Stablecoins: Hedging Against Market Volatility

Trade USDT, TUSD, USDC, PAX at ShapeShift.com

When Bitcoin was first created, people saw it as a great way to make peer-to-peer transactions. Bitcoin was was touted as a payment method that would allow for more privacy, transparency, and a way to ease the difficulty and costs of cross-border transactions.

Bitcoin is still used as a payment method, but it’s also seen as a speculative asset and often behaves as such, despite the original intent. As a result, Bitcoin can be highly volatile, often making it less desirable as a method of payment.

Bitcoin has a variety of use cases, which will continue to grow and solidify as the industry advances. However, for those who desire or are in need of an alternative, stable currency, the crypto space developed stablecoins as a solution. Many stablecoins are tied to assets like fiat (ex. the US dollar) or gold, giving users the knowledge that the price is pegged to a familiar asset and the ability to hedge against other, more volatile cryptocurrencies.

Learn about four of our favorite stablecoins in the crypto space, now able to be traded on the ShapeShift Platform: USDT, USDC, TUSD, PAX.