What are the advantages of stablecoins? - For Beginners - CryptoTalk.Org Jump to content
MiguelA

What are the advantages of stablecoins?

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Stable cryptocurrencies offer more security and confidence to investors; although they also have an important weakness, because, although they are programmed to be used in the blockchain, decentralization is not total, as is the case with cryptocurrencies, since stable crypto assets depend on the price of a traditional currency which, in turn, is controlled by a central bank.

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The main advantages of stablecoins in my opinion is that they even though they are cryptos, they offer little volatility compared to Bitcoin for example, so while making investments or at least any transaction with this kind of cryptos the money value should not change much, of course this is good but normally you should not expect big profits because the coin is designed to stay more on less on the same price, bounded by the fiat currency.

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Thank you for this valuable information. It has served me as a beginner .... I hope for more of this information

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I really do not have knowledge about this subject, it is very good that you continue to place topics of interest that for many, as in my situation, we do not know much really grateful.

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The Dai stablecoin can provide stability in the turbulent world of cryptocurrencies. Dai is pegged to the US dollar and backed by an excessive collateral locked in Maker's Vault. When the market is very volatile, Dai allows users to store their value without leaving the crypto space.

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Stable currencies are the currencies that occupy the first positions in the market cap that come after Bitcoin and have a more stable price than other currencies and have higher levels of safety than the rest of the currencies.

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The advantages of stable currencies are a brand, it is safe to hold, for example, the US dollar, a large company standing behind it so that it does not fall, surrounded by all currencies naturally

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Stablecoins have the benefits of distributed ledger technology, providing speed and convenience in accessing other currencies and settling payments in potentially a global market. 

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Stablecoins are safe than bitcoins and other currency because it gives stability and it is secure . Main advantage of stablecoins is that they are immune to sudden price fluctuations in market

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The advantage is that it will not become volatile like bitcoin or etherum, that means that if you want to have cryptocurrencies so as not to fear price drops, stable currencies make it easier to adapt to cryptocurrencies and pay with them why not there is loss.

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The advantage of a stable coin is that, there is no lost in them is either you make profit or you gain your capital back 

The most recognized stable coin is the bitcoin, very recommended. 

The most recognized stable coin is the bitcoin and is very recommended to every beginner. 

The most recognized stable coin is the bitcoin and is very recommended to every beginner. 

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Stable currencies are an opportunity to protect our income from market volatility. If we want to maintain our profits it is highly advisable to invest in any of them. In addition, stable currencies have a commission for each transaction is much lower than that of volatile currencies, such as BTC.

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Stable coins is like normal crypto currencies like usdt whichs price is almost same but i never found these very stable crypto currencies profitable at any moment because we choose this unpredictable market because his dumps and pumps .


Thanks Cryptotalk for teaching me about the cryptoworld . Now i  am earning good earnings from internet . 💗 

Special thanks to @Bigpat for helping me .

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Stablecoins find stability in value by anchoring themselves to other elements. It can be thought that all stablecoins have a similar algorithm but that is not true.
Stablecoins are protected by a large number of mechanisms, with different pros and cons, which are very important to know.
There are usually four categories:

1- Stablecoins backed by fiat currencies
This is a common way to safeguard the value of a stablecoin.
Basically, it is a digital version of the fiat currency.
It has the same value as the real currency that is backed by banking systems.
It is a simple currency but it eliminates the feature of decentralization.
Positive aspects
-Great stability, since the fiat money that supports it has the support of a government.
-Very simplicity, the aspects of its operation are understood very easily.
Negative aspects
-Being protected by fiat money, it becomes centralized, which goes against one of the main attributes of blockchain, getting rid of centralized systems.
-You will have to trust the entity that backs your stablecoin, this contradicts the basis of crypto assets.
-Regulations, when using fiat money as backup, the holder of the stablecoin must adhere to rules and regulations.

 

2-Backed by physical assets
It is backed by materials such as gold, gas, oil, among others. Always for a product that maintains a stable cost in the market.
Gold for example is in high demand and highly negotiable.
Therefore, some stablecoins use it as a backing for their value.
Coins anchored to gold will maintain a fixed value assigned to each coin at all times.
A stable coin can represent one gram of gold stored in a high security vault, or in the hands of third parties.
You should take this into consideration if you want to invest in this kind of cryptocurrency.
It is not as popular an investment option as fiat currencies, but it is a good option.
Positive aspects
-They are backed by a physical, real and tangible asset. You can exchange your stablecoins for the product at any time.
-The cost almost does not vary, it has an extremely high price stability. It is a very safe long-term investment source.
-They offer great market liquidity.
Negative aspects
-You need a large number of intermediaries, such as sellers, custodians and others. Its consequence, ends up becoming a centralized system.
-To be sure that everything is under control, you must attend audit sessions, something that takes a long time and contradicts the main ideas of cryptocurrencies.

 

3-Backed by other crypto assets
Stablecoins can be backed by other cryptocurrencies, such as Ethereum or Bitcoin.
Almost never a single virtual currency is used to protect the stablecoin, diversification is chosen which reduces volatility.
They have one of the main characteristics of digital currencies, decentralization.
Positive aspects
-The operations are stored in a register, they offer total transparency.
-You can convert your cryptocurrencies to others on the network in a very simple way, this produces an increase in its liquidity.
-You can use them to conduct business. Its operation is very efficient.
-It has a decentralized and reliable system.
Negative aspects
-There is a risk of instability. Because it is backed by crypto assets.
-The minting process is very complicated.

-The settlement can be instantaneous, prices can at any time.

 

4-Stablecoins without backup
It does not present support of any kind, they make use of an algorithm to stabilize its value.
The expansion and limitation of currencies on the market is controlled. If demand rises, more currencies are created in order to stabilize the rise in asset costs. The algorithm aims to keep the value close to the dollar at all times.
Positive aspects
-Because it exists through algorithms, we can qualify it as a decentralized system and without influence from third parties.
-You do not have assets to support its value, you do not have to worry about price variations.
-Statistically, it is the most stable stablecoin of all, the algorithms ensure that there are not many or few coins in the market.
Negative aspects
-Because the algorithms are responsible for making the entire system work, it becomes a very sophisticated and highly complicated process that can fail at critical moments.

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Stablecoins относятся к классу криптоконверсий, которые предлагают стабильность цен и/или подкрепляются резервными активами. Они предоставляют криптовалютным трейдерам и инвесторам простой и простой способ сохранить стоимость, не теряя при этом колебания цен.

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It gives the advantage os crypto with the stability of another currencies, protects the money of the inflation, give you a easy access to buy another crypto with it, great cryptos and great value

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simply that it will not have a volatility like bitcoin or eth has for example, a posteriori there may be more stablecoins than the stock market, in conclusion the future will be in the stable coins.

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Stable currencies always avoid you losing, especially when a sharp decline in digital currencies, then immediately turns into a stable currency

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Stablecoins are a type of digital asset that maintains a stable price pegged to another traditional asset, such as the US dollar. Stablecoins gained a lot of popularity for offering the ability to enter the crypto world without having to expose yourself to the price volatility of popular digital assets like Bitcoin.
Most stablecoins set their value in relation to the US dollar, as it is the most widely used fiat currency in the traditional international market.

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Thank you very much Brother for information, information is always welcome, it is very useful for beginners and of great educational value to be useful in this great forum called cryptotalk for my part it is a great topic of interest
Good luck to all and a big greeting

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Stable coin has many advantages. Stable coin has the ability to provide a trading medium. Stable coin is high levels of volatility. Stablecoin backed by fiat currencies 

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