It seems like volatility and cryptocurrencies go hand in hand lately. Though, the decentraliSed nature of altcoins is very attractive, it does bring a certain amount of instability with it as baggage.

 

Buy DigixDAO (DGD)

There is currently no way to buy DGD directly. So the only way to buy DGD is to purchase BTC to use on an exchange, and then switch it to Bitshares.

Step 1: Choose Your Trading Platform

Firstly you will need to decide on your cryptocurrency trading platform and create an account there. The choice of platform isn’t very important as a beginner, what really matters is a trading platform that you are comfortable using..

Choose one of these platforms and complete the follow steps to get started:

Binance
Go to Binance and create a new account if you do not already have one.

Once your account has been confirmed, log in to your Binance account and click on funds at the top right, then “Deposits Withdrawal”.

Select and copy your bitcoin address.

Look in the “Bitcoin” list and click the Bitcoin deposit button. Then a series of numbers appears in the “BTC Deposit Address:” field. You must copy this series for the next step. This is your bitcoin wallet address.

Go To Bit-z and create a new account.

In the Balances page you will to search for Bitcoin in the list. If all goes well, you will find it at the top.

Next click on the option of Bitcoin and then on the next page copy the Deposit Bitcoin (BTC) address, which the set of numbers and letters.

You’re told that you’ll need a trade password, you can create it and then go back to your Balance.

You need this address for the next step.

STEP 2: BUY BTC

The second step is to get your Bitcoin, you can do that at a broker such as BTCdirect .

If you’re buying BTC for the first time from these brokers, you will be asked to confirm your bank account.

Upon payment you will be asked to enter a bitcoin address. You must fill in the address that you have copied at Binance.

STEP 3: WAIT UNTIL YOUR BTC HAS ARRIVED

Once you have purchased Bitcoin and entered the correct BTC deposit address with the payment, you have to wait until the BTC arrives in your wallet.

This process can take up to ½ hour, so don’t worry if it’s not immediately visible on the exchange.

STEP 4: BUY DGD

Once your Bitcoin has arrived at your trading platform, it’s time to buy some DGD.

Binance
Go to the Binance trading exchange (click the top left on exchange and choose Basic) and use the search function within BTC Markets to find the DGD/BTC trade.

Once on the DGD/BTC trade page you can look in the left box marked with Buy DGD. Here you can decide how much DGD you want to buy using your Bitcoin.

If you then press Buy DGD your order will be placed. When the order is filled you will see your number of DGD on the right-hand box or on your balance page.

Enter the Bit-Z homepage and use the search function within BTC Markets to find the option to trade DGD/BTC.

Use search to find the DGD/BTC trade.

Once on the DGD/BTC trading page you can indicate in the left box marked with buy DGD. Here you can decide how much DGD you want to buy.

If you then press Buy DGD, and enter your trade password that you created earlier, your order will be placed. Once the order is filled you will see your number of DGD on the right-hand box or in your balance page.

Congratulations you’re now the proud owner of DigixDAO.

Traditional investors get spooked easily, which keeps many from entering the world of cryptocurrencies.

DigixDAO is making an attempt to solve the volatility issue of cryptocurrencies by using the Ethereum blockchain to create smart contracts for gold certificates.

Having a token tied to a stable asset as a way to store value will hopefully create a system that sees less fluctuations in the market. This could very well be an attractive platform for investors unwilling to brave the Wild West of crypto trading.

What is DigixDAO?

DigixDAO is a Distributed Autonomous Organization (DAO) located on the Ethereum blockchain. A DAO is simply a company that operates through rules encoded in smart contracts. A decentralized corporation, basically where the financial ledgers are tracked and time stamped on the blockchain.

DigixDAO works on a Proof of Asset protocol, so the tokens are backed by a physical asset.

There are two tokens issued by DigixDAO. The DGX and DGD.

Using an ERC-20 token, a user can buy a DGX coin which equals 1 gram of gold. Once a user has purchased the token a gram of gold is allocated to them on the blockchain in a smart contract. The DGX is a token to perform transactions, transactions as the aforementioned

The gold is bullion from LBMA refineries with accompanying Assay Certificates from refiners ranging from Valcambi, PAMP Suisse, Nadir Bullion

It’s not exactly an exchange then, as it is decentralized and there is no third party requiring any trust. Sort of.

Since gold is a physical asset and has to be stored, DigixDAO has storehouses where the gold will physically be located. That requires trust. You don’t have to trust the ledger on the blockchain, but you do have to trust that the gold is where it says it is and that there is enough to cover the tokens that have been bought.

DigixDAO employs Inspectorate Bureau Veritas to run quarterly audits of the gold in their storehouses. Established in 1828, they have been a trusted auditor for a long time. So, if you need to trust a third party, then one with a long history and track record is a good start.

DGD, then, is the token distributed to investors who aren’t looking to buy gold. The DGD token acts the same way other crypto coins are used. DGD token holders will receive DGX tokens gained through fees collected on the platform. The more users and transactions performed on the blockchain the higher the value of the DGD.

Why Gold?

It seems to go against the cypherpunk ethos to tie a cryptocurrency to an asset like gold. Going against the trustless formula many tokens require is a calculated move by DigixDAO to offer a secure place to store your funds.

What is the benefit of using DGX to buy gold?

Let’s suppose that you have a crystal ball and can predict a drop or dip in the crypto markets before they happen. Usually when a drop happens, it affects coins across the board in the same way. Gold, however is not so affected.

So, if you want to hold your funds securely without cashing them out, you wouldn’t want to buy up other tokens that will drop as well. Buying gold shares, then keeps your funds secure with a commodity that won’t fluctuate so much during a bear market.

You then can ride out the volatile market until you feel like you are ready to buy back in. All without ever divesting and paying taxes on your gains while you’re waiting it out.

This has obvious benefits for both the die hard crypto traders that want a hedge on their investments and for the traditional investors that are not used to the new world financial order being ushered in by the rise of altcoins.

Relative to other cryptocurrencies, DigixDAO is moving rather slowly. They have been around longer than most altcoins, but still have a ways to go before they are a fully fleshed out platform. This isn’t a bad thing. Though things change quickly in crypto markets, DigixDAO is not likely to be left behind. Though the Gold Standard was abandoned long ago by fiat currency, it may be the ticket to entry into the crypto market many have been looking for thanks to DigixDAO.

Posted by jsi250

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