Since the emergence of cryptocurrency, price fluctuations have been a serious problem, but with the introduction of stablecoins, price fluctuations have seen a significant decrease.
As it has become increasingly instrumental in the crypto economy.
Interestingly, stablecoins now seem to be the best thing to happen in the crypto market as traditional market investors now enjoy investing without thinking about currency devaluation or fluctuations.
With cryptocurrency prices fluctuating at different times within a short period, some users find it exciting, others find it difficult to cope due to the dip in prices after huge investment. Stablecoins on the other hand were introduced to reduce market volatility. Though stablecoins share the same usefulness as other cryptocurrencies, their value remains steady.
With stablecoins, stability of the prices and exclusiveness from market volatility in the crypto market is a result of the currency value being pegged to the price of a stable asset.
Stablecoins are categorized into four major types. They include: Fiat collateralized stablecoins, Commodity collateralized stablecoins, Crypto backed stablecoins, and Non-collateralized stablecoins.
When investing in coins, be sure to understand that a dip can significantly do damage to your investment. An instance was when Bitcoin dropped after a tweet by Elon Musk, the dip in price left many penniless and broke. However, the best news is that stablecoins offer investor and traders a safe space, eliminating the risk of crypto dip.
Stablecoins are not subject to market speculation, they protect investors when other coins in the market are experiencing price fluctuations. Moreso, it is imperative to note that savings on Xend Finance are in digital dollars like BUSD which protect members from devaluation and inflation. In short, BUSD acts as a digital version of the U.S. dollar and is pegged at its value.
With Xend Finance, investors have the opportunity to save in stablecoins like BUSD and earn between 15% to 30% APY while also eliminating the risk of currency devaluation.
Furthermore, individual users can earn up to $5,000 in $XEND tokens when they refer a friend to save on the Xend Finance platform
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