Stable Coin Is The Answer To The Volatile Crypto Market!

By Vignesh M on ALTCOIN MAGAZINE

Crypto Volatility

We may be wondering why the Crypto (Precisely Bitcoin) values are having too much volatility which makes us think many times to choose the right time to buy. The reason for the volatility is due to frequent demand and supply of the crypto coin in the market.

Sometimes people double their money or lose 3/4th of it’s in this chaotic situation in the market which happens in a very short span of time. When there is a demand for the particular crypto coin there will be fluctuation in its value, where there is no demand or bad news results in a blood bath. To justify this situation the crypto giants have introduced an innovative idea to stabilize the demand and supply and the value of the crypto in the market, it is the Stable coin.

Stable Coin

A stable coin is nothing but a crypto token that is created and backed up by an asset in the form of a USD (It’s a reserved asset held globally) or Gold or Silver or any other commodity which are commonly used as an asset globally, this will stabilize the volatility of the crypto that we trade in the market.

To explain more clearly, when someone has a BTC worth of $10000 and have $20000 worth of the stable coin, the crypto value will be stabilized for a certain limit of price fluctuation (if the BTC price drops below $8000, it still has the value of $10000 as it is backed by his stable coin which is having a backup of $20,000). By this means the value of the crypto the investor has invested can be controlled and stabilized.

But, not all the crypto can be considered as a stable coin, it has to be built passing certain regulation criteria structured as per International Monetary Funds (IMF)

Stable Coins As Assets

There are some stable coins that are available such as USDT (Tether), DGX (Gold) that are used as an asset to back the volatility, these are built based on Ethereum platform such as ERC20.

As per the current situation of the Crypto market, all the Crypto Exchange platform should provide Stable coin as a part of service that will really restore peace in trader’s head without pushing them into the panic zone.

Best Company To Approach

There are many Crypto developers are available to create a stable coin, but only a few are there who completely understand the concept and create without any flaw considering the profit and security of the customers. One among the experts are Alwin Technologies, it has the most professional Blockchain developers who have a well-mannered track record with their existing clients.

The stability of crypto coins is a next giant step towards the growth of the Crypto industries when it is completely stabilized,then it will give trust to the investors for a long term investment holding.

-Vignesh

Business Consultant at Alwin (+91 7904043766)