The Role Of Stablecoins In Cryptocurrency

In this economy, that is heading toward full digitalization. Cryptocurrency has proved to be a cherry on the cake. You must be wondering how? Well, we all know after the economic crisis that devastated the economy of the whole world, people got worried about their jobs, the money that they had invested and saved in the different banking platforms or stock market platforms. After such a crisis a new online platform came into existence and i.e., ‘Cryptocurrency’.

Cryptocurrency, a platform that no one controls is that mechanism that people were looking for, to immune their money from such crisis like times. People themselves are the controller of their own money and through this platform, there is no fear of losing money rather it is a profitable agency that not only saves your money but also provides good returns if you invest in it. If you are interested in bitcoin trading visit https://bitcoinscycle.com/

On the other hand, if we talk about Stablecoin, it is like any other cryptocurrency but the main difference is that Stablecoin is that coin whose value does not fluctuate like other dominant cryptocurrencies that is Bitcoin and Ethereum. We see every day the value of these currencies fluctuating because of the trading taking place globally. Some days the value is going exceptionally high and other days probably low. But in terms of value, there is no similarity. Such stablecoins are Tether, Paxo’s etc. The value of the Tether is equal to the US dollar which means one Tether is equal to one US dollar. And this is how it remains stable in its value and is called a Stablecoin.


What happens is when you trade in cryptocurrency, the main problem that arises is the ‘exchange deposit’ you want to make with your digital fund which becomes a slow process. The reason why this happens is that the market is going busy because of the trading that is happening in bulk which results in a low exchange rate. This causes your fiat currency to go through a long process to get deposited in your account which makes it quite lengthy.

That is why stablecoins has been made because their value is the same and your fiat currency can be deposited in your account through exchange more quickly. And further, with that Stablecoin, you can trade in any cryptocurrency and its settlement will also be faster, and there would be no tension as to settlement concerning your fund exchange.


There are the following types of stablecoins:

  • Tether
  • Paxo’s
  • Crypto Stablecoins – for example, Ether
  • Fiat Stablecoin – US Dollar
  • Metallic Stablecoin – Gold etc.
  • (USD-MESE)
  • Diem (formerly known as Libra)

These are some of the stablecoins that are there in the digital world. They try to stabilize your investments and provides return as per your fiat currency. People who are just initiating with cryptocurrency would find it the better idea to start investments. Talking about how Bitcoin is different from Stablecoin is that, bitcoin is volatile in nature, its value fluctuates every day. Sometimes it reaches the highest point and sometimes it shows slow or opposite growth which creates tension amongst the crypto investors. To minimize the volatility of other cryptocurrencies Stablecoin was introduced.


Therefore, we can summarize that any person who is scared of the volatility of the digital economy should initiate Stablecoin investment. It would help them to know the crypto world in detail and they would become better investors in future, knowing when to buy and sell their assets in the market.

Crypto trading could turn the table if dealt with entire conscious and careful behavior. I hope this article would help towards a better crypto future.