Is Maker (MKR) a Good Investment?
The world of decentralized finance (DeFi) grows rapidly for the past month as market participants confirm their interest in various blockchain-based financial instruments. One such protocol that caters to this niche is Maker. So, is Maker (MKR) a good investment?
Important: For those who’re impatient, you can get MKR on Coinuma, but if you’re not very busy right now, you may read the whole article
Popularity and marketing are not everything when it comes to cryptocurrencies. To invest successfully, you must truly understand which aspects and fundamental features make a project bullish. But that takes time! To help you understand what makes Maker a great investment, I wrote a simple overview and explained what the lending protocol is all about.
What is Maker (MKR)?
Maker, formally known as MakerDAO, is a decentralized lending protocol based on the Ethereum network. At the time of writing, it is the number one protocol in the entire DeFi market with up to $2.77 billion in collateralized assets.
For example, the DAI token is a fully decentralized stablecoin used to facilitate and fund loans. Just like any other asset of this category, it can be used to safely store your assets and protect them from volatility. The stablecoin is pegged to the U.S. dollar and consistently retains the same rate.
On the other hand, MKR is a token utilized by the Maker community itself. With decentralization in mind, the team has decided to relinquish as much control as possible. To do that, they have developed the MKR governance token. With it community members and holders can propose changes, vote for different protocol parameters, introduce new features, and much more.
The premise behind the Maker platform is to provide a unique ecosystem that is far more fair and trustless compared to other protocols. Three main groups contribute to Maker, including governors, maintainers, and users.
Each individual group provides resources through participation. For example, users create vaults and use DAI while governors operate the protocol. In the other case, maintainers are developers, oracles, and keepers who make Maker possible and support all the functionalities and features that the protocol offers.
Is Maker (MKR) a good investment?
But why invest at all and what does even make Maker a good investment? After all, you need to have a strong bullish argument, and when it comes to governance tokens it is incredibly tough to predict if such a token will pop off or turn into dust.
As with all governance cryptocurrencies in DeFi, their future price action lies in the performance of the overall protocol. Therefore, you must believe not only in MKR but in Maker as the dominating lending and stablecoin protocol in the future.
Luckily for you, expectations should be non-existing as right now is a moment where Maker surpasses all other protocols in DeFi. Currently, market data from DeFi Pulse shows that it is absolutely the best cryptocurrency out of all in this particular niche. Users lock more assets on Maker compared to any other platform, including WBTC, Compound, Uniswap, and even Aave!
For many, Maker’s success comes from its focus on decentralization. Apart from that, investors favor security and are happy with the team’s dedication when it comes to protecting users. Maker may have had its ups and downs in the past, but it had not experienced issues for months. This is the exact reason why Maker is now number one on the DeFi leaderboard.
The Maker Ecosystem
Truth be told, lending and borrowing may not be the hottest topic in the market. But as long as DeFi continues to grow in value, Maker will dominate in this specific niche and retain its dominant position compared to other projects like Aave and Compound.
With that in mind, I can safely say that Maker is a good investment. But just as many other investments, MKR’s reliability stems from the performance of its native platform. The governance token will continue to rise in value, but the music will stop immediately if the developers fail to stay competitive.
Where to buy Maker?
The Maker (MKR) governance token is an incredibly popular cryptocurrency, available on almost all centralized exchanges and definitely all decentralized ones. As such, you can invest in this asset anywhere you want since there are multiple choices.
But picking the right cryptocurrency is not the only decision that you make when investing. In fact, trading platforms play a big part in your investment journey and they are no less important than the asset itself. On that account, it is necessary to think about this thoroughly and choose an exchange that suits your needs best.
For many, security and anonymity are rising again as important factors that exchanges should focus on. With the rise in hacks, which target not only traditional trading platforms but decentralized exchanges as well, it is now more important than ever to go for a secure option.
In security, KYC plays an important factor as well. Hackers are now finding a way to gain access to all your exchange accounts by stealing your private information from just a single source. For this reason alone, I recommend a trading platform that enforces minimum KYC data.
