how to buy stablecoin: 5 Steps to Safely Buying Stablecoins

how to buy stablecoin

NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Similar to concerns made about Tether, USDC was flagged last year for not backing each USDC with an asset or dollar equivalent.

  • When buying USD Coin, factor in your financial goals and see if the risks make it the right buy for you.
  • NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances.
  • Instead of transacting in U.S. dollars each time and paying the accompanying fees when cashing out, a crypto user can buy an amount of a stablecoin to keep within the exchange’s walls.
  • Many or all of the products featured here are from our partners who compensate us.

One algorithmic stablecoin is AMPL, which its creators say is better equipped to handle shocks in demand. All cryptocurrencies are are based on similar blockchain technology, which enables secure ownership of digital assets. Cryptocurrencies circulate on decentralized networks that use cryptography to guard against counterfeiting and fraud. Assets such as backed stablecoins can give risk-averse buyers and sellers certainty that the value of their tokens won’t rise or crash unpredictably in the near future. For both beginners and seasoned traders, the stable and certain nature of backed stablecoins makes them a good asset to hold on to or invest in, especially during the bear market seasons.

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What Can You Buy With USDC?

Increased efficiency also brings more accurate asset pricing, resulting in fairer asset prices,tighter bids and ask spreads. Crypto investors or traders often turn to backed stablecoins under a volatile market climate. Turning to stablecoins allows them to stay in the cryptocurrency market and enables them to move faster between trades without waiting days to transfer from fiat money.

how to buy stablecoin

The interest in stablecoins is that they are built to withstand volatility in a way that other cryptocurrencies aren’t, but still offer mobility and accessibility. A more stable cryptocurrency is still decentralized, meaning it isn’t beholden to the rules and regulations of a centralized system. Centralized stablecoins provide a digital option with the backing of a traditional currency. Stably Ramp is an onramp platform that offers innovative solutions to traditional finance problems. With the rapid growth of decentralized finance (DeFi), stablecoins have become increasingly popular to trade and invest in the cryptocurrency market. This article will guide you through buying stablecoins on Stably’s Stably Ramp and trading them on Uniswap, the world’s largest decentralized exchange (DEX), using MetaMask as your wallet.

Recently purchased the Nano Ledger X, and the simple, easy-to-use interface helped me to easily transfer my Bitcoins from Coinbase. Products like the Nano Ledger X will help cryptos such as Bitcoin become adopted the broader society. You can also buy Dai Stablecoin on other plateforms and then secure it with your hardware wallet. Just select your funding source in From – banks, cards, crypto wallets – and pick the stock you want to buy in To. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.

When you own cryptocurrencies, what you really own is a private key, a critical piece of information used to authorize outgoing transactions on the blockchain network. Holding the private keys gives you access to your crypto, like holding a pin code to your debit card; in short it gives you access to your funds. Our hardware wallets are compatible with more than 1800 different assets, including Dai Stablecoin.

This type of cryptocurrency is pegged to another asset and typically mirrors that asset’s value. For example, several stablecoins are pegged to the U.S. dollar and are each worth $1. And some stablecoins, such as Tether and USD Coin, are among those with the highest market capitalizations on the cryptocurrency market.

USD Coin is a stablecoin built on the Ethereum (ETH) blockchain. Like other collateralized stablecoins, USD Coin’s value is pegged to the U.S. dollar. That means that one USDC should ideally always be worth one dollar. Being a crypto investor requires taking security seriously and owning your private keys gives you much more power and control. The main principle behind hardware wallets is to provide full isolation between the private keys and your easy-to-hack computer or smartphone.

Best Crypto Wallets of August 2023

The only people you can trust for storing your crypto assets is yourself. Today there are approximately 200 globally distributed stablecoins. Some of the most popular are issued directly by exchanges themselves like USD Coin (USDC), Pax Dollar (USDP), Binance Dollar (BUSD) and Gemini Dollar (GUSD). Learn all about stablecoins, including their origins, how they work, how to use them and popular stablecoins you can start using today. Every ETHS token may be minted or redeemed 1-to-1 with ETH according to Stably’s terms and policies, minus fees, through a Stably Ramp account. At Uphold buying stablecoins such as UPUSD is fast and easy, opening an account takes minutes, without any unnecessary paperwork or waiting times.

