Cryptocurrencies are dominating the world as millions of people are using their services. And if that is not enough, thousands more are joining the respective networks with each passing day. There’s no denying the fact that people are fond of them as they hold quite a few advantages over regular payment methods.
They are much more secure, offer instant transactions, have smaller fees, and most importantly, some will allow you to make a profit. We say some because not every cryptocurrency is profitable. Some are just used for trading. Those cryptocurrencies are known as stablecoins and they will be the main focus of this article.
As you may know, there are two types of cryptocurrencies – stablecoins and highly volatile cryptocurrencies. We are going to dive into the details and explain the benefits of investing and using stablecoins and thus, let you decide whether you should consider them as your next investment or not.
Where Can You Purchase Stablecoins?
Before you get familiar with stablecoins, it is worth knowing how can you actually purchase them. The process of buying stablecoins takes place at trading sites. These marketplaces allow you to connect with sellers from every part of the world.
Considering the fact that they use the latest security systems, you can rest assured knowing that they are safe. But, it is important to see how reputable one trading site is and you can do that by finding out its profitability rate, as well as reading user and expert reviews on its services.
One of the most popular trading sites that operate globally is Bitcoin Digital. The process of registration here is very simple and lasts just a minute. Bitcoin Digital is also fully optimized for mobile use, which means that you can trade on any Android and iOS device, as long as you have a stable connection to the Internet.
Now, let’s see what the benefits of stablecoins are.
The Benefits of Investing and Using Stablecoins
What makes stablecoins so popular is the fact that they are not affected by market volatility. As you know, cryptocurrencies such as Bitcoin come with a high volatility rate, hence their price fluctuates daily. It can rise or fall.
Stablecoins don’t work like that. They are tied to an outside asset such as FIAT currencies and these assets allow them to maintain their stability. One of the most popular stablecoins is Tether, which is tied to the US dollar. Tether’s value is $1 and hasn’t changed in the past couple of years.
The biggest benefit that comes by using stablecoins is the fact that as an investor, you can always use them for trading. Investors are always fond of services/products that maintain stability over the course of a longer period, and that is exactly what stablecoins will provide them with.
Not only that, but their network allows far more transparency than highly volatile cryptocurrencies, each transaction is processed much faster, and the one thing that would benefit everyone is the fact that they come with much smaller fees.
What About Highly Volatile Cryptocurrencies?
But, stablecoins cannot be used as a means to make a profit as their price is fixed. That is what highly volatile cryptocurrencies are used for. Take Bitcoin as an example. This cryptocurrency is subject to a lot of changes and its price can drop significantly in a short period, but it can also rise. Recently, it managed to go as high as $63,000. But its price dropped since then and it currently stands around $35,000.
The bottom line is that if you want to purchase services/trade, then stablecoins are by far the better choice. But, if your goal is to make a profit, then you should opt-in for highly volatile cryptocurrencies.