What Are Stablecoins and Are They Really Safe?

The rate at which things are really growing and becoming, we are actually having a whole lot of new coins coming up in the crypto space and this is something beautiful to see.

The crypto market is actually known for its volatile and as investors, most of the time if you are not actually able to make proper use of it, it can work against you and that is why there is a need to have alternatives.

Most of the time, one of the major thing that investors do to help mitigate risk and control the Volatility so that it will not affect you.

Image Source

First let me start by defining what is stablecoins. Stablecoin are generally cLled digital currencies and most of the time is pegged towards a particular usdt coin. One of the main purposes is to help tackle the price volatility that is experienced when using coins like bitcoin, Ethereum and many more.

And when it comes to stablecoins, we have different types of them and we need to talk about them as the earlier as the better.

We have the fiat collatierised stablecoins which is most common. We have the crypto collateralised stablecoins also which is less common and we have algorithmic stablecoins as part of it also. Most of the time, we really need to pay close attention to why stablecoins are actually very important.

Stablecoins are used for medium of exchange. Not only that, stablecoin also helped to actually retain what I called the safe haven. This is best used most of the time when investors want to convert their assets to stablecoins and they still want to retain their value and market crashes also.

For me, I also prefer to use stablecoins because they are transparenr and they are actually reserve. Not only that but that's just it. We need more stablecoins in the crypto space and I am really so sure that it is just a matter of time as it actually will explode. I am so sure of that.