Techiexpert.com
No Result
View All Result
  • Tech
  • Startup
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
No Result
View All Result
  • Tech
  • Startup
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
No Result
View All Result
Techiexpert.com
No Result
View All Result

Why are stable coins regarded as profitable investments?

Sony T by Sony T
January 20, 2022
in Tech news
0
stablecoin
10
SHARES
131
VIEWS
Share on FacebookShare on Twitter

The crypto community would have been more interesting, but for the price volatility. One of the main reasons why most individuals are skeptical about investing in cryptocurrencies is the fluctuation in price of assets and the highs and lows. This price volatility has been branded many names like “Ponzi scheme” because some investors have bought some projects and lost. Hence, it’s advisable that you understand what the crypto community entails before investing. It might, however, interest you to note that even amidst this price volatility, some investors are still making a fortune out of the crypto community. There are several projects in the crypto community. One of them is stablecoins investment, which is one of the safest means of earning in the crypto community, although nothing is promised.

Stablecoins are those assets with defined values. They are such that each coin has its value attributed to an external asset, such as gold, US dollars, euros, etc. The stability of stablecoins is one of the reasons why they are preferred to use in buying other crypto assets instead of using fiat. So, most times, you do not trade against a stable coin; instead, you use them in buying the less stable ones (altcoins).

What are utility assets?

Utility assets are those blockchain-based tokens you could have/store for future uses. Most stable coins are regarded as utility assets because their price remains the same over a long period. It’s safe to assume that stablecoins would stay a valuable utility asset compared to altcoins over a long time, considering both assets are subjected to time. The difference here is that altcoin could outperform stablecoin if and only if the project is promised to keep increasing without experiencing any dip.

What’s the difference between stable coins and altcoins?

As mentioned above, the cryptocurrency community is a very profitable one, depending on how well you can navigate it. There are some niches where you could become s millionaire in dollars in less than hours if you are willing to take the risk. On the other hand, if you want to play by the books, you should ensure you understand what you are getting into before making any investment, either altcoin or stablecoin investments. Here are, however, some of the differences between altcoin and stablecoin

Price volatility:

One significant difference between these two types of coin/investments is price volatility. In stablecoin investments or stablecoin cryptos like USDT, the price is stable compared to altcoins like Ethereum. The price of USDT (US dollars) hasn’t experienced a 2% increase since the beginning of the year, but Ethereum has experienced over a 50% increase. However, it is essential to note that these price differences could also be negative; in this case, the altcoin would have lost the accumulated profits while stablecoin remains somewhat unchanged. Hence, the reason for the significantly high price fluctuation in altcoins compared to stablecoins. Most altcoins have the capacity to increase exponentially and decrease the same way depending on the market forces.

Price prediction:

While it’s easier and more accurate to predict the price of a stablecoin over a given period, it’s impossible to achieve this with altcoins. Before now, 2021 was supposed to be the “altcoin season,” however, it only lasted the first two months of the year before the price fluctuation started and NFTs became a thing. Nonetheless, stablecoin, on the other hand, has maintained the predicted price and stayed stable, as the name implies. 

Why are stablecoins regarded as profitable investments?

No investor would want to count losses, or in this case, dwell on investments that would bring on more losses. Most times, it becomes preferable to earn a minimal amount of profit on investment than to take a huge risk and throw all the earnings in the well in minutes. So, most investors prefer stablecoin investments because it’s less affected by market forces, and if affected, it’s mainly on a very minimal scale compared to altcoins.

Having a stablecoin over five years becomes preferable to an altcoin investment of one month, which could end up in the drain a few days later. Since stablecoin brings more satisfaction to traders and is stress-free, it becomes the most preferred. The crypto community is volatile, it still doesn’t mean all crypto assets are volatile, and stablecoin investments are examples. Suppose you want to keep away from price volatility in the crypto community. In that case, you should probably consider investing in stablecoins, although it would definitely take a longer period for the profits to become tangible compared to altcoins.

Popular this week

  • Renesas Expands IoT Footprint with Sequans Acquisition

    Renesas Expands IoT Footprint with Sequans Acquisition

    2128 shares
    Share 851 Tweet 532
  • Y2Mate.com 2023: How to Download Videos and Audios

    241 shares
    Share 96 Tweet 60
  • Top 10 Omegle Alternatives you might like

    333 shares
    Share 133 Tweet 83
  • What is windows modules installer ? How to Enable/Disable

    124 shares
    Share 50 Tweet 31
  • Top 10 YouTube to MP3 Converter Platforms for Free

    97 shares
    Share 39 Tweet 24
  • Does God Play Dice? – A Quantum Perspective

    43 shares
    Share 17 Tweet 11

Latest Stories on TechiExpert

Tamil Nadu CM MK Stalin Unveils Ambitious Startup and Innovation Policy 2023

Tamil Nadu CM MK Stalin Unveils Ambitious Startup and Innovation Policy 2023
Share4Tweet3Share1Pin1

Bengaluru Fintech Startup Converj Targets B2B Payments with Virtual Credit Cards

Bengaluru Fintech Startup Converj Targets B2B Payments with Virtual Credit Cards

Pay for goods by credit card through a smartphone in a coffee shop.

Share4Tweet3Share1Pin1

EaseMyAI raises Rs. 3 Crore in Seed Round led by IPV

EaseMyAI raises Rs. 3 Crore in Seed Round led by IPV
Share5Tweet3Share1Pin1

Veera India’s Mobile Only Internet Browser by Marquee Investors and Entrepreneurs

Veera India’s Mobile Only Internet Browser by Marquee Investors and Entrepreneurs
Share5Tweet3Share1Pin1
  • Privacy Policy
  • About Us
  • Contact us
  • Cookie Policy
  • Write For Us

© 2016-2022 All Rights Reserved

No Result
View All Result
  • Tech
  • Startup
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain

© 2016-2022 All Rights Reserved

Cookie Law Notice
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
SAVE & ACCEPT
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.