Beginner's guide to stablecoins

[Justin]

AS far as I know stable coins were launched to minimize the price fluctuations of crypto currency and provide a more stable investment options for the crypto currency inverstors and traders,

 

[eLdavis]

Wow i didn't actually think of that. As a beginner in the world of crypto currency, it would be best you study on stable coins and start investing on them first, since the prices are not as unstable as other coins. This would help minimize losses and would give you a smoother and better view on crypto.

 

[Setho]

Thank you very much for this hindsight on stable coins. It is also important to note that as a beginner, one should trade against stable coins the most .

 

[tyrim88]

One of the reason of introducing the stable coin is to be able to peg the value of your investment in a coin that does not fluctuate and this is really a way to prevent loss in your investment.

 

[Sotherefore]

My most favorite stable coins is the usdt, yes instead of buying bitcoins I'll rather prefer to get the usdt from there I can venture into any cryptocurrency I am considering to invest on. Stable coins has really helped save a lot of people from losing the value of their assets.

Stablecoins first arrived on the scene in 2014. Since then, a number of stablecoins have been created – including USDC and, perhaps more famously, Tether (USDT).
For example, in the case of USD Coin (USDC), for every token that’s created, one US dollar is held in reserve as collateral. Stablecoins combine the instant processing capabilities, functionality, adaptability, and security of cryptocurrencies with the stability and trust enjoyed by fiat currencies.

Unlike traditional cryptocurrencies, their price is not set by supply and demand. Rather, they employ a range of different mechanisms to ensure the price remains pegged to that asset.

There are three main types of stablecoins: fiat-collateralised, crypto-collateralised, and non-collateralised.

As a beginner in crypto instead of investing in popular coins, firstly buy some stable coins and then venture into other popular coins e.g btc, eth etc.

 

[HayKay]

Definitely stable coins have become a preferred means of holding and transacting in the crypto market - they have become like the standard currency for transactions in the crypto market which is a good development.

 

[Sincerem]

Thanks so much for sharing , over here because of our digital transactions using binance exchange , we mostly make use of usdt as a Trusted coin. There are so many others like you mention such as the usdc and the busd.