How to Buy Maker - Beginner’s Guide
Buying Maker (MKR): A Step-by-Step Guide
Are you interested in buying Maker, but not too sure where to begin? You’re not alone. The Maker coin is a hugely popular cryptocurrency to buy. But, for beginners, this can be quite intimidating.
You may have heard about the Maker Protocol, but are yet to financially involve yourself with the project. This is possible, especially if you're looking to understand the process of buying the token. Subsequently, we will give you a quick and easy-to-digest rundown of the coin and how to buy it.
Rune Christensen and a team of developers founded the Maker Protocol in 2015, and two years later, they raised about $12 million from the sales of its governance currency, the MKR token.
Maker is one of the renowned protocols built on the Ethereum blockchain. The Maker Protocol allows for a range of utilities such as creating currencies and collateralizing Ethereum in return for loans.
If you are looking to buy the Maker Protocol's governance token, MKR, then you will benefit highly from reading this guide. You will learn all the essential factors like trading practices, features to look out for in brokers, and of course, an in-depth guide on how to buy Maker.
- How to Buy Maker in 5 Steps
- Step 1: Choose an Online Maker Broker or Exchange
- Step 2: Come up With a Maker Investment Plan
- Step 3: Open a Maker Broker Account
- Step 4: Deposit Some Funds
- Step 5: Set up a Maker Protocol Order
- Step 6: Storing Your Maker Coins
- Other Ways to Buy Maker in 2021
- How to Buy Maker 2021 - The Verdict
How to Buy Maker in 5 Steps
To buy Maker, you will need to find a cryptocurrency trading platform that gives you access to this digital asset.
In short, here is how you can proceed:
- Step 1: Choose a cryptocurrency exchange site, preferably a regulated broker.
- Step 2: Register with your online crypto broker
- Step 3: Fund your brokerage account to buy Maker.
- Step 4: Choose Maker from the list of supported cryptocurrencies.
- Step 5: Enter how many MKR tokens you want to purchase, and confirm your order.
If this is your first time buying cryptocurrencies like maker, not to worry - we explain each of the steps in detail below.
Step 1: Choose an Online Maker Broker or Exchange
One of the important steps in learning how to buy Maker tokens is choosing the right online broker. This is a process you should take seriously, as finding a credible broker can be challenging.
As such, we will provide a few criteria you may look out for when searching for a broker. These factors will help you make the right choice when learning how to buy Maker.
Opting for a regulated broker is a safe way to buy Maker tokens in 2021. Regulated brokers are audited by established financial authorities. Owing to this, the credibility of such brokers is often ensured as a safe place to buy your Maker tokens. Therefore, it is essential to consider who regulates the broker you opt for.
If you are in the United States, it is best to choose a Maker broker that FINRA recognizes. You can check the FINRA website to see the brokers that it regulates. There are also other regulatory bodies such as the FCA, CySEC, or even ASIC, and you can rely on a broker audited by any of them.
Below, we will show you just how important it is to opt for a regulated broker.
- Regulatory bodies mandate brokers to have a system of secure frameworks for the protection of data and capital. Essentially, your Maker tokens will remain protected even in cases of a hack or system compromise.
- Most regulated brokers also avoid mixing their capital with yours, which is crucial because of unforeseen circumstances. Thus, they put your capital in a separate but secure and easily accessible account.
There are numerous benefits of buying your Maker tokens from a regulated broker, and the most important one is the security of your investment.
On the other hand, there are countless unregulated brokers in the industry. As such, they may be relatively easier to find than the regulated ones. However, while these unregulated brokers might be easy to find, there are certain things you need to note.
- You can trade your tokens against diverse cryptocurrencies and fiat money when you use an unregulated broker. However, you may be exposing yourself to some unscrupulous activities since the broker is unregulated.
- Maker holders can also access leverage trading with unregulated brokers. However, it is pretty tricky and attracts a high level of risk, particularly if you have little to no experience in that area. Leverage trading can make you sizable gains when things go right, but can also cause you to lose even more.
- When trading with a third-party or unregulated broker, you may need to move your tokens elsewhere after purchasing them. The transfer process is not always safe and may expose your Maker tokens to such things like hacks and even permanent losses resulting from misplacing your private keys.
- When creating an account with a regulated broker, you will be required to complete a Know Your Customer (KYC) process. This prevents anonymous trades as you will need to provide personal details and pictures of a government-approved identity card.
- On the other hand, unregulated brokers may not necessarily require the KYC process, which means anyone can create an account, buy Maker, and even trade the coin. This is a risk that can compromise your tokens.
You are at liberty to opt for an unregulated or regulated broker. However, it will be best to prioritize the safety of your Maker tokens, because once they are lost, it may be challenging to recover them afterward.
