Which stablecoins to use

Which stablecoins to use
In an industry where traders make money from the market’s volatility, a coin that can hold a stable value is needed. Stablecoins are like the yin to Bitcoin’s jang. They are great tools for traders and hodlers who want to protect profits in the short term during a correction. How do you know which stablecoins to use? AltCoinTrader has two reputable and secure stablecoins available to traders. Let’s check out xZAR and Tether (USDT).

What is a stablecoin?

A stablecoin is traditionally pegged to a fiat currency, whether it be US Dollar or South African Rand. They act as a bridge between cryptocurrencies and blockchain technology and the stable nature of fiat currencies. You get the best of both worlds since stablecoins are backed by a fiat currency whilst implementing advanced blockchain features.

Stablecoins combat the volatility of the cryptocurrency market. There are various stablecoins available, some good and some bad. Of course, AltCoinTrader only works with the best projects.

Benefits of a stablecoin

The benefits of a stablecoin is that it serves as a medium of exchange and store of value. It is said that stablecoins are the gateway to the widespread adoption of blockchain technology.

If you want to make fast international payments using cryptocurrencies, a stablecoin is your best friend. By sending funds internationally with a stablecoin, you are not subjected to the high volatility associated with the cryptocurrency market. You can be assured that the amount you paid with a stablecoin will be the same once it reflects in the beneficiary’s account.

Using a stablecoin is a great way to reduce costs and make fast peer-to-peer payments, especially when it comes to e-commerce. Various banks and financial institutions have made headlines with their plans to implement stablecoins in an effort to fast track global payments. These are called Central Bank Digital Currencies or CBDCs. The People’s Bank of China recently launched their CBDC, the “digital yuan”. It is expected that more countries will follow suit.

If you are an avid trader, it is easy to sell your cryptocurrency for a stablecoin in order to protect the profit you made. When another profitable trade presents itself, you can easily sell your stablecoin for the desired cryptocurrency to start trading again. Stablecoins can give you a break from trading.

Which stablecoins to use on AltCoinTrader

Making the most of stablecoins is easy with AltCoinTrader. Sell Bitcoin for one of the two listed stablecoins to protect your profits from market volatility.

xZAR

The xZAR is an ERC-20 token that is pegged 1:1 with the South African Rand. It is a very popular stablecoin amongst South Africa investors and has been around since May 2018. xZAR gives one the ability to quickly convert the coins into South African Rand and vice versa on AltCoinTrader.

Tether

Tether (USDT) is pegged 1:1 to the US Dollar and is regarded as one of the most successful stablecoins in the cryptocurrency industry. The need for USDT rose from legislation prohibiting direct US Dollar transactions in various countries. Converting Bitcoin into USDT is one click away on AltCoinTrader.

For more information please visit xzar.co.za