How and why to buy Stablecoins in 2020

[JessicaVL]

You might be pretty familiar with the cryptocurrency markets, but sometimes stablecoins can still feel a bit elusive. They’re a type of cryptocurrency that are designed to reduce price fluctuations. It’s essentially a coin which has its value pegged to another asset, like fiat. We’ll be taking a look at how and why to buy stablecoins in 2020. Let’s dive in.

What is a stablecoin?
Most people imagine stablecoins as a coin that’s connected to fiat currency, like the US dollar. While this may be the case for some stablecoins like Tether (USDT) and TrueUSD (TUSD), it’s not true for all of them. You can create a stablecoin that’s pegged to pretty much any asset, including precious metals, other cryptocurrencies, or even a combination of the two.

Ultimately, the goal of a stablecoin is for it to be worth the same as the asset backing it. So, a stablecoin that’s pegged to the US dollar, will always have its value sit at around $1.

https://www.youtube.com/watch?v=pppOXGkWRow

Why buy stablecoins?
A lot of people are enamored by the volatility of the cryptocurrency markets, but others find it pretty stressful. Maybe you fall somewhere in the middle: You’re a crypto-fanatic, but all of the volatility in the market gives you a headache.

Stablecoins allow you to stay in the crypto-game, while combating the (sometimes wild) price fluctuations that occur in this exciting industry.

Stablecoins also allow you to use fiat like crypto. They’re pegged to fiat, so it makes it pretty simple to invest USD on crypto exchanges. Stablecoins can also provide perspective to those unfamiliar with the way the cryptocurrency market works. Most people will want to compare crypto value to fiat prices, so they can use stablecoins to do so on exchanges that don’t support fiat.

Stablecoins also provide the security and low transaction fees that are indicative of the nature of the crypto asset market. Stablecoins are a great way to achieve fast and affordable transactions of fiat-like assets. You’ll have the speed and cheap transaction fees associated with crypto, and you’ll also know the value of the stablecoin you’re using is the same as the fiat (or other asset) that it’s linked to.

https://www.youtube.com/watch?v=LRmIEBYDyUM

How to buy stablecoins
Tether (USDT) currently has a market cap of $4,129,579,780, the fourth largest according to CoinMarketCap (at the time of writing). TrueUSD (TUSD) has a market cap of $161,707,769 USD at the time of writing. They’re both doing pretty well at the moment. Luckily, getting in on the how and why to buy stablecoins in 2020, also provides you with some insight into the buying process on Vertex.Market, a peer-to-peer marketplace where users can launch their own offerings. You’ll find both of the stablecoins available on the marketplace, with some pretty fantastic deals. Simply sign up, and do your thing. No KYC necessary.

https://twitter.com/blckchaindaily/status/1201990683332091910

Why stablecoins?
Stablecoins were initially invented as a way to combat the volatility of the cryptocurrency markets, and they’re doing a pretty stellar job of fulfilling their purpose.

So, how and why to buy stablecoins in 2020? It’s pretty simple: you’ll be incorporating a solid digital asset into your portfolio, that is backed by a major asset, and you’ll still receive all of the perks that come with other cryptocurrencies (like low transaction fees and fast transaction speeds). Find offerings on Tether (USDT) here, and TrueUSD (TUSD) here.

https://medium.com/@official_83664/how-and-why-to-buy-stablecoins-in-2020-46212a6546ab

[avikz]

Nice article! I believe people buy and hold stablecoins for two reasons mainly,

1. Capital protection - stablecoin give peace of mind in this volatile market. If someone wants to have exposure on crypto market and want to protect the capital at the same time, stablecoins are the ideal choice.

2. Trading tool - majority of the day traders used to face a big challenge in calculating their trades within a very short peeiod of time. But to excel in trading, one needs to calculate their profitability veey quickly as the market is very dynamic. However, with stable coin, the calculation becomes very straightforward and can be done with just a glimpse at the order book.

For me, I mainly use USDT for trading because it gives me an opportunity to quickly calculate the profitability of an open trade. Only a day trader will understand the relief.

[asriloni]

There is something that makes me feel strange about that is backed by the major asset and how it is possible when almost all of the stable coins backed by the stable commodity that called as a fiat money?
There is another kind of stable coin just like crypto gold which is backed by gold.
Just use stable coin to get profit and secure it. Tether is not worth to buy anymore.

[TanakabZX]

Would have add a plus point if new projects can start paying bounty hunters in stable coin, apart from traders which i belief are the ones benefiting the most from stable coins i have no reason to hold them

[Bonenx14]

for me the strongest reason to use stablecoin is to hold funds when market conditions are not favorable, because compared to hold but prices continue to fall then i will divert more funds with stablecoin and i'm sure some people will use a method like me too

[Doranile432]

Holding funds while market is not in favour is no good reason why stable coin is useful, its just same thing as using fiat to buy coins now that market is in red, another use case of stable coin is trading so i can say stablecoins are traders coin

[Harriti]

Why stablecoins?
Stablecoins were initially invented as a way to combat the volatility of the cryptocurrency markets, and they’re doing a pretty stellar job of fulfilling their purpose.

