How do I use stablecoins?

Asked 2 years ago

Hello. What exactly are stablecoins used for? Thank you

Odin Clarke

Wednesday, February 02, 2022

You can use stablecoins to facilitate trades on cryptocurrency marketplaces. Instead of purchasing crypto using fiat money directly, you can convert your fiat into stablecoins and use them to complete a trade for another crypto, like Ethereum. You can also use stablecoins as a store of value to hold your crypto profits as you wait for an appropriate time to invest.

Truman Perry

Saturday, February 26, 2022

Stablecoins are a safe haven for traders and holders of cryptocurrencies. It is hard to talk about stability in the cryptocurrency space without stablecoins. Fiat currency is stable but if all the funds in crypto were to come back into fiat currency then some of the objectives of decentralization would be defeated.

With stablecoins, you can hold your assets in your wallet and on the blockchain but in an asset pegged to fiat currencies. Suppose you think that the market is going to take a downturn, and you are not ready to stay in for the long-term, but you still love to profit from small price fluctuations, then stablecoins are the easiest way to achieve this while paying reasonable fees.

Stablecoins also bridge the gap between centralized and decentralized finance. The only place for storing cash with a stable value such as fiat currency would have been in banks that will charge lots of money in transaction fees. With stablecoins, you can keep your money on-chain in your wallet and make several transactions paying minimal fees.

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