Finding a stable cryptocurrency seems to be tantamount to finding a unicorn. Once one currency dips or drops, others tend to follow across the board.
DigixDAO is a cryptocoin that is tied to gold to give it stability. Though it looks and acts just like any other cyroptocurrency, it is backed up by literal gold bars kept in a secure location.
How To Buy DGD
So you’re interested in buying DGD? Currently, there is no way to buy DGD directly with fiat, so the best way to buy DGD is to first purchase Ethereum, transfer it to your chosen trading platform and change it to DGD. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for DGD/ETH and confirm.
3. On the DGD/ETH trading section you can now choose how much DGD you want to buy with your Ether. Once you have chosen your amount, press Buy DGD and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of DGD.
What is DigixDAO?
Found on the Ethereum blockchain, smart contracts are created that issue gold certificates.
Since many traditional currency traders are not too keen to ride the ups and downs of the typical cryptocurrency, this could be an attractive alternative for more conservative traders.
So, why not just buy gold instead of a cryptocurrency?
For the simplest of reasons, liquidity and stability.
Let’s take two examples of the benefits of using DigixDAO as your coin of choice.
If you see a trend forming and think that a drop is about to happen, you may not want to cash out your coins. Say, Bitcoin for example. You could simply buy some DigixDAO coins, called DGX or DGD depending on what you plan to do with the coin, and ride out the dip. Assuming gold doesn’t also underperform and stays around the same value, then you can wait until the Bitcoin value rebounds and then buy it back with your DGX coin.
Alternatively, if you have DGX coins and want to buy crypto quickly to take advantage of a fluctuation in the trading market then you can do so quickly. Rather than selling off your gold certificates, converting to fiat, then converting to crypto, you just use your DGX to buy whatever coin strikes your fancy.
How does the DigixDao coins work?
There are two different coins. One is the DGX which is the equivalent to one gram of gold. The other is the DGD which is a trading coin.
If a trader wants to invest in the future of a coin and actually ride the ups and downs then the DGD coin is the way to go. If somebody invests in DGD, then as the platform gets used by more people and the value increases, then DGD holders will reap DGX coins.
To use the platform itself and to buy the gold certificates, one would need to buy DGX coins. Any fees would be paid with DGX, as well.
Since cryptos are usually trustless, it seems strange, then to have to trust this platform. The way around this is that DigixDao has an auditing firm Inspectorate Bureau Veritas to run quarterly audits of the gold in their storehouses.
You needn’t trust DigixDao, but instead place your trust in a provem auditing firm that has been around since 1828.
Though this coin may not be for everybody, after all the blockchain is all about decentralization and forming trustless relationships, there is a demand for DigixDao. Once they have the platform fully fleshed out and attract wider adoption, they should be able to carve out a nice niche for themselves within the crypto trading world.