.How To Invest in Cryptocurrencies - A beginners Guide | Steemit Crypto Academy | Lesson 6
From the analysis that I have gathered so far through the studying of one of the cryptocurrencies that I will be investing in 2021 called STABLECOIN. I will be writing on an article about this cryptocurrency; the uses, benefits, purpose and the market response. Please do well to read and comment.
STABLECOIN
Stable coin is one of the cryptocurrency that is notable by many investors around the world due its uniqueness.
Though it is not known by all but from analysis it is said that stablecoin has the tendency of becoming one of the leading cryptocurrency in the future. It has a significant stablilty in the medium of exchange and price and cash managementdigital assets.
The fact that there is less or no flunctuation in price is what will encourage investors to put in their funds without fear of loss or scam. Unlike Bitcoin which changes in its price value, stable coin has become an asset that can maintain stability for a period of time.
Stablecoin may not be one of the cryptocurrencies that are leading in our world today but analysis on stablecoin shows that with time it will be acceptable.
SOCIAL REACH
Stablecoin specifically exist so that it will benefit the users from digital currencies such as low-cost and efficiency in transaction of funds, and at the same time it removes the possibility of high volatility in prices which is the major problem that other cryptocurrencies face.
It also make room for the transactions to be open and visible encouraging credibility and accessiblity among the investors. However, investors are not afraid of investing because they are aware of the rudiments that involve in every digital transaction they made on every investment.
Stablecoin specifically was created to also maintain stable value which has always being an issue to other cryptocurrencies. Because of this, it is now possible to invest or store your funds in a stable assets without fear of flunctuation or changes in the system.
PROJECT PURPOSE
Stablecoin is not created just like other cryptocurrencies. Its efficiency, low-cost, high credibility and stability in price value has made it stand out among other cryptocurrencies.
The introduction of stablecoin in the system has made transaction easier in the sense that investors don't need a middle man to ensure that their transaction is accessed and protected. Whoth this cryptocurreny, much regulation is no longer needed to ensure the smooth running of funds, because it is backed by a digital block chain system which make every investor to access their funds without restriction.
Sometimes the cryptocurrecy market can have a downturn, but when you trade on stablecoins such as DAI there is no such thing as that. Investors can easily store funds without fear of decrease in their profit rate and for this reason stablecoin has become an outstanding cryptocurreny that the world will soon queue into.
MARKET RESPONSE
The major reason why people trade is to make profit, so profit-oriented business or firm that is profiting or making effective gain is liable to shutdown.
For this reason, there is always a slow and ineffective process when it come to sending money to someone using other cryptocurrencies. Stablecoin has exceptionally handles such issue in the sense that it provides a way to bypass some legal authorities thereby making the transaction to be fast and reliable.
There is nothing that as safe as an investor who is trading in a stable environment. For this reason, stablecoin is appreciated in the crypto market in the sense that it maintain stability in assets value.
Also in terms of security, stablecoin is provided with block chain technology which makes it almost impossible to be hacked or scammed.
FACTORS SUPPORTING MY DECISION ABOUT STABLECOIN
SECURITY
Unlike other cryptocurencies, stablecoin is backed up with decentralized system which enables it to be rigid in its security.ACCESSIBILTY AND CREDIBILITY
Stablecoin is easily and readily accessible because it is open to only two people who initiate the transaction, it does not involve a y third party.
It is also credible because it is less volatile, making investors to have great trust and confidence in storing their funds in stablecoin.STABILITY IN ASSETS
There is no flunctuation in price when it comes to stablecoin. It has there is every tendency that every fund or assets store in stablecoin will remain stable even when there is a downturn in the market.
I solemnly believe that there will come a time when stablecoin will dominate every cryptocurrencies in the market. As the cryptocurrecy grows there is every tendency that there will be a significant increase in stable coin usage. A cyptocurrency that is easily accessible, reliable, security concious, stability in price will soon dominate the market soon.
I have strong hope on stablecoin; it is for the future.