So, how and why to buy stablecoins in 2020? It’s pretty simple: you’ll be incorporating a solid digital asset into your portfolio, that is backed by a major asset, and you’ll still receive all of the perks that come with other cryptocurrencies (like low transaction fees and fast transaction speeds). Find offerings on Tether (USDT) here, and TrueUSD (TUSD) here.

https://medium.com/@official_83664/how-and-why-to-buy-stablecoins-in-2020-46212a6546ab

wow, I can see certainty in stablecoins but the problem with traders is that they need to look for significant profits for a while. and 2019 is already a dead year, so 2020 will be a year of increased volatility and I think holding multiple stablecoins will not yield the maximum profit. Your post is pretty good, but I think we should hold bitcoins from now on, holding stablecoins is not really worth anything except being able to pay for some services.

[Mallyx]

Stablecoins are good for the price stability.
But keep in mind the fiat is owned by a 3rd party. You are not safe if a disaster happen.

I wouldn't hodl any stablecoins except for short term trading.

[JessicaVL]

Nice article! I believe people buy and hold stablecoins for two reasons mainly,

1. Capital protection - stablecoin give peace of mind in this volatile market. If someone wants to have exposure on crypto market and want to protect the capital at the same time, stablecoins are the ideal choice.

2. Trading tool - majority of the day traders used to face a big challenge in calculating their trades within a very short peeiod of time. But to excel in trading, one needs to calculate their profitability veey quickly as the market is very dynamic. However, with stable coin, the calculation becomes very straightforward and can be done with just a glimpse at the order book.

For me, I mainly use USDT for trading because it gives me an opportunity to quickly calculate the profitability of an open trade. Only a day trader will understand the relief.

Most people only use it for trading however I have a lot of friends which hold USDT for when they need to travel!
They use P2P marketplaces to get physical cash when they are in a country and the likes.
There are also so many people in war struck countries that want to hold the USD rather than there own currency, so USDT is great for them too.

[zhekinsp]

Nice article! I believe people buy and hold stablecoins for two reasons mainly,

1. Capital protection - stablecoin give peace of mind in this volatile market. If someone wants to have exposure on crypto market and want to protect the capital at the same time, stablecoins are the ideal choice.

2. Trading tool - majority of the day traders used to face a big challenge in calculating their trades within a very short peeiod of time. But to excel in trading, one needs to calculate their profitability veey quickly as the market is very dynamic. However, with stable coin, the calculation becomes very straightforward and can be done with just a glimpse at the order book.

For me, I mainly use USDT for trading because it gives me an opportunity to quickly calculate the profitability of an open trade. Only a day trader will understand the relief.

Most people only use it for trading however I have a lot of friends which hold USDT for when they need to travel!
They use P2P marketplaces to get physical cash when they are in a country and the likes.
There are also so many people in war struck countries that want to hold the USD rather than there own currency, so USDT is great for them too.

But anyone can't use their stable coin to buy anything in the countries you are mentioning so either they need to convert it into bitcoin which might be accepted somewhere compared to stable coin using an exchange or have to convert into physical money to buy anything.I would prefer gold rather than the stable coin for preserving the value of fiat savings.

[naikturun]

How and why? how to buy it, you can buy it at an exchange that provides a stable pair of points at their place. Some exchanges do this to make traders switch to fiat when the market goes down to avoid a dump.
that's the reason why people have to buy stable coins, some don't use them either.

[Xcode7]

You might be pretty familiar with the cryptocurrency markets, but sometimes stablecoins can still feel a bit elusive. They’re a type of cryptocurrency that are designed to reduce price fluctuations. It’s essentially a coin which has its value pegged to another asset, like fiat. We’ll be taking a look at how and why to buy stablecoins in 2020. Let’s dive in.

What is a stablecoin?
Most people imagine stablecoins as a coin that’s connected to fiat currency, like the US dollar. While this may be the case for some stablecoins like Tether (USDT) and TrueUSD (TUSD), it’s not true for all of them. You can create a stablecoin that’s pegged to pretty much any asset, including precious metals, other cryptocurrencies, or even a combination of the two.

Ultimately, the goal of a stablecoin is for it to be worth the same as the asset backing it. So, a stablecoin that’s pegged to the US dollar, will always have its value sit at around $1.

https://www.youtube.com/watch?v=pppOXGkWRow

Why buy stablecoins?
A lot of people are enamored by the volatility of the cryptocurrency markets, but others find it pretty stressful. Maybe you fall somewhere in the middle: You’re a crypto-fanatic, but all of the volatility in the market gives you a headache.

Stablecoins allow you to stay in the crypto-game, while combating the (sometimes wild) price fluctuations that occur in this exciting industry.

