February 21, 2021 | AtoZ Markets – A ‘stablecoin’ is a unique class of cryptocurrencies that are backed by a reserve asset and whose main objective is to offer price stability. Stablecoins have garnered significant attention as they set out to offer traders the best qualities of digital currencies and fiat currencies.
It provides fiat currencies’ stable valuations that are free from volatility and the instantaneous processing and security or privacy of crypto payments. Altogether, there are four categories of stablecoins: fiat-backed (the most prevalent of the bunch), crypto-backed, commodity-backed, and algorithmic.
The goal of stablecoins is to tackle price fluctuations of the crypto market by way of tying the value of cryptocurrencies to other assets. Specifically, assets that are much more stable, like fiat currencies. Fiat is the conventional government-issued currency that is used on a daily basis, such as dollars and euros. More often than not, these currencies tend to maintain stability over time.
With stablecoins increasing in popularity, it only makes sense that people start looking into how they can buy and sell them. There are plenty of platforms for exchanging conventional crypto, but what about stablecoins?
1) Gold Exchange
Gold Exchange is a digital currency exchange that allows its users to buy, trade, and sell stablecoins, particularly its native token, GoldCoin. Known for being the largest trading platform in the world and having over 20 years of experience in trading, Gold Exchange ensures those who use it the ability to trade with confidence.
Traders are able to establish levels of profit and loss by either utilizing stop loss or taking profit limits whenever they trade. They can determine the maximum amount that they are willing to risk when it comes to speculating the price or setting a price at which they would like to make a profit. Various future orders are available on this platform, including Buy Stops and Buy Limits.
Coinbase is a secure platform that makes buying, selling, and storing cryptocurrency an easy process. Over two years ago, they announced that customers were permitted to buy, sell, send, and receive USDC on the Coinbase platform. A USDC is a token whose worth equates to 1 USD. Its value will remain stable against USD, hence the name “stablecoin” for this particular coin type.
In contrast with traditional cryptocurrencies, traders can take comfort in the fact that the value of their USDC wallet will not fluctuate erratically. In fact, according to Coinbase, using it will open up new doors and use cases.
Traders are allowed to hold USD in their Coinbase account, though the platform advises that you should always try to control the keys of your wallet and transfer your coins to a safer wallet. Otherwise, if someone were to hack into your account, you could wind up with an empty wallet. They recommend a Ledger wallet or, at the very least, a software solution (ex. MyEtherWallet).
If a trader wants to short cryptocurrencies and do so without sending their USD back to their bank account, they can convert their tokens to USDC. With this method, it will be much easier to purchase cryptocurrencies again later.
PayTrie is a Canadian platform that deals with virtual currencies. Both crypto novices and crypto experts alike can benefit from the platform as it provides a very simple way in which users can purchase their desired cryptocurrencies in the span of a few minutes.
The processing of payments on PayTrie is done in a secure fashion through Interac e-Transfers. Stablecoins are delivered to users’ wallets or exchanges as soon as the payment is received. Funds will sometimes be transferred in as little as one minute; it mostly depends on which bank the trader uses. Furthermore, with the minimal amount of time that PayTrie holds the users’ crypto, the platform can provide risk-free services. It is by far the most secure way someone can purchase cryptocurrencies in Canada.
The process is easy. First, the trader selects the type of stablecoins they want to buy and the amount. Next, they paste it into their stablecoin wallet address. And that is it.