The breaking of its peg in May of 2022 is considered a watershed moment in the history of stablecoins. Uniswap is a decentralized exchange allowing you to trade your stablecoins for other assets. If you’re curious about cryptocurrency, think about using some “fun money” — those dollars left over after you’ve built your savings and paid for essential expenses. If you’re looking to add some riskier assets to your portfolio, individual stocks can also fill that role.

Buy and sell cryptocurrencies on an expert picked exchange

It can also swing the other way where the consumer gets the short end of the bargain. We all remember the infamous story of the person who bought 2 large pizzas in 2010 for 10,000 Bitcoin (valued at $690M at the all-time-high price in November 2021). Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. We believe everyone should be able to make financial decisions with confidence.

how to buy stablecoin

When buying USD Coin, factor in your financial goals and see if the risks make it the right buy for you. And, of course, you can also use your USDC in the traditional sense to buy other cryptocurrencies. That recent move now means either one dollar or asset-equivalent backs every USDC. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

The recommended way to do this is through a transfer from your bank account. Add your bank account as a funding source using the account number and routing number. Here are our picks for best Bitcoin and cryptocurrency exchanges.

A quick and efficient medium that lets crypto traders move fast in the crypto market

USDC investors generally use their holdings to earn passive income. You can lend USDC directly through its issuer, Circle, or with a hardware wallet like Ledger. Ledger is your gateway to buy, store and manage your Dai Stablecoin securely. Our solution lets you securely manage your Dai Stablecoin and more than 1800 different assets in one single app. There’s even a clever equivalent field that allows you to specify the value of a stock-to-stock trade in your local currency – e.g., when you’re buying $50 worth of BTC using USDT. Our partners cannot pay us to guarantee favorable reviews of their products or services.

  • It’s the native cryptocurrency of Paxos, a financial institution regulated by the NYDFS.
  • Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
  • These stablecoins are centralized, which parts of the crypto community may see as a drawback, but it also protects them from crypto volatility.
  • Learn all about stablecoins, including their origins, how they work, how to use them and popular stablecoins you can start using today.
  • They offer users a greater degree of price stability than other cryptocurrencies.

In a nutshell, stablecoins tackle price fluctuations by binding the value of cryptocurrencies to more stable assets like fiat currencies. In this article, we will take a deep-dive into what stablecoins are, their importance, benefits in the crypto space and the popular stablecoins available on the market. Because their value is usually tied to real assets, stablecoins are commonly used for passive-income generating activities like crypto lending and staking. By locking up stablecoins within a specific network or protocol, holders can earn interest rates significantly higher than traditional bank interest, ranging from 5-15% annually.

Binance Dollar (BUSD) is a stablecoin backed by the U.S. dollar issued on the Ethereum (ETH) blockchain. It was created through a partnership between Binance, the world’s largest cryptocurrency exchange, and Paxos, a leading crypto infrastructure provider. It’s one of the first government-regulated stablecoins to be approved by the New York State Department of Financial Services (NYDFS). Stably Ramp is a fiat-to-crypto on-ramp that allows you to buy stablecoins directly with your bank account or credit card.

There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. Our experts have done the research to pick out the select few top crypto exchanges today. Depending on the exchange, there may be either a “Buy” button or page.

This makes stablecoins a favored safe haven among crypto users to shield their holdings from market volatility. Fiat-backed stablecoins are described as an IOU — you use your dollars (or other fiat currency) to buy stablecoins that you can redeem later for your original currency. Unlike other cryptos, with value that can fluctuate wildly, fiat-backed stablecoins aim to have very small price fluctuations. But that’s not to say stablecoins are a totally safe bet — they are still relatively new with a limited track record and unknown risks, and should be invested in with caution.

In addition, stablecoins can be transferred quickly internationally, including to places where the US dollar may be hard to obtain or where the local currency is unstable. At Binance, we offer a suite of products to suit your financial needs. For crypto investors, you can choose to buy stablecoins such as BUSD and earn compound interest via Binance Earn. In addition, you can make recurring purchases for USDT, BUSD via Recurring Buy.

These assets are less stable than fiat-backed stablecoins, and it is a good idea to keep tabs on how the underlying crypto asset behind your stablecoin is performing. One crypto-backed stablecoin is dai, which is pegged to the U.S. dollar and runs on the Ethereum blockchain. Trusted by millions worldwide, Binance is home to the world’s largest global cryptocurrency exchange by trading volume and user base. Sign up for a Binance account to start trading stablecoins and other tokens today.

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