Stablecoins also allow you to use fiat like crypto. They’re pegged to fiat, so it makes it pretty simple to invest USD on crypto exchanges. Stablecoins can also provide perspective to those unfamiliar with the way the cryptocurrency market works. Most people will want to compare crypto value to fiat prices, so they can use stablecoins to do so on exchanges that don’t support fiat.

Stablecoins also provide the security and low transaction fees that are indicative of the nature of the crypto asset market. Stablecoins are a great way to achieve fast and affordable transactions of fiat-like assets. You’ll have the speed and cheap transaction fees associated with crypto, and you’ll also know the value of the stablecoin you’re using is the same as the fiat (or other asset) that it’s linked to.

https://www.youtube.com/watch?v=LRmIEBYDyUM

How to buy stablecoins
Tether (USDT) currently has a market cap of $4,129,579,780, the fourth largest according to CoinMarketCap (at the time of writing). TrueUSD (TUSD) has a market cap of $161,707,769 USD at the time of writing. They’re both doing pretty well at the moment. Luckily, getting in on the how and why to buy stablecoins in 2020, also provides you with some insight into the buying process on Vertex.Market, a peer-to-peer marketplace where users can launch their own offerings. You’ll find both of the stablecoins available on the marketplace, with some pretty fantastic deals. Simply sign up, and do your thing. No KYC necessary.

https://twitter.com/blckchaindaily/status/1201990683332091910

Why stablecoins?
Stablecoins were initially invented as a way to combat the volatility of the cryptocurrency markets, and they’re doing a pretty stellar job of fulfilling their purpose.

So, how and why to buy stablecoins in 2020? It’s pretty simple: you’ll be incorporating a solid digital asset into your portfolio, that is backed by a major asset, and you’ll still receive all of the perks that come with other cryptocurrencies (like low transaction fees and fast transaction speeds). Find offerings on Tether (USDT) here, and TrueUSD (TUSD) here.

https://medium.com/@official_83664/how-and-why-to-buy-stablecoins-in-2020-46212a6546ab

Helpful article, I have another reference for 2020, I hope this is all in line with expectations regardless of the twists and turns of the market price, and I don't just rely on coins and big projects. And I will try to share with my friends so they know about this info

[michellee]

for me the strongest reason to use stablecoin is to hold funds when market conditions are not favorable, because compared to hold but prices continue to fall then i will divert more funds with stablecoin and i'm sure some people will use a method like me too

If you do that, you can be able to save your value in crypto from the decrease. Besides that, you can be able to buy any coins which are down at a low price. To buy stable coin can prevent you from the dump that can come anytime, but if you are holding a stable coin for a long time, you will not see a profit in your account because the stable coin will not increase decrease too high.

[naseem_essa]

This is a really great article and I think we'd have much more people in the crypto world if they knew that coins like these existed! Headlines of Bitcoin tanking and seeing volatility present as soon as they open a site like coinmarketcap really dissuades many perhaps not so clued up individuals who want to invest.
 

[Pinkris128]

In my own opinion, stable coins are not that good to buy because it's not profitable. Stablecoins is just like fiat currency that it is only good for making online transactions and good as a storage when we are facing a bear market to avoid having huge losses, but i don't still recommend buying a stable coin because i believe most cryptocurrency will increased it's prices in the year of 2020 like bitcoin.

[Dickiy]

my reason for choosing Stablecoin is that it allows my assets to stay awake from very active prices, for example when I want to trade on cryptocurrency then I automatically have to buy it in my own currency by choosing bitcoin or altcoin, if I want to trade daily then of course I choosing Stablecoin as my trading transaction tool to maintain my funds stable in one currency, if I don't choose Stablecoin then I will have two risks of loss in daily trading.

[Mallyx]

In my own opinion, stable coins are not that good to buy because it's not profitable.

Stablecoins wasn't made to be profitable anyway.

[tsaroz]

There are two reasons for me and for most of the people to buy stabecoin.
1. To make a profit in volatility. It's a temporary buy where I sell my crypto into stablecoin on decreasing market and buy back on increasing market.
2. To keep my liquidity ready for unforeseen condition. I generally put this money on NEXO as they provide better interest than banks and the coins are always ready to trade.

[nreal]

At first I bought stablecoins like USDT to avoid market volatility, But I found out that some exchanges allow me to deposit USDT and enjoy very flexible term interest rates while depositing USD at banks will not earn interest.

[mrdeposit]

In my own opinion, stable coins are not that good to buy because it's not profitable. Stablecoins is just like fiat currency that it is only good for making online transactions and good as a storage when we are facing a bear market to avoid having huge losses, but i don't still recommend buying a stable coin because i believe most cryptocurrency will increased it's prices in the year of 2020 like bitcoin.

You can diversify your portfolio between stable and volatile coins. So you will have the opportunity to buy when the price is down and to sell when the price is up. Otherwise, there is a high chance of misunderstanding the situation in such cases, therefore you may miss out on the real opportunity. As you know there is nothing definite in crypto, anything can happen at any moment.