This is why a regulated broker like eToro might be a safer option. The platform is a credible Maker broker in the US. It is registered with FINRA and regulated by the FCA, CySEC, and ASIC. And the best part is that you can store your tokens with the broker through its in-built wallet.
While looking into how to buy Maker tokens, it is also best to check with your desired broker to find out if it supports your preferred payment method.
With most third-party exchanges or unregulated brokers, the only way to fund your account will be to use cryptocurrencies. This can pose challenges, especially if you are new to cryptocurrency trading and do not hold some tokens.
However, most regulated brokers support funding your account with various acceptable payment methods to buy Maker. For instance, you may choose to make a deposit into your account with a credit or debit card.
Alternatively, you may also choose to make a deposit using a PayPal, Skrill, or Apple Pay account.
A regulated broker like eToro allows you to fund your account with those payment methods, and even more. The option of paying with a conventional bank transfer is also very much available.
Commissions and Other Levied Fees
Fees and commissions are how cryptocurrency brokers profit from the services they offer. These charges vary from one broker to another.
Essentially, these fees may appear in the form of charges placed on each payment you make. On the other hand, they can also place commissions on each trade you execute.
Some of the factors that make fees and commissions vary from one broker to another include the payment method you opt for, your region, and Maker order size. For instance, if you reside in Europe and choose to trade with Coinbase, you will pay a fee of 1.49% on each trade you enter.
You may be wondering what effect this will have on each position you place. So, let’s contextualize:
- Let’s say you choose to create a $600 buy order for Maker.
- Coinbase, of course, charges you 1.49% on this trade, which means you will pay a fee of $8.94.
- A few months later, your Maker tokens have grown in value and thus - your portfolio is now worth $2,000.
- You will pay a fee of $29.80 ($2,000 x 1.49%) to sell the coins.
- So, for this trade, you have paid a total of $38.74 for buying and selling your Maker tokens.
Remember that there will always be a broker that is suitable for buying Maker. A perfect example is eToro - a heavily regulated broker that allows you to buy Maker tokens at 0% commission. It also offers low fees for each payment you make.
This is why you should always research adequately before choosing your desired broker.
Other Important Factors
By now, you already know the essential factors to look out for when choosing an excellent broker for buying Maker. However, there are other factors worthy of note, and we will explore them below.
To fully enjoy the benefits of a great broker, you may also want to consider the following:
- User Interface: Your convenience when buying Maker matters a lot. Therefore, your broker's user interface may impact not only your comprehension but also your trades. It can be pretty challenging trying to navigate a broker with unclear directions and inadequate prompts. You may even end up making the wrong trades and losing money. As such, when buying Maker, it is best to opt for a broker that offers clear instructions, symbols, and even icons that make trading easy.
- Minimum Investment: Most brokers charge commissions and fees, but that's not all you should note. We mentioned earlier that brokers often set a minimum investment requirement. Of course, this capital requirement varies from one platform to another. For example, some brokers accept a minimum of $5, while others may not permit less than $500. Hence, it will be best to find out your broker's minimum requirement before you sign up.
- Storage: Whether you intend to buy large or small quantities of Maker coins, you need to consider your wallet options. Your priority should be security, ease of access, and finally, user-friendliness. There are many available wallets, which might make it challenging to choose one. However, with regulated brokers, you most likely don’t have to worry about this, as most of them offer you an in-built wallet, for instance, eToro.
Read More: 5 Best Places to Buy and Sell Cryptocurrency
Step 2: Come up With a Maker Investment Plan
Choosing an investment plan is an important trading feat. Successful investors tend to create one and stick with it. Doing this helps with consistency and gives you a clear vision when buying Maker.
We have curated some strategies and considerations concerning Maker. You can leverage these to create a well-researched yet precise Maker investment plan.
Long-Term Prospects or Immediate Returns
As a cryptocurrency trader, you can opt for either long or short-term investment plans. Short-term trades entail entering the market for a little period and exiting once you have made your target profit. Typically, it happens within a day, hours, or even minutes.
However, if you enter the market without care and precision, you may incur a loss. As such, it is also best to choose a solid trading strategy suitable for your investment plan.
Alternatively, you may also choose to become a long-term Maker investor. This refers to when you decide to purchase and hold your Maker coins for a long period. Here, you may choose to keep your Maker coins for weeks, months, and even years.
There are investors who have held onto Maker for years and are not looking to sell soon; it’s all about your goals.
Target Maker Price
While learning how to buy Maker, it will also help to set a target price. This is equally as important as creating an investment plan because it helps you trade consistently.
Setting a target price also prevents you from making impulsive entries into the market, thereby safeguarding your capital and portfolio.
Now, we will show you a simplified example of what it means to set a target Maker price.
