The cryptocurrency market can be highly volatile and unstable. It’s the market where you can see Initial Coin Offerings (ICOs) raising millions of dollars in seconds, Ponzi schemes at each step, and people getting rich in no time.
Trading is the most common way of getting involved with cryptocurrencies. Crypto trading is, simply put, the exchange of cryptocurrencies.
You can buy or sell other cryptocurrencies like bitcoin and altcoins, or for fiat currencies such as USD and Euro.
However, because of their high volatility, trading with cryptocurrencies is often risky and unreliable.
Is there even a way to trade crypto safely and protect your funds? Yes, in fact, there is.
Let us introduce you to trading with stablecoins, which is one of the lowest risk ways to earn money with cryptocurrency.
Trading with stablecoins
As their name says, stablecoins’ price doesn’t fluctuate, and they are ”stable” in value. Compared to them, bitcoin and other altcoins carry high volatility risk for traders. But when you trade with stablecoins, you can save yourself from large price swings. They downplay the risk, while the reward can also be attractive.
For example, let’s say that you’re hodling bitcoins until they reach almost $20,000, like in 2017. And finally, that day has come. Still, here is the thing: bitcoin’s price is volatile and it can suddenly drop without any warning.
But, once it reaches a price that is high enough for you, you could exchange your bitcoins for a USD-backed stablecoin, and your assets would be safe from any surprising drops in price.
With stablecoins, you lock your assets and protect them against losses.
So, it’s no wonder that stablecoins are gaining on popularity. Recently, Facebook also entered the stablecoins game with its coin Libra. And many big crypto exchanges such as Coinbase offer trading pairs with stablecoins.
Check out Novem Gold (NVM) Airdrop, a Gold backed stablecoin
Cryptocurrencies are the most volatile digital assets out there. The prices are fluctuating rapidly and unpredictably. This is what prevents the wide adoption of cryptocurrencies, and it prevents many investors from trying trading.
But, crypto trading doesn’t have to be a volatility nightmare. There are ways to safely trade, and stablecoins are one of them. Thanks to stablecoins, you don’t have to worry about the instability and volatility of cryptocurrency prices.
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