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Hi there, if you're a crypto enthusiast you will have probably figured out that crypto space is filled with much uncertainty which includes unpredictable market movement, price volatility, and unstable fluctuation of cryptocurrencies in the market.
With this much uncertain market movement, some investors and traders can find it quite difficult to keep track of their assets.
Let's say you bought a particular crypto coin for $100 and kept such coin in your wallet or any crypto exchange of your choice for a couple of days if there is are changes and the coins price increase in volume by $5 you will have an increase in your asset portfolio in other if there is a price decrease, there will be a price reduction, these are what traders and investors get to experience every time they access their wallets or exchange, with these also traders will be having difficulty in keeping a track record of their assets.
A “stable coin” is a type of cryptocurrency whose value is tied to an outside asset, such as the U.S. dollar or gold, to stabilize the price.
A primary significance of a stable coin is to stabilize price movement in the crypto space.
In general, with the use of a stable coin a trader or an investor can take advantage of price movement in the market let's take an instance.
If there is high volatility in the market and there is a high dip plunge movement in the crypto market and some crypto coins decrease with at least a 20% downtrend a trader or investor holding a stable coin will be likely unaffected by this price movement of 20% decrease.
With these, a trader can use these opportunities to buy from the dip and make some significant profit from the market.
This post isn't financial or monetary advice so please do make necessary research before venturing into trading as there are risks involved.
This post was originally published by me here
Thanks for stopping by.
Good post. I would really like to see a "gold" stablecoin or a "silver" stablecoin gain broad availability. It would be nice to be able to go into one of those rather than a dollar-backed one since they could potentially move inversely to the fiat stablecoins.
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Thanks for sharing your thoughts hopefully in near future more interesting stable coins will be available.