- Let’s say you choose to buy Maker when it is priced at $3,300.
- You have an investment goal of 30% profit on all your trades.
- Meaning before you can sell your Maker, it, therefore, has to attain a price of $4,290.
- You may also be looking to start small with a target profit of 10%, which means that Maker has to hit $3,630 before you can sell your coins.
Essentially, your purchasing plan depends entirely on you. You may choose a low-profit strategy to play on the safe side, or alternatively, you can aim for a high one. Either way, you will be playing safe if you stick with your trading and investment plan at all times.
Regardless, it is worthy of note that one Maker token is just over $3,400 in early August 2021. At the other end of the scale, the coin also has an all-time low of $21.
Summarily, this means that when buying Maker, you may opt for a long or short-term investment as they can both be profitable considering the coin’s trajectory.
Check Out: Hot Cryptocurrency Price Predictions
Buy Maker Regularly
One of the most profitable ways to enter the cryptocurrency market is through regular purchases. As such, buying Maker requires patience and consistency and is certainly not a get-rich-quick scheme or a game of chance.
You will need to follow a system of safe buying principles if you aim to make a profit.
For instance, you might want to consider entering the market at regular intervals with small amounts. Gradually, you might make your profit this way if you stick to it. Maker is like every other cryptocurrency; it has a volatile price.
As such, there are highs and lows, meaning the coin fluctuates constantly. You may choose to buy at short or lengthy timeframes. However, ensure that they are regular. You may also consider depositing a sizable capital at each interval.
Step 3: Open a Maker Broker Account
If you've been keeping up with our how to buy Maker guide, you should now be armed with sufficient knowledge on choosing the right broker. If that’s the case, you may follow these steps to open an account with the broker you have selected.
- Look up the website and create an account by signing up.
- A regulated broker like eToro will require you to provide personal details such as your name, phone number, address, and email.
- Your regulated broker will also require you to complete a KYC process, which takes less than a couple of minutes at eToro.
- Some brokers like eToro will even provide you with a free demo account that you can use to learn to buy Maker before delving into real-life cryptocurrency purchases.
The KYC process involves providing a legally approved means of identification. This could be your driver's license, passport, and proof of address.
After completing the process and verifying your identity, you can then execute all the Maker purchases you desire unrestricted!
Step 4: Deposit Some Funds
Irrespective of the broker you’ve chosen, you will need to deposit some funds. However, there may be a minimum deposit requirement. Hence, when choosing a broker, it is best to check if there’s such a minimum in place and thus - consider if that suits your investment plan.
If you’ll be proceeding to buy Maker, you have to fund your account. To that end, you may opt for the common methods of making online payments - either through an e-wallet or your credit/debit card.
On the other hand, you may also choose to transfer the funds directly from your bank, but it might take a while to get to your broker.
Step 5: Set up a Maker Protocol Order.
Learning how to buy Maker tokens is essential, but it is incomplete until you understand a market order and the types you can place.
Since you have funded your account, you can now place an order without delay. This is a way of showing your broker what position you intend to take in the market.
If you are familiar with cryptocurrency trading, you must have an idea of what an order is. However, if you are new to this, we have provided an explanation of all you need to know when learning how to buy Maker.
A buy order is a manual way of alerting your broker that you intend to enter the market, the price you desire, and the number of Maker coins you want.
If you’re using a broker, you will find yourself using the buy order often. For example, if you expect the price of Maker to appreciate, you use a buy order to purchase some in advance. This is what cryptocurrency enthusiasts refer to as going long.
Alternatively, you may also expect the price to depreciate. Here, you use a sell order to enter the market. Some also call this a short position. Note that not all brokers offer this particular service, and it is best to check with yours before you create an account with them.
However, if you are keen on both long and short positions, you may consider creating a cryptocurrency trading account with eToro; it supports both.
Limit or Market Order
A limit or market order tells your broker how you wish to buy Maker.
Here’s how a market order works.
- A market order is a service that all brokers offer. It allows you to enter the market the moment you place an order.
- Hence, you only use it when you are confident you are ready to purchase your Maker tokens.
- It also prevents you from missing your target price, as it purchases the coins immediately after you confirm your trade.
Here's an example of how it works.
Let's say Maker is currently trading at $3,486. You check your investment plan and you find the price suitable. You may decide to enter the market immediately, meaning the moment you confirm your trade, you will purchase Maker at $3,486.
Alternatively, a limit order allows you to enter the market at a price you choose. The price may be what you anticipate Maker to trade at in a few hours or even minutes.
- Here, you might instruct your broker to purchase your Maker coins when it hits a value of $4,000, even though it currently trades at $3,486.
- Then, you create a limit order for your desired $4,000.
- Your broker will purchase the coin for you when it hits the target of $4,000.
