.1 billion USD. However, the total number of Maker tokens and their worth can change based on market conditions.
At its core, Maker is a decentralized finance project also known as the Multi-Collateral Dai (MCD) system. One of Maker’s key features is that it can generate new Dai tokens through smart contracts called Maker Vaults. Dai is a stablecoin that pegs to maintain a 1:1 ratio with the USD price. Initially, users can only collateralize ETH tokens. However, when the MCD systems were implemented, users can deposit any Ethereum-based assets approved by the community.
Maker is working towards getting more people to use its stablecoin, Dai, in different industries and products outside DeFi. This includes areas like charities, gaming, prediction markets, and international business trade. Maker is one of the few projects that is actually delivering on its promises of real-world usefulness and innovation.
After an Ethereum-based crypto token is accepted as collateral for the Maker Vaults, the community needs to choose certain guidelines for its risk. These guidelines depend on the token’s risk profile and include factors such as:
If the value of cryptocurrencies held in a Maker Vault smart contract suddenly falls, they might not be worth enough to back the stablecoin created. Thus, MakerDAO may sell the MKR tokens to compensate for the losses.
The stability of Dai is maintained through a mechanism called the Dai Savings Rate (DSR) and the Stability Fee. The DSR is a variable interest rate paid to Dai holders for holding the stablecoin, while the Stability Fee is an interest rate charged to users for generating Dai. The collateralization ratio is set at 150%, meaning users must lock up at least USD 150 worth of ETH to generate USD 100 worth of Dai. MKR token holders adjust these rates through voting to ensure the stability of the system.
When users generate Dai, they also create MKR tokens to pay the Stability Fee. These tokens are burned when the Stability Fee is paid, reducing the total supply of MKR in circulation and increasing Maker price. This helps to maintain the value of MKR and incentivizes users to participate in the Maker ecosystem’s governance. Additionally, MKR holders earn rewards by contributing to the development of the Maker system.
The decentralized nature of Maker and its governance model have attracted a growing community of developers, traders, and users who believe in the potential of DeFi. Maker has become one of the leading projects in the space, with a market capitalization of over USD 2 billion. Its success has inspired other projects to explore new ways of creating decentralized financial products and services.
The Maker price is based on various factors, such as project developments, market sentiment, the flow of crypto exchanges, and its utility as a token for governing decentralized finance (DeFi). Although the Maker crypto doesn’t pay dividends, its value is expected to increase in line with the success of Dai.
Yes, you abMKRutely can purchase Maker in Canada. You can buy it through a cryptocurrency trading platform like Coinsquare, where all your crypto purchases are quick and uncomplicated. Open an account today to discover how easy it can be to own Maker coins in as little as a few minutes.
There are many other Canadian and international cryptocurrency platforms where you can purchase Maker and participate in other crypto-based activities like staking. Many international platforms support transactions in Canadian dollars, but be sure to verify this before registering with them. Look for a platform that’s accessible for someone with your level of experience. The platform you choose to buy Maker should also feature robust security and exceptional customer support.
Another way to buy Maker is through a P2P platform. P2P platforms enable direct buying, selling, and trading of digital assets like Maker without banks or centralized platforms. They offer greater privacy and control over your funds compared to centralized platforms and typically have fewer expenses for things like overhead, which means lower fees for users. However, P2P transactions can be slower and more complex. Using a P2P platform to buy Maker requires time to learn the process and involves more manual effort, potentially prolonging each transaction.
Yes, as long as you do your due diligence on the platform you’re using for trading. Verify that the platform has a good reputation and has been in business for a reasonable amount of time. They won’t have as long a track record as a lot of companies because trading in crypto is still fairly new and because there are lots of mergers and acquisitions in the crypto space, but they should have a traceable history and positive reviews.
Any platform you choose should use normal security measures like two-factor authentication (2FA) and strong encryption such as SSL (Secure Socket Layer) to protect your data.
Remember that online safety is also partly up to you. Never share your passwords with anyone or record them somewhere where they can be easily uncovered. Don’t do Maker transactions while on public WiFi networks, change your passwords often, and always use strong passwords. Be vigilant about doing your part to secure your own account.
You can buy Maker and many other popular cryptocurrencies like SHIB, BTC, XRP, DOGE, LTC and more directly from Coinsquare’s secure, trusted trading platform.
The process is quick and easy. Sign up for an account and start your purchase by following these steps:
The increasing popularity of cryptocurrencies means that you can use them in more and more ways. Many retailers now accept Maker for online and even in-store purchases. In fact, money is transferred all over the world via various blockchains, including the Maker blockchain; opening the door to possibilities that might not otherwise exist.
