Use stablecoin instead of USD and enjoy its advantages. Stablecoins have the role of stable and safe currencies in the cryptocurrency market. In times of severe market fluctuations, you can save profits and avoid losses by converting other currencies to them.
Why use stablecoin instead of USD?
The first benefit of stablecoins is that they are maintained by blockchain technology and able to make international transactions in a shorter period of time and at a lower cost than fiat currencies. The fast settlement times make stablecoins an excellent, cross-border medium of exchange.
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The second reason to use stablecoin instead of USD is the low volatility. Due to the nature of stablecoins pegged to a fiat currency, they usually experience trading periods with little volatility, making them a more reliable currency with the benefits of blockchain technology.
Stablecoins become increasingly popular for traders to hedge against other coins as markets experience a decline in price. Stablecoins allow traders to quickly liquidate their assets and easily reenter the market when the price stabilizes. Go to lukka.tech to learn more about volatility factors.
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Conclusion
Despite several disadvantages, stablecoins are considered a vital element in cryptocurrency markets. Due to price stability and, in the worst case, very low volatility, stablecoins are used not only as intermediaries for exchanges but also as a safe choice for traders and investors. The information presented in this article shows why you should use stablecoins instead of USD.
