Bitcoin which is a cryptocurrency as well as a decentralized digital currency has outperformed many traditional investment options like gold, real estate, and equities in a matter of years. Can cryptocurrency prove to be a good way to increase wealth? Bitcoin is a digital currency growing at such a rapid pace which is quite mind-boggling indeed. Blockchain is a critical component of democracy. At the time when Satoshi Nakamoto released Bitcoin, 1 BTC value was $0.08. If we talk about the year 2021, its value has increased to more than $68,000.
The development of cryptocurrencies has been marked by extreme volatility. Both abrupt drops and difficult climbs have occurred. After falling 30% in 2021, Bitcoin stabilised and reached a high of over $30,000; since then, the price has dropped almost 50%, culminating at $64,000 in mid-April. Also, by trading on a reputable site, you can begin selling bitcoins from anywhere in the world and raise profits in fiat currencies. Due to the high level of volatility, it is challenging for newbies to profit from bitcoin. However, the best approach to begin trading is by consulting a beginner’s guide to bitcoin. When it comes to investing in cryptocurrencies, stablecoins, which are digital currencies with a fixed value, have tended to be the exception rather than the rule. Stablecoins, as opposed to unstable cryptocurrencies, have their value tied to a significant reserve currency, like the US dollar and gold. Although they don’t have as much instability as other cryptocurrencies, stablecoins are a special kind of cryptocurrency.
Can crypto investors make money from stablecoins?
Cryptocurrencies are highly volatile which presents many opportunities for traders to make more money during the bull run, but at the same time, stability is known to be a sure killer. Most people and businesses are not going to accept a payment method that can lose value in the blink of an eye.
Stablecoins were developed as a link among conventional finance and the cryptocurrency markets, supporting crucial financial operations like borrowing, lending, and using derivatives, among others, and offering a stable base worth for the decentralised finance (DeFi) ecosystem. The US Dollar Index and Dai (DAI) are two examples of algorithmic money (USDX). Keep in mind that supervised stablecoins have higher stability than their algorithmic cousins. Stablecoins that are asset-backed or algorithmic can both add value to your crypto investment portfolio.
Liquidity Mining
Liquidity mining’s primary goal is to supply DeFi protocols with liquidity. Holders contribute their digital coins to trading pairings like Polkadot (DOT)/USDC for crypto trading in a liquidity pool, sometimes referred to as a smart contract. Users may use well-known tokens as a source of liquidity. Users will receive Liquidity Provider tokens as well as any native tokens or governance tokens issued on each block as long as they keep their tokens in the pool.
Crypto Lending
Just like you deposit your money in the bank and after that you get interested in that money, crypto lending also works in the same way as regular banking. When it comes to developing passive attention, stablecoins perform remarkably well. Your stablecoins can be lent to decentralised finance (DeFi) protocols, where you can use them for lending and get paid extra for supplying liquidity.
Way to purchase and keep them safe while investing in the crypto market Stablecoin
In case you have initiated your investment with stablecoin, some facts should be kept in mind. First of all search for a reputed exchange platform that would offer the stable pin of your choice and create an account with it. Some of the popular exchange platforms are Gemini, Finance, etc. Once the account has been created, then choose a stablecoin that you want to buy. After purchasing it, make a plan to keep it safe as well. This is possible by generating a crypto wall or by adopting a custodian like coinbase custodians. Before choosing any of the options, your search on the subjective matter should be completed.