Invest in stablecoins — DotBig guide

Invest in stablecoins — DotBig guide

Differences between stablecoins

We divide these assets into different categories by defining their key characteristics. The first and the most obvious feature is the fiat currency, to which the rates of one crypto coin are pinned. USD is the most popular one.

  • USD Coin (USDC)
  • TerraUSD (USTC)
  • Binance USD
  • Dai (DAI)

Why do people buy them?

There are a few reasons why people buy stablecoin. See the following:

  • DApps operating on blockchain networks allow using them as trusted payment methods.
  • When putting money in such assets, you can generate passive income. Annual interest rates vary between 3% and 20%.
  • Stablecoins help to decrease the impact of changing price rates in the crypto market. That’s why they are good to hold your long-term savings. This gives you confidence that your crypto assets won’t devalue unexpectedly, as often happens to other popular cryptocurrencies.
  1. Make the minimum required deposit.
  2. Find your coin.
  3. Transfer money from your account and add any stablecoin to your wallet. Later, you will have the possibility to buy other crypto assets by using these savings.

Conclusion

Investing in stablecoins has the same goal as saving money in USD or other stable fiat currency. However, digital stable currencies might be more usable than fiat money. The transactions made via digital means are faster and safer. Finally, they add stability, which other cryptocurrencies cannot do.

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