Buying Decred: How can you invest in Decred?
Of course, it is currently possible to invest in thousands of cryptocurrencies on the entire digital currency market. Decred is one of the projects that has seen a lot of growth over the last few months. Since not everybody is familiar with Decred yet, we would like to give you more information about this crypto coin. By reading this article, you will get a clear answer to the following question: is investing in Decred wise or not? This way, you won’t be faced with any surprises.
How can you buy Decred?
Decred is also known as the democratic cryptocurrency. Because everyone who owns Decred can vote on future developments, you too can decide on the future of this coin. Miners are also fairly rewarded with the Decred coin: you do not need a supercomputer to mine Decred coins. Do you believe that Decred can rise in popularity in the future? In that case, it might be smart to invest in Decred by buying the cryptocurrency.
Do you want to buy the Decred cryptocurrency? You can do it quickly online! At Binance, you can buy Decred at very low rates: you never pay more than 0.1% in transaction fees when buying cryptocurrencies at Binance. Use the button below to open an account with Binance right away:
How can you actively invest in Decred?
Do you want to actively invest in the Decred (availability subject to regulation)? This is possible with an online broker! At an online broker, you can use CFDs to bet on both falling and rising Decred. At Plus500 you can try trading CFD cryptocurrencies with a demo, completely free and without risk. Use the button below to open an account with Plus500 right away:72% of retail CFD accounts lose money.
What is Decred – goal of the project
Decred was launched in February 2016. This project aims to be an open and self-financing cryptocurrency based on community governance. One of the most interesting aspects of the Decred cryptocurrency is that they are trying to combine the understanding of digital currencies like Bitcoin with some kind of decentralized governance.
This is done through the use of different mining protocols. The inclusion of a form of governance in protocols where participants can vote is something that has been used by more and more cryptocurrencies recently. This is seen as one of the most effective ways to prevent disagreements among developers.
How Decred works – difference from Bitcoin
Decred launched the main net with the aim of creating a currency that would be a truly decentralized ecosystem. They do this by using a technique similar to Bitcoin. Currently, Bitcoin is mined using Proof-of-Work algorithms. This means that miners are trying to crack complicated mathematical algorithms using powerful computers.
Some miners have managed to develop specific machines called Application Specific Integrated Circuits (ASICs). These ASICs can mine Bitcoin much more efficiently by using the SHA256 hashing algorithm. This means that the miners that have these machines can outperform the other smaller miners. This leads to large and centralized mining pools.
Decred can counter this by means of a hybrid mining system. The Decred cryptocurrency uses a combination of a Proof-of-Work (PoW) and Proof-of-Stake (PoS) mining algorithm. Unlike PoW mining, no calculations are required in a PoS. Decred still uses PoW mining to verify transactions. Now, the hashing algorithm Decred uses is provided with the “blake” algorithm. This means that miners can no longer use ASIC machines to take over.
All that is needed in a PoS model is for the participants in the network to commit a certain number of coins to the transaction. These coins will confirm the transactions without the need to calculate all sorts of complicated sums. Do you think it is important that everyone can benefit from mining? In that case, it may be smart to invest in Decred.
Voting rights with Decred
The PoS model has many other advantages. It is not just the transactions that are carried out within the project that are affected. The users who hold the tokens can also take part in votes on the future of the platform. An example of an important meeting that was proposed to the community was the implementation of special privacy protocols. The Decred team wanted some of the anonymity features that coins like Monero had. They then turned this into a vote, a vote that basically anyone could participate in.
The users were given the right to vote on the most important decisions that would shape the technology in the future. Voting takes place via Decred with the help of users who buy “tickets”. These tickets cost a certain amount of DCR. Although you pay for these tickets, you get it back at the end. This means that you don’t have to pay money to actually participate. Through this system, they hope to give it a democratic character for the other users. This makes it a project that really puts the interests of the users first.
Do you think it is important to have a say in the future of a cryptocurrency? In that case, buying the Decred cryptocurrency may be attractive.
Invest in Decred through an exchange
By investing in Decred yourself, it is possible to achieve a high return, although this is always questionable. Investing in Decred generally takes place on an exchange. On an exchange, you can buy your Decred coins. There are numerous exchanges you can choose from. Well-known exchanges where you can always trade cryptocurrencies are Plus500 and Bitvavo. These exchanges also make it possible to safely store your coins.
Conclusion – should you invest in Decred?
A large part of the crypto community thinks that Decred will really experience an enormous growth if they manage to achieve all their goals. Now that Decred has been active for a long time and they have already shown a lot of what they can do, this is of course not a bad idea. If you yourself see a future in Decred, you would be wise to invest some capital in this cryptocurrency. However, there is no guarantee that everything will work out. In the end, it will always be a personal choice to make. However, this article will give you a better idea about Decred.