xDai Crypto: The Complete Guide
Posted by Frank Gogol in Crypto | Updated on May 29, 2023
With bitcoin began a revolution like no other, sure, it took its time, but it has quickly raised the ranks of investments like no other. Taking a cue from bitcoin, several other people have made similar technological advances and created the network of cryptocurrencies. Every other coin other than bitcoin is known as altcoin (short for alternative coin), with the message being that this coin can be used in place of bitcoin.
Some of these altcoins work similarly to bitcoin and are priced based on supply and demand. In contrast, others are directly proportional to standard amounts of fiat currencies such as the US Dollar. xDai Crypto is one such coin whose value depends entirely on the US Dollar. One xDai crypto equals one US Dollar and is an example of stable coins.
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What is xDai Crypto?
xDai Crypto is a type of cryptocurrency that is regarded as a stable coin. Stable coins are directly pegged to material forms of convectional money such as the US Dollar or precious metals’ rates such as gold and silver. The xDai Crypto was designed to be a super-fast mode of the transaction system with considerably fewer transaction fees.
xDai Crypto is a derivative of the Dai cryptocurrency. It runs specifically on the Dai network instead of the original Ethereum network on which xDai cryptocurrency is based. This feature allows xDai Crypto to be so fast in transactions and be cheaper when compared to other cryptocurrencies.
Simply speaking, you can use this crypto to transfer money to peers and small businesses and pay extremely low amounts in transaction fees, and have lightning-fast results. The xDai crypto has gained much traction due to its promise to be a stable coin and always be pegged to the U. S. Dollar.
How To Buy xDai Crypto?
However great the prospects of xDai Crypto seem to be, buying this crypto is not as easy as buying most other crypto coins. You first need to buy Dai with conventional money such as dollars, pounds, euros etc… and then use Dai to exchange for xDai. Seems like a simple 3-step process, right? It is not.
First, you need to buy Dai from any cryptocurrency exchange. This involves first depositing your money and then using that to buy Dai. Then, you need to transfer the Dai coins that you recently bought to your Dex wallet. Dex wallet is the official wallet for the use of xDai crypto. After transferring your Dai coins to your Dex wallet, you must now exchange your Dai for xDai on the wallet. Hence you will now be able to use xDai for all your payments after completing this process.
How To Sell xDai Crypto?
If buying the xDai crypto was a hassle, then you should be relieved to know that selling the xDai is rather simpler. You can always find the option to sell in your wallet and use it to exchange your xDai crypto for US dollars or any other currency supported by your network. Thus, xDai crypto is easy to access stable coin to purchase and sell in your cryptocurrency wallets and exchanges.
However, if you wish to purchase other forms of fiat currency such as euros or pounds, you will have to undo everything you just did to buy the coin and finally exchange it for the currency you wish to have. For example, if you want to exchange your xDai for euros, you will first convert your xDai to Dai on your crypto wallet. Then, transfer the coins from your wallet to your cryptocurrency exchange account that hosts the Dai cryptos for you to trade-in. Next, sell your Dai for whatever currency you prefer, fiat or cryptocurrency.
Considerations When Buying xDai Crypto
The xDai crypto may be great, but there are some things you should consider before buying these coins.
It Is A Stable Coin
xDai is a stable coin pegged to the US dollar. That means its value will increase and decrease proportionally to the US Dollar’s value, making it a less lucrative option if your interest is solely to invest in the coin. xDai crypto was created to be helpful in peer–to–peer transactions and cost less in transaction fees. Its main goal is a peer-to-peer connection. Therefore, there is little to no chance for it to become difficult to afford beyond the dollar price.
It Is Difficult To Purchase
xDai is still nascent and needs more time to become widely popular and easily accessible to the general public. The process to gain this crypto into your digital wallet is difficult as is. Hence, there is a lot of hesitation in purchasing the coin yet. But hey! Bitcoin, too, was received with a lot of uncertainty as well.
A Standard Peer-To-Peer Model
The primary goal of xDai is to help people connect with each other’s purchases and payments. This is a strong suit for the crypto-coin and has always been encouraging on this front. It can be easily used along with burner wallets and help you with instances where you have multiple purchases in a short period, like attending an event or an exhibition or fair. xDai crypto has made it possible to easily make payments to each other at the standard dollar rate and reach out to the general public.
Works On The Ethereum Network
xDai crypto is an excellent cryptocurrency to pay with. It runs on the Dai network, which itself runs on the Ethereum network. Ethereum network has been known for its reliability and scalability in operations and hence is a great network to use for transaction verification purposes. XDai crypto doesn’t directly work on the Ethereum network because Ethereum is, in essence, an alt coin network, whereas xDai requires a stable coin–based network. Because if hosted directly on Ethereum, it would cause difficulties with price management and offer much higher transaction fees. But by hosting itself on the Dai network, xDai need not worry about the price volatility of the Ethereum network.
Random Way Of Verifications
xDai crypto network depends on the RANDAO based random number generator to rely on validating all its transactions. This allows the network to be free from tampering and be open and public in its transactions holdings.
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xDai crypto is a stable coin cryptocurrency that is directly pegged to the value of the dollar. It runs on the Dai network, which runs on the Ethereum blockchain network for full–scale transparency. Its way of verification involves using RANDAO for random number generation and having a clear and transparent ledger. This is a coin that was created for peer–to–peer transactions and is meant to be easily affordable due to its low amounts of transaction fees and superior validation speeds.