What are stable coins #SHORTS
Crypto is volatile so let’s look at how you can reduce your risk by using USDT or USDC.
Let’s use USDT as an example in this scenario.
A job you just completed has paid you $100 in Bitcoin.
Next week you need that $100 for an expense and you want to ensure the volatility of Bitcoin doesn’t affect that amount. So how do you protect against this?
You use the Bitcoin that you received from your job and convert it using a reputable crypto exchange into USDT.
The USDT you have will now show a stable balance of $100 and is pegged to the USD. This means it won’t be exposed to the original volatility when you received it as Bitcoin.
At a later date, if you decide you didn’t need to use the USDT balance, you can convert it back into Bitcoin or any other cryptocurrency.
It’s as easy and simple as that.
Comment below if and why you use Stablecoins! 👇🏼