The cryptocurrency market offers hundreds of digital assets to buy and trade. They all are released by different projects and have different purposes. Some assets are issued by crypto exchanges and serve to ease the use of those services; some tokens are released by blockchain game platforms; some serve for facilitating money transfers worldwide, etc. 
Crypto assets are actively used for trading due to their unstable rates and high volatility. Trading is crypto buy sell at different prices. It allows for generating income in the shortest time frames – one deal may last for a few seconds to several months, depending on the trader’s strategy.
However, some crypto coins do not demonstrate price volatility, and their rates are always around one dollar or one euro. You have probably noticed such digital coins before. So today, we will discuss the essence of a stablecoin.
The Most Stable Crypto
Stablecoins are digital currencies with their value linked to one of the traditional currencies, such as the dollar, euro, etc. Traditional finances are obviously much more stable than any crypto coin, so stablecoins are built in such a way that their value is “supported” or “backed” by traditional money.
Why do stablecoins exist? What is the sense of dollar-pegged crypto? Here are some use cases. The most popular stablecoin, Tether USDT, is used by people:
- To avoid long and costly money transfers around the world. Banks are always too delaying the process of cross-border transfers, and besides, commissions for such operations and enormous. Sending money via USDT is quick and takes minimum fees. You can do it just in a few clicks on your smartphone using any cryptocurrency exchange application.
- Traders convert their crypto savings to a stablecoin to control their risks. For example, the market is dropping, and you want to save your investments in dollar equivalent, so you buy a stablecoin and hedge risks.
If you want to learn about trading and start making money from cryptocurrencies, welcome to the WhiteBIT crypto platform. It allows a demo trading option for you to understand how the market works and receive needed skills in trading.
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