knowledge What is the difference between stable cryptocurrency and variable cryptocurrency ?

[Emma William 2399]

What is the difference between stable cryptocurrency and variable cryptocurrency ?

 

 

As we all know digital currencies are cryptocurrencies on the blockchain network that have been programmed to facilitate payment operations and one of the most famous of these currencies is Bitcoin, which was the first digital currency that was created in 2009.

After that, many other cryptocurrencies were included, as these cryptocurrencies were divided into fixed cryptocurrencies and variable cryptocurrencies.

Variable cryptocurrencies

The most important characteristic of these currencies is their price change very quickly!
That is, it is never stable!
But why ?

 

Bitcoin has witnessed major price changes throughout its history, for example, the currency's price rose from several cents to $ 17,000 in 2017.

And there is also the ether currency, which is one of the largest and most famous of these currencies, which also started at a price of several cents and recorded nearly 1,000 dollars in 2017.

Thus, the price of these currencies changes from time to time according to supply and demand, in addition to several other market factors

Stable Coins

 

Fixed cryptocurrencies are a digital currency that has been encrypted and programmed on the blockchain network, but unlike variable currencies such as Bitcoin, these currencies maintain their price despite market fluctuations.

What are these currencies used for?

Saving profits: resulting from the rise in the changing currencies in what is known as freezing profits among traders

Payment operations: as they are used to transfer money from person to person like other digital currencies, but with the guarantee of the stability of the currency's price when converting it and the stability of the amount paid

The most famous fixed cryptocurrency

1-USDT
2-TUSD

3-DAI

Question : Do you think that the presence of fixed cryptocurrencies is necessary in the cryptocurrency project ?

[Dorjoy12 8962]

Stable coin is badly needed for crypto trader to safe their profit.. Because you can see bitcoin price now 16k usd plus and eth price now around 470 usd which mean those trader who trade on this two coin when it price was low then now surely they have huge profit so to safe their profit its necessary to convert their coin to stable coin as usdt, usd, dai and so on...  Again stable coin is the another way to earn huge profit too           

[Emma William 2399]

Just now, Dorjoy12 said:

Stable coin is badly needed for crypto trader to safe their profit.. Because you can see bitcoin price now 16k usd plus and eth price now around 470 usd which mean those trader who trade on this two coin when it price was low then now surely they have huge profit so to safe their profit its necessary to convert their coin to stable coin as usdt, usd, dai and so on...  Again stable coin is the another way to earn huge profit too           

Yes, it is true and I think that the most popular people using fixed cryptocurrencies are traders!
Profit stone process can only be completed through the use of fixed cryptocurrencies!
Your example of Bitcoin is a vivid and realistic example! I think that now is the right opportunity to use fixed currency in order to reserve the profits that were taken from the rise in the price of bitcoin!

[Dorjoy12 8962]

1 minute ago, Emma William said:

now is the right opportunity to use fixed currency in order to reserve the profits that were taken from the rise in the price of bitcoin

Only well explained trader often use this strategy to safe their profit so that they can buy again any currency when price go down or market go down..   For this reason at the time of corona usdt trading volume was much higher than now as that time all the currency price down 50% Almost..            

[RonaldB 48]

I do not have much knowledge in the field of trading, but according to my personal opinion, stable cryptocurrencies cannot be profitable through trading or exchange, unlike variable cryptocurrencies, which can be well earned by changing their prices at any moment.

[Mark wood 2970]

@Emma William I really appreciate your efforts I can see your posts you make such attractive posts and easy to understand actually I wasn't know that USDT TUSD DAI are fixed cryptocurrency so that's what I'm getting here from different members, good work keep it up and best of luck..

[SuperCrypto 7193]

Stable currencies are important in the cryptocurrency market as they lead the market in the event of a market downturn, and the red color spreads among other currencies, as investors are surprised to transfer their money to these currencies for fear of further expected losses.

[Emma William 2399]

Just now, SuperCrypto said:

Stable currencies are important in the cryptocurrency market as they lead the market in the event of a market downturn, and the red color spreads among other currencies, as investors are surprised to transfer their money to these currencies for fear of further expected losses.

