Volatility, a term to describe most of the cryptocurrencies, but not for Stablecoin, and as the name described, they are stable even when the crypto market is dipping. So what makes these coins stable? These cryptocurrencies are backed by valuable assets like fiat currency, other cryptocurrency or even gold. The system also use extra computations to maintain the stable value of these coins. Most importantly, these coins are also available on crypto-platforms.
In the following, there will be the facts regarding on Stablecoin.
1. What makes Stablecoin great?
First of all, Stablecoin is different from other type of cryptocurrencies, it is made to be stable and to maintain a value. Moreover, it is decentralized, so it does not involve centralized banks during the transactions and the process would be much faster, transparent and could possibly come with minimal fees. Additionally, the high level of security and privacy of the financial data making it trustable in the market.
In terms of investment, these coins are suitable for starters. The value of the coins does not fluctuate or are as volatile as other types of cryptocurrencies. Not to mention, it offers better earnings on interest rate when investing in Stablecoin.
Last but not least, accessible is an advantage. As the Stablecoin does not require a centralized bank to hold, this allows no geographical restrictions during trading and holding of assets as some part of the globe might have difficulties in getting their hands on specific countries’ currency and could also be that their country’s currency is not as steady.
2. What is the downside of Stablecoin?
Nothing is perfect, so is Stablecoin. Because Stablecoin is one of the digital currencies, and just like any digital properties, they are vulnerable to hackers. Even though it has high-level security to prevent normal attacks, smart hackers will improvise and are persistent until they achieve their objectives.
For more blogs post, please visit here.
