DAI to GBP Stablecoin Conversion
Ever since 2017, DAI has been adopted and widely used because of its non-volatile characteristic. The belief is that certain cryptocurrencies will gain enough traction to be globally adopted and used for trading, enhancing the global finance ecosystem. But how do you convert DAI to GBP stablecoin?
DAI is a decentralized cryptocurrency, specifically, a stablecoin.
Stablecoins are crypto versions of traditional currencies like the US dollar (USD) that solve the volatility query with many cryptocurrencies. DAI is pegged to USD and maintains a 1:1 ratio against USD.
DAI is built on the Ethereum blockchain-based application. You can receive, store, and or transfer it to anyone despite their location without the need for an intermediary. Unlike other cryptocurrencies, it does have a central authority controlling its supply in circulation.
To get value, DAI relies entirely on demand. When you deposit ETH or any alternative ERC-20 token into the market as collateral, DAI is created and provided to you at a collateral loan ratio of 66%. This criterion increases the overall supply and acts as a prime value source.
Use cases for DAI include a secure store for value, a stable payment method, and a reliable tool for minimizing risk among crypto traders. You can also get access to loans without the need for approval from creditors.
GBP is a stablecoin backed by the sterling pound with an alternative market name of "pound token". You can redeem GBP one-for-one with the sterling pound.
While the initial launch was Ethereum blockchain-based, the developmental team, Blackfridge, has plans to bridge other networks. You can buy and or sell GBP on Gate.io, Bittrex, and Uniswap.
The key reason behind this project was to provide a seamless way to convert fiat GBP to cryptocurrency without delay. Other use cases are a rigid value store and smooth exchange for value. The pound token goal is to provide stability and boost the stablecoin market confidence through strict regulation and frequent comprehensive audits. It aims to be the benchmark for other stablecoins.
Converting DAI to GBP
To convert DAI to GBP, you need a wallet for storing your crypto. If you are a beginner, I would recommend opening an account at Binance.
Navigate to the buy/sell crypto tab and click on buy. Once you click on "buy crypto", the available payment options in your country will pop up. Key in DAI, pick your preferred payment means and enter your credentials. Press enter to confirm your order. Go back to your wallet and check your balance. It should reflect the purchased amounts.
Now go to Binance Convert, found at the top left corner under the "Trade" section. On the 'convert' page, select DAI, and the desired token, GBP. Preview the conversion rate through the convert button.
You can refresh every five seconds to get a new rate, perhaps a better one. Click on convert and GBP will be available in your wallet in less than a second. Ensure you follow these instructions to get the best conversion rates for DAI to GBP.
Author: John Walter
A tech enthusiast empowered with a passion for learning new technologies; loves to write and help others understand the Tech/Web3 niches.