Stable Coins

Stablecoins are cryptocurrencies that peg their values to other assets to avoid massive market volatility. When Bitcoin appeared, many investors envisioned it as a means of payment for everyday products like pizza. For instance, Laszlo Hanyecz paid 10,000 BTC for two pizzas in 2010. At that time, BTC’s value was dismal and below one dollar. However, the same order would cost someone over $600 million today. In the past decade, Bitcoin has increased in value exponentially. However, it was also the…

Stablecoins are cryptocurrencies designed to minimize the volatility danger of the notoriously unstable Crypto market. Theoretically, a stablecoin can be pegged to a cryptocurrency, fiat money, or exchange-traded commodities (such as precious metals or industrial metals). Since the advent of USDT - Tether in 2015, traders have felt a greater safety from the market's constant volatility. Stablecoins today are blockchain-based and usually tied to traditional assets, currencies, or a basket of assets and currencies. USD is traditionally the most sought-after…

Bitcoin's massive market crash in March rocked the whole crypto market. It introduced a long period of volatility. Consequently, several altcoins plummeted too. Things were different, though for stablecoins that experienced impressive gains over Bitcoin (BTC). Hedging Against BTC Many crypto traders entered the stablecoin market to hedge against Bitcoin's increasing volatility. Tether, the popular and highly controversial stablecoin dominated transactions. According to BitMEX, the BTC/USDT trading almost tripled in March (21.6 million BTC). It had previously reached a value…

Decentralized Finance, more commonly known as DeFi, is the newest trend in the cryptocurrency sector. After "Colored Coins," Smart Contracts, and ICOs, DeFi has taken the limelight. It has opened the door to a whole new branch of decentralized technologies. Among the hundreds of projects focusing on bringing Decentralize Finance to the masses, none has been as successful as the MakerDAO Network. The Need for MakerDAO The MakerDAO is a decentralized smart contract platform on Ethereum. It is one of…

Crypto stablecoins present an efficient and easy way of managing crypto volatility. Volatility in the crypto market is often regarded as the boon and bane of crypto trading. While on the one hand, it allows traders to accumulate substantial profits, it can cause significant losses to crypto traders or even lead to missing a perfect opportunity to trade. Stablecoins function to cushion investors from intense volatility witnessed in the crypto market by providing a less volatile means to employ in…

Cryptocurrencies are units of exchange and hold value because people decide they do. While any other currency or asset type does not back others like Bitcoin, stablecoins are backed by such currencies or assets to stabilize them against the highly volatile nature of the digital currency. According to the law of demand, all other factors withstanding, highly-priced resources have less need. Similarly, the law of supply states that the quantity supplied is directly proportional to the price. Therefore, this means…

In a decentralized world, price fluctuation is something that crypto enthusiasts have become accustomed to, especially the emotional roller coaster of substantial price swings. The crypto market can be described as pirates at sea, where the bigger ships try to conquer the smaller vessels to amass wealth and treasures. Crypto enthusiasts found a way to curb all these highly volatile crypto markets by introducing stable cryptocurrencies, which serve as a reliable hedge during market fluctuations. Three basic kinds of asset-backed…

Data reveals that the overall market cap of stablecoins stands at over $140 B as of December 22, 2022. On top of that, the trading volumes gradually rise as the crypto instrument closes at the $900 billion mark.  Investing in the digital asset world has become difficult for goal-oriented minds. However, the onset of stablecoins has proven to be a valuable tool for trading today. Stablecoins can be described as cryptocurrencies tied to other valuable assets or commodities. Therefore, the crypto…