Using Stable Coins in Crypto Trading

[Mika]

Stable coins are the coins that are pegged with USD in 1:1 ratio. Stable coins are created by maintaining a reserve with SD, gold, etc. with the traditional finance systems like banks. USDT, BUSD and USDC are some popular stable coins. Unlike, the general understanding of crypto, these stable coins are not decentralized money, these are crwated and managed by private companies. USDT is created by a company called Tether, BSD and USDC belong to exchanges like Binance and Coinbase. Interestingly, Dai is considered a fully decentralized stable coin. The preference for stable coins like USDT in crypto trading is driven by the aim to minimize risks. One of the easiest ways to use stable coins is for strategic crypto trading.

 

[Suba]

That's right, crypto exchanges not only offer trading pairs in fiat money to crypto or crypto to crypto but they also provide trading pairs with stablecoins. Many traders are interested in using stablecoins as trading pairs because the main reason is that stablecoins only have a limited level of fluctuation which is expected to be to the trader's advantage. Apart from that, traders also apply several strategies such as storing value, arbitrage and hedging.

 

[ImamShaheb]

PayPal's PYUSD should be considered as well, this will help on crisis...