Not only will you improve your security, but you will also remain more anonymous. If for any reason you wish to remain unidentified in the world of investing, KYC is a number one priority.
When searching for a perfect exchange where you can invest in Maker (MKR), I have looked for all the aforementioned factors. After spending several hours, I have found one trading platform that stands out from all others: Coinuma.
Why you should invest through Coinuma
The situation is rather straightforward. Coinuma is an exchange that focuses on simplicity while at the same time providing an anonymous and secure experience. Based in Spain, the exchange is considered to be a heaven for all altcoin and DeFi investors who seek to buy innovative tokens. As such, Coinuma is the perfect solution for you.
In the past months, Coinuma created a new initiative that rewards loyal customers. By providing liquidity to the platform, you can now earn so-called inverse fees for every trade that you make. Essentially, every time you create an order that is not instantly filled Coinuma will reward you with fees, instead of charging you with fees.
If you deem privacy, security, and rewards as important aspects, then Coinuma is the perfect choice for you! To help you invest in Maker (MKR), I have created a special guide down below. More than just investing, you will also learn how to start out at Coinuma and use the exchange. Interested? Let’s start with registering.
Creating an account at Coinuma
Registering on Coinuma is simple and easy. The process will take no more than a few minutes, which is why I will keep this section short. To create an account on Coinuma, simply visit the official exchange at the following link and click ‘ Start Now.’
Fill out the form by inserting a username and password, register your account, and visit your email to complete the registration by verifying your account. After doing this, you are already done! But keep in mind that Coinuma may ask you for some basic KYC information.
In my investing career, this exchange has asked for the least information compared to any other trading platform. While it may not be fully anonymous, it is still a lot better than what the currently popular exchange options offer.
Funding your account
Since you are just starting out you will not have any funds. To fund your account you must head over to the ‘Finances’ section and deposit any crypto assets that you own.
If you do not own any digital assets, you will have to use a 3rd-party platform like LocalBitcoins or Paxful and have it transferred to your account. Another great option is to buy Bitcoin directly from a nearby cryptocurrency ATM.
Once you have your assets ready and have opened your wallet, click ‘Deposit’ for practically anything in the list. However, I do note that it is far easier to just fund your account with Bitcoin or Tether. Most trading pairs on Coinuma include BTC or USDT, including Maker (MKR).
After a few minutes, Coinuma will process your deposit. Do note that it may take far longer if the currency’s blockchain network is heavily congested. After successfully completing the deposit, you are finally ready to invest in Maker.
Investing in Maker on Coinuma
Trading may be incredibly complicated, but luckily investing is rather easy as long as the asset is bullish. As previously mentioned, Coinuma hosts a user-friendly interface which makes it even easier to invest.
To start, visit the main exchange section and find either the MKR/BTC or MKR/USDT trading pair. After locating it, select the pair and Coinuma will immediately load a chart. Here you can see the current market price of MKR as well as its historical price action.
If you are ready to invest, all you have to do is input the number of BTC or USDT tokens that you wish to spend in the bottom left corner. Either create a market or limit order and click on the buy button. But remember, if you want to profit from the inverse fees you must make a limit order at a level where you add liquidity which will not be instantly eaten up by the market.
See? It was not hard to understand neither Maker nor Coinuma. Both platforms provide a viable investment option that you can use more than once.
After reading this article, you finally understand if Maker (MKR) is a good investment. As the number one protocol in the decentralized finance market, it is hard to think that this is not a bullish asset. It may be only a governance token, but it will drastically rise in value as long as the developer team continues to work hard on Maker and bring new features.
But while you have learned what makes Maker a great investment, there is one more thing that you should keep in mind. As I have shown you, Coinuma is also a great exchange through which you can invest. With limited KYC, a wide selection of altcoins, and a secure system, Coinuma is definitely a platform worth thinking about.
This rings true especially if you are a whale, or at least someone with a larger portfolio. Since Coinuma offers inverse fees, you are rewarded for every drop of liquidity that you bring. After all, why pay for fees when creating an order when you can earn them?