You can use Maker to trade for other cryptocurrencies. Coinsquare customers can make trades directly from the platform. If you’re a beginner, access all the information you can about Maker and other cryptocurrencies before you get heavily into trading.
Go through the information available on Coinsquare’s website, which features many helpful explainers and blogs, as well as a real-time news feed about what’s going on with Maker and other currencies in the crypto space. There are many other sources for information about what’s new and exciting for Maker, such as:
As a cryptocurrency trading platform, we understand that you're curious about the potential for Maker's value to increase. It's important to note that the value of any cryptocurrency, including Maker, can be influenced by a wide range of factors such as market demand, technological developments, regulatory news, and broader economic conditions.
While historical performance and current trends can provide some context, past performance is not representative of future results. We recommend staying informed through reliable sources, considering a diversified approach to your investments, and only invest according to your risk tolerance.
Always make sure to do your own research and consider seeking advice from financial professionals before making any trading decisions.
Maker holdings are normally stored in special software applications called wallets. They can be divided into hot wallets and cold wallets. Due to their complementary functions, most investors use a combination of hot and cold wallets for their Maker holdings.
Hot wallets are digital applications used to store cryptocurrencies like Maker. Hot wallets are connected to the internet, making them easily accessible for transactions. These wallets are commonly used for everyday trading and transfers due to their convenience and ease of moving funds in and out of them.
Storing Maker in a hot wallet makes it quick and easy to access for trading and spending. Hot wallets usually have a user-friendly interface that makes them intuitive to use and suitable for people with limited experience in the crypto space. Hot wallets allow quick and easy access to your Maker for trading and spending.
The downside to hot wallets is that being online, they are more vulnerable to hacking, phishing and other types of interference. Some hot wallets are also custodial, meaning that a third party holds your private keys; this can pose a security risk in the event of a data breach.
Cold wallets are physical devices or offline storage MKRutions you can use to store Maker and other cryptocurrencies.
Unlike hot wallets, cold wallets are not connected to the internet, meaning that they are less vulnerable to hacking, phishing, and malware. This enhanced security prompts many investors to hold most of their Maker in cold wallets. Cold wallets also allow you to maintain control of your private keys.
Cold wallets are not as convenient as hot wallets for daily transactions; your Maker holdings need to be moved to a hot wallet for you to use to purchase goods or make trades. It is also possible to lose or misplace your cold wallets since they are physical assets. It’s crucial to have a backup of your wallets in a secure offline location in case you do lose them.
To open an account on a cryptocurrency platform in Canada, investors usually have to provide their full name, date of birth, current address, phone number, and e-mail address. They also have to scan and upload a government-issued ID such as a driver’s license and sometimes provide proof of address using a utility bill, bank statement, or a similar document that shows their full address. A selfie or photo is often required to match them to their government-issued identification.
Providing these details protects the investor and also ensures the security and legitimacy of Maker transactions on the cryptocurrency trading platform. Providing this personal information enables the platform to comply with regulatory standards.
The process of collecting personal information is known as Know Your Customer (KYC). KYC helps prevent illegal activities like money laundering, fraud, and terrorist financing. This is a regulatory requirement that Canadian registered marketplaces for crypto assets, like Coinsquare, must adhere to.
Although it may seem onerous and invasive to provide such personal information, you should be wary of any cryptocurrency trading platform that does not ask for this information when you open an account. Failure to conduct proper KYC procedures is an indication that the platform isn’t complying with industry standards or Canadian law.
Opening a Coinsquare account to buy Maker is very simple. Click on the Get Started button on our main Canadian webpage or downloading the Coinsquare app and enter the information as requested. Once your account is set up, you will need to fund it, which you can do directly from your bank via Interac e-transfer. Be sure to review the limits and other notes regarding funding your account with Canadian Dollars.
When you make your first deposit, there is a brief waiting period before your funds become available for investment, but after that, you’ll have access near instantly but can sometimes take up to 30 minutes of completing a transfer.
If you are using digital currency to make your initial deposit, the procedure is slightly different but still quick and convenient. If you have any issues making deposits, access the support documentation from our main page. If you can’t find the answers to your questions there, our Customer Success team is available 24/7.
Coinsquare is a leading cryptocurrency trading platform founded by Canadians for Canadians. We’re excited to welcome you to the ever-growing cryptocurrency world!
