Why Should I Buy Stablecoins?

News

2018 has seen the rise of stablecoins. Now we are in 2019, we should be wary of yet another stablecoin revolution since we believe that this year, stablecoins will become bigger and better than ever before. What is a Stablecoin? According to Investopedia: “Stablecoin refers to a new class of cryptocurrencies which offer price stability and/or are backed by reserve asset(s). In recent times, stablecoins have gained enough traction as they attempt to offer the best of both worlds – the instant processing and security of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies.” Such stablecoins on the markets today include; Tether, USD Coin, TrueUSD, Paxos Standard Token, Dai, Gemini Dollar and others. Why should I buy them? Let’s remember that stablecoins are not an investment, you will not make a return from buying and holding stablecoins because they tend to be pegged to a stable asset, like FIAT current. In the instance of Tether, USDT is one Tether token that is pegged to the price of the US Dollar, therefore the token is always equal to $1.00. What’s the point? The idea of a stablecoin is to make it easier and safer to purchase and invest in other cryptocurrencies. Usually to purchase altcoins, you have to make the purchase in cryptocurrencies as many exchanges only allow for this feature. This means, you have to make a Bitcoin (or similar) purchase first, which instantly puts your deposit at risk, simply down to the fact Bitcoin is so…
Source: Why Should I Buy Stablecoins?

Leave a Reply

Your email address will not be published. Required fields are marked *