You might be knowing about currency, isn’t it? Well, we have known regarding this since childhood. We see we use it in our day-to-day lives.
This physical currency: money is really valuable and applicable to our day-to-day life. Well, what’s so amazing about that we are discussing this? This might be the question in your mind.
Till now this was all just to give a base of understandability and to kick start with the next level of currencies and such. You know what? Well, it’s about cryptocurrencies.
Cryptocurrencies are the digital version of money. It’s the digital asset just like the physical money, the note, and the coins we use. Well, to be more particular we are here to discuss the Stablecoins.
Uhmm… Can you guess it, what is this? It is a cryptocurrency. Now, do you get that? It is a class, a type of cryptocurrency. Let’s start it simple and clear. Stablecoins! Must have some stability. Well, it does have stability. In other words, it actually provides stability.
Stablecoins attempt to peg their market values and provide stability to some extent without many fluctuations. Oh, that means it acts like a limit to the exchange rates on the-quantum-ai.com/nl/login and related scales.
Stablecoins sound safe when you have an idea of long term crypto-investments. They even provide secure transactions and are acceptably bridging between fiat to cryptocurrency usages.
Secured currency and money with good long-term crypto-investments, this is good to adopt when you wish to and are in need of. It is lucrative yielding high opportunities for debt processes.
They actually offer a range of high-interest rates. And those rates could be as high as four times that of savings accounts with top interest rates if you know. And, it is also offering an interest rate almost twice that offered by fiat currencies.
There are certain examples of stablecoins that we ought to discuss right here. This will help you understand more about it. For you could consider the Tether (USDT), True USD (TUSD), Paxos Standard (PAX), USD Coin, and more such.
The above-mentioned examples of stablecoins comprise the best of the stablecoins . There also types of stablecoins that you might feel interested in.
There are four main types of stablecoins.
- Fiat-collateralized stablecoins
- Commodity-collateralized stablecoins
- Crypto-collateralized stablecoins
- Non-collateralized stablecoins
Well, this is again a very descriptive discussion about the types of stablecoins. We might not be able to discuss here but just to mention.
There is another relevant query why we need to use stablecoins? Well, the very obvious reason is that they are non-volatile while there are other cryptocurrencies that are subject to extreme price volatility.
Overall, stablecoins are reasonable to be invested in since we can get the stablecoin. It is asset-backed that helps maintain its stability of prices and avoids volatility.
This was all about Stablecoins and what they are. If you still have any queries feel free to ask and let us know how helpful was this discussion to you.