Yes, I think that fixed cryptocurrencies also have a negative role in withdrawing purchasing power from the market!
So it's good and bad at the same time!
We must know when to use it!
The most important thing is that we use these currencies in order to protect ourselves from the decline of digital currency prices when Bitcoin moves

[Omar98 916]

Having and dealing with stable cryptocurrencies could help a lot of people while trading in huge amount of money, especially nowadays we have noticed how much the market was unstable so in order to keep the profits of that huge amount of money the same without loosing it it would be a good idea to change in to a stable cryptocurrency at least until the moment of buying.

In that case we can be more relaxed while trading. 

[Zaino34 0]

There are many digital currencies, some of them are worthless and some of them have great value and the price of digital currencies changes according to supply and demand. The more demand for them, the higher the price of the currency.

[Mansoor sumaan 29 0]

Oh your post was too much informative before reading your post i didn't have any concept and even don't know that there is some stable currencies are present i firstly think that all currency vairy as you said according to the demand and market . Variable currency have their own advantage because you can invest and try your luck. But if you want to be safe and don't want to try luck you can go for stable currency

[velasco19 1753]

You are right stablecoins are necessary in the world of cryptocurrencies as a way to take profit when you want or even keep your capital safe in downtrends and buy again.

[Gwataman 147]

The difference between stable cryptocurrency and  variable cryptocurrency is thatstable coin is a new class of crypto currency that attempts to offer price stability and are backed by a reserve asset while variable cryptocrypto currencies that are  fluctauting in value their value varies

 

 

[MuhammadSh 3067]

Knowing the differences between both of these types is really important for each one interested in this crypto world ,especially for the cryptocurrencies traders! using stable cryptocurrencies is the most important thing for me as a trader because there are sometimes i need to be out of the volatility of the market! the best strategy is that keeping your capital in a stable coin and enter the market only when you are sure you will earn profits in a short time.. then you should convert your profits to stable cryptocurrencies again in order not to lose them.. your informative topic was well explained and it's really important for each beginner to know everything related to this subject..

[Jromz 2158]

Really nice and acccesible explanation about the differences between stable and volatile cryptocurrencies. As for the question you're asking, the presence of stable coins may not be necessary for the whole cryptocurrency ecosystem, but they're indeed a widely used tool in speculation, which is currently the main activity linked to cryptocurrencies

Edited November 15, 2020 by Jromz
wrong word

[Emma William 2399]

17 hours ago, MuhammadSh said:

Knowing the differences between both of these types is really important for each one interested in this crypto world ,especially for the cryptocurrencies traders! using stable cryptocurrencies is the most important thing for me as a trader because there are sometimes i need to be out of the volatility of the market! the best strategy is that keeping your capital in a stable coin and enter the market only when you are sure you will earn profits in a short time.. then you should convert your profits to stable cryptocurrencies again in order not to lose them.. your informative topic was well explained and it's really important for each beginner to know everything related to this subject..

Yes, this plan that I mentioned is correct in order to do short-term trading, but to be realistic, this is very difficult for long-term traders!
As for me, I prefer short-term trading for this movement! I do not want to keep my money at risk! I like to enter into a trade, even if with a small profit, to avoid very large risks
 

 

17 hours ago, Muhammad Umair Bashir said:

Thanks for all your great information about stable currency and cryptocurrency. Of cours Very large difference between cryptocurrency and stable currency. Cryptocurrency is very expensive and using for online trading and investment and for exchange. But stable currency is safely and there's no risk.If any person is good in economics level and strategies  .They will invest in variable price , they invest in small and earn more . What currencies are very good currencies for exchanging and investment. Thanks for all your great information about stable and cryptocurrency.

Yes, the risk-free feature in fixed cryptocurrencies is the most important characteristic of it, so we find it popular! People use it when they want to escape from risks and sudden market moves

[Noghran 0]

I think it is a very necessary existence.
It represents a kind of guarantee for the investors and this makes them feel safe
The large and rapid change in prices may cause the investor to feel fear of experiencing a large loss or cause hesitation regarding the issue of money exchange.
And the ability to freeze profits and exchanged amounts makes them trust the world of cryptocurrencies as an ideal world for investment!

