Stablecoins have been gaining ground in the digital currency market. This type of cryptocurrency is generally pegged to fiat currencies —although there are other possibilities—which ensures greater value stability. The question arises: if stablecoins are worth the same as a traditional currency, what are their advantages?
One of the advantages of stablecoins is that it is easier to buy them than to buy, for example, dollar or pounds. In this sense, there is no minimum or maximum for the purchase of this type of cryptocurrency. Additionally, this operation does not require the person to have a bank account or a vault to store the resources.
Stablecoins also allow investors to access decentralized finance (DeFi) products. That is, you can invest these resources in different ways and earn income.
Sending resources anywhere is one of the advantages of stablecoins
However, if the idea is not to invest but to send money to someone else, stablecoins also bring advantages. Its transfer is almost immediate, safe, and cheaper than that of a fiat currency. In addition, these remittances can be made to individuals or companies anywhere on the planet and without the restrictions of bank business hours.
Having stablecoins in your digital wallet still gives the investor an advantageous position when making crypto investments. Imagine a person who has BRZ — Swiss Transfero’s real-backed stablecoin — and sees a good investment opportunity, for example, in bitcoin. You need to access the exchange and buy the leading cryptocurrency quickly. However, if this investor had his reserves in the dollar, the transaction would take much longer.
Likewise, stablecoins represent a safe way out when a cryptoasset is devaluing. It´s essential to recall the bitcoin bubble of 2017. If an investor realizes that the price begins to fall rapidly and wanted to sell this asset, a stablecoin would be a good alternative to the exchange. Because it is a quick operation, and the price of stablecoin only varies as you change the currency price to which it is pegged to.
