Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Fariwala on October 19, 2021, 01:51:40 AM
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If you're looking for cryptocurrencies without the crazy price fluctuations, stablecoins are what you need.
Cryptocurrencies are known for their volatility, but there is one type of cryptocurrency that's different. Stablecoins are cryptocurrencies with more stable prices. They accomplish this by tying their value to another asset, such as the U.S. dollar.
Without that volatility, stablecoins don't offer the same potential for huge returns. They do, however, have advantages over more volatile coins that could make them worth buying in certain circumstances.
What are stablecoins?
Stablecoins are a type of cryptocurrency. Each stablecoin ties its value to that of a more stable asset. The most common asset used is fiat money, meaning a government-issued currency. Other assets, such as precious metals, can also be used.
Unlike other cryptocurrencies, most stablecoins have central authorities managing them. The central authority typically purchases the asset tied to the stablecoin and puts it in a reserve. For example, if a stablecoin is tied to the U.S. dollar, then the central authority could put $10 million in a bank to back $10 million worth of the stablecoin.
Examples of stablecoins
Here are the biggest stablecoins by market cap, all of which are tied to the U.S. dollar:
More info: https://www.fool.com/the-ascent/cryptocurrency/articles/should-you-or-anyone-buy-stablecoins/
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It is worth buying stablecoins if in the future we are going to invest this amount in cryptocurrency, but the time has not yet come for such an investment. The undoubted benefit of stablecoins is that they, as a kind of buffer between fiat and cryptocurrency, greatly simplified the work with cryptocurrency. Now, when our investments or our profits in a certain cryptocurrency starts to fall or for some other reason we need to urgently withdraw capital from a certain cryptocurrency, we do not need to transfer it to another cryptocurrency or fiat, but we can temporarily place our capital in a stablecoin, which is in any time you can use it again to buy any cryptocurrency.
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I think that this is not necessary, you can buy simple dollars. but if you are a crypto enthusiast, then having stablecoins is a must, especially now, when everything seems to be an inflated bubble.
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Stable coins are worth buying if we are going to work with cryptocurrencies. In this case, the stablecoin is a good link between the cryptocurrency and the common currencies of the states. In some cases, stablecoins are very helpful if you urgently need to withdraw capital from a certain cryptocurrency, but the time has not yet come to convert to another cryptocurrency.
It doesn't make much sense to buy stablecoins to use them as a means of payment.
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Fiat or stable coins were created to secure the assets we have and of course it will also provide a sense of security when the price of the coin rises or falls quickly, or maybe more precisely if you play with futures, the capital of stable coins is very important.
I come from Indonesia and I also understand very well what is happening at Binance, of course Binance also provides the best opportunity for the cryptocurrency market in Indonesia.
Like the extension market collaboration between Binance and Tokocrypto, there are Fiat pairs such as BIDRxBTC or BIDRxBNB.
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Buying stable coins is similar with guarantee to minimize loss, lock our fund in safe level and get small reward when go to the moon. There's no volatility in there but that's the weapon for investment strategy, use big money hold long and sell it at end of the year. Use 20% for stable coin is wise option need more work with sport and gambling platform will make the coin popular, buy it for safe not for big reward.
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I will buy stablecoins only when I don't know which coin/token to trade so I will hold my money with stablecoins while finding a normal coin/token to trade. Stablecoins are good to help us avoid volatility, but we must trade volatile tokens so that we can earn a good profit.
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Maybe we should have Stable coins just in case we can buy more top 10 coins on Coinmarketcap and this is a surefire trick for beginners who are trying to trade in the cryptocurrency market.
Or stable coins are also not needed if we continue to have Bitcoin and Bitcoin is the main parent of the coin, which is sure when it goes up and down it depends on the Bitcoin you have to buy more altcoins.