[bino 3576]

I think the stable currency is necessary. Because unlike other currency who kept on changing time by time, people tent to stop buying those currency because they are afraid to lose money if its go down in a row. A stable currency is good so that others who have an impatient can do a cryptocurrency too. 

 

 

 

 

 

ightx

[abdullah553 1981]

On 11/14/2020 at 10:57 AM, Emma William said:

What is the difference between stable cryptocurrency and variable cryptocurrency ?

 

 

As we all know digital currencies are cryptocurrencies on the blockchain network that have been programmed to facilitate payment operations and one of the most famous of these currencies is Bitcoin, which was the first digital currency that was created in 2009.

After that, many other cryptocurrencies were included, as these cryptocurrencies were divided into fixed cryptocurrencies and variable cryptocurrencies.

Variable cryptocurrencies

The most important characteristic of these currencies is their price change very quickly!
That is, it is never stable!
But why ?

 

Bitcoin has witnessed major price changes throughout its history, for example, the currency's price rose from several cents to $ 17,000 in 2017.

And there is also the ether currency, which is one of the largest and most famous of these currencies, which also started at a price of several cents and recorded nearly 1,000 dollars in 2017.

Thus, the price of these currencies changes from time to time according to supply and demand, in addition to several other market factors

Stable Coins

 

Fixed cryptocurrencies are a digital currency that has been encrypted and programmed on the blockchain network, but unlike variable currencies such as Bitcoin, these currencies maintain their price despite market fluctuations.

What are these currencies used for?

Saving profits: resulting from the rise in the changing currencies in what is known as freezing profits among traders

Payment operations: as they are used to transfer money from person to person like other digital currencies, but with the guarantee of the stability of the currency's price when converting it and the stability of the amount paid

The most famous fixed cryptocurrency

1-USDT
2-TUSD

3-DAI

Question : Do you think that the presence of fixed cryptocurrencies is necessary in the cryptocurrency project ?

Fixed currencies are currencies based on similarities with the local currencies of countries in general and are traded on the forex markets, and non-fixed currencies are currencies whose price changes, such as bitcoin and ether .....

[Nicole018 4548]

The pictorial presentations used is really good. It would definitely attract and absorb many users of this post. I really appreciate the effort. Explanation on the topic states that the users can choose between variable and stable currency according to their own interest. Always choose trading which is best suited for you planning and management. So it is necessary that users make conscious effort to make the right choices regarding stable and variable cryptocurrencies.

[CryptoLegendry 505]

We must know when we should use fixed cryptocurrencies and when we should use variable cryptocurrencies! Therefore, I will explain some points that may help members here
1- When bitcoin moves its sudden movement, we must immediately convert to use fixed cryptocurrencies (i.e. converting bitcoin to USDT)
 2- When we find that the market is in good condition, we convert fixed cryptocurrencies (USDT) into variable cryptocurrencies such as (DOGE, XRP, WAVES)

[Ninon 0]

I don't have much knowledge within the field of trading, but consistent with my personal opinion, stable cryptocurrencies can't be profitable through trading or exchange, unlike variable cryptocurrencies, which may be earned by changing their prices at any moment.

[TimopheyKa 3900]

Let's start with the fact that a stable cryptocurrency is usually taken in order to save your funds, because the cryptocurrency that has the ability to change the price, for example, like bitcoin, which can make big waves, you can both lose and earn a lot on it!

[Furious valkary 495]

Thank you for your information.

Stable cryptocurrencies are those whose values remains the same and it is very good to hold for a long time and the unstable cryptocurrencies are those whose values varies with the changing of the time they are good for trade.

[Royal wizard 0]

Before you didn't you are poster I didn't have a concept of stable and variable cryptocurrencies.

Stable  currencies price remains the same and you can hold it for a very long time and the other currencies like variable currencies are good to trade and get profit.