- However, if it never hits that price, your order will remain pending until you cancel it yourself.
Decide on Your Stake
Going further, you have to decide on the amount you want to use to buy your Maker coins. An essential part of your consistent trading plan involves choosing the amount you can afford to stake on each purchase.
As we established earlier, it is best to start with a relatively low amount before gradually deciding whether or not to increase this as you get more confident.
You should preferably start small because it helps you familiarize yourself with the market and what you’re in for. It is also a way of preventing large losses.
Lastly, you can confirm your order to receive the Maker coins. However, it will be best to go over your purchase to ensure there are no mistakes.
Then, you can complete the order and await your tokens within a few seconds.
Read Also: Why Maker Coin Is Going to Explode
Step 6: Storing Your Maker Coins
If you use a regulated broker, you may not need to look for secure storage for your Maker coins because you’ll be provided with one.
This option is not just safe, but also prevents you from becoming susceptible to security breaches that could arise during the process of transferring your coins to another wallet. This is one of the assurances eToro gives its users; your Maker coins enjoy top-notch security with the broker.
However, if you choose to trade with a third-party instead, you must be cautious when choosing a storage option. This is because after purchasing your Maker coins, you will have to transfer them to the cryptocurrency wallet you have chosen, and if you lose your private keys along the line, they may be lost forever.
Selling Maker Tokens
Depending on your investment plan, you may be looking to hold on to your Maker coins for a long or short period. However, you will eventually have to trade them off if you want to realize your profit. As such, you have to learn how to sell your coins.
Now, most regulated brokers will allow you to sell them for fiat money which you can withdraw to your bank. This is a seamless and swift method, and you can complete it on demand and within minutes of initiating the trade.
However, when you choose a third-party exchange, you may need to transfer your Maker coins back and forth each time you need to sell them. As we established earlier, this is a dangerous trading strategy as it can expose you to security breaches and dire losses.
Other Ways to Buy Maker in 2021
As it stands, there are numerous methods of buying Maker coins. The best part is that these methods are unrestricted, and you may opt for the one that best suits you.
Buy Maker Using Credit Card
Buying Maker with your credit card is one of the super-easy ways to purchase the coin. However, your credit card provider may charge you a cash advance fee of 3%. This, however, varies across providers, so you might still want to do your research.
Anyway, all you have to do is enter the number of Maker coins you want to purchase, type in your card details where necessary, and wait for your broker to complete the transaction.
Buy Maker Using Debit Card
Alternatively, you can use your debit card to buy Maker coins. Simply ascertain how much Maker you intend to buy, input your card details where they are required and await the tokens you just purchased.
You can also expect your broker to deposit your funds back to your debit card when you sell your Maker and cash out.
Buy Maker Using PayPal
PayPal is fast becoming the go-to payment method. Interestingly, it also applies to cryptocurrency investors, as you can also use a PayPal wallet to pay for your Maker coins.
However, not all brokers accept this as a payment method. As such, it is best to check first before creating an account with your desired platform. If PayPal is what you wish to use to buy Maker, eToro supports this alongside several other e-wallets.
Cryptocurrency ATMs are slightly different from conventional ones. Here, you put in some cash, purchase your tokens and get a receipt in return. You can then choose to transfer the coins you bought to a private cryptocurrency wallet of your choice.
Currently, cryptocurrency ATMs may not make provisions for Maker just yet. However, this might be a good thing because buying coins through these ATMs often come with a 20% charge.
How to Buy Maker 2021 - The Verdict
Now that you have read through our summarized and in-depth guide on how to buy Maker, we are confident you can now purchase the coin seamlessly.
Essentially, you can buy Maker coins with ease at eToro, and within a few minutes too. Best of all, eToro allows you to buy Maker at 0% commission and at a minimum investment of just $25!
eToro – Best Exchange to Buy Maker
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
Is Maker easy to buy?
It is pretty easy to buy Maker coins once you know where to look. All you need to do is find a credible and regulated broker and purchase your tokens. eToro is a great option in this respect.
Which is the safest method to buy Maker tokens?
The safest method to buy Maker coins is to go through a regulated broker. eToro, for example, is regulated by the FCA, CySEC, and ASIC. If you live in the US, eToro is registered with FINRA.
Can I invest in Maker for only $100?
Yes! You can invest just $100 in Maker tokens. However, you must first ensure that your broker’s minimum deposit does not exceed $100. This is why eToro is a great option as you can buy Maker from just $25.
Is it risky to buy Maker?
Maker coins are a risky investment, just like other cryptocurrencies. However, adequate research will go a long way in helping you hedge your risks. It also helps to buy in moderate but regular intervals.
What is the highest value that Maker has ever reached?
Maker has an all-time high of $6,339 - which it breached on 03 May 2021.