Cryptocurrencies have had a very bad year in 2022, as the crypto winter ravaged the market. However, with the start of 2023, many are hoping to see a significant market improvement.
This is why a lot of people are now buying stablecoins, preparing to wait for as long as they need to. But, if you are new to the crypto industry, you might be wondering — why is that? How can stablecoins be useful?
Well, as the name suggests, stablecoins are cryptocurrencies that are stable. They are digital assets backed by traditional money, and as such, their value doesn’t constantly go up and down, like it does for Bitcoin or other coins and tokens.
As such, stablecoins are a perfect way to keep your money in the crypto industry, but also to keep it safe from being devalued.
The way it works is simple — you would buy stablecoins, which can be exchanged for pretty much any cryptocurrency at the moment’s notice. That way, you can react quickly if the prices start growing, instead of having to deal with slow transfers from the bank.
After that, all you need to do is wait, and when the price starts going up — you exchange your stablecoins for whatever cryptocurrency you might be interested in. Of course, if you are new to the crypto industry, you might want to do some research on how to buy Tether, which is the biggest stablecoin out there.
Stablecoins are useful as they are supported by all exchanges, so it is easy to move money around, they pose no threat of value loss, since they are backed by physical money, and they are cheaper and faster. Plus, Tether itself runs on many different blockchains, which grants it yet another advantage over most other cryptocurrencies, even among stablecoins.
So, if you wish to keep your money in the crypto industry but you are not ready to invest just yet — stablecoins are the way to go.