Stablecoins and Bitcoins are top on the lists of crypto investors and traders today. The opportunities provided by both digital currencies make them top on investors’ lists.
Bitcoin has experienced a dip in 2022 but still remains the number one cryptocurrency. The volatility in the prices of crypto assets is however not a question raised for stablecoins.
If you are interested in cryptocurrency but find Bitcoin too volatile, then stablecoins is your best option for a stable crypto coin. With the issue with Bitcoin’s volatility, does it mean that stablecoins are the best crypto to buy between both today?
In this post, we’ll learn more about bitcoins and stablecoins and which is better to buy between both today.
What is Bitcoin?
Bitcoin is a decentralized digital currency, without a central bank or single administrator. It can be sent from user to user on the p2p bitcoin network without the need for intermediaries.
The cryptocurrency was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.
As of today, Bitcoin is the largest and most popular cryptocurrency. Several other coins have been created using its model and are known as altcoins i.e. alternative currency.
Bitcoin which can be referred to as the ‘father of cryptocurrency’ is the largest and most popular crypto asset today. It is ranked number one crypto coin out of over 17,000. As of today, the price of Bitcoin is $39,063.65 USD with a 24-hour trading volume of $15,773,275,670 USD.
BTC has a total market cap of $741,488,702,910 USD. It has a circulating supply of 18,981,550 BTC coins and a max. supply of 21,000,000 BTC coins.
What are Stablecoins?
Stablecoins are the type of altcoins that help to correct the volatility in the price of other cryptocurrencies. They are crypto-equivalent to fiat currencies like US dollars.
Crypto investors who needed something that could reliably hold value over time without volatility and allow them to easily transfer that value invest in these tokens.
Stablecoins are useful for traders and investors in crypto trading. It is easier for them to move money in, out, and between crypto exchanges with Stablecoin, without waiting for banking procedures.
These coins have made it easier for investors to hold a part of their crypto portfolio like cash. This makes it possible to readily purchase any coin at any time without depending on bank services.
Why Bitcoin is Top on Investors List
Listed below are some of the reasons people want to trade i.e. buy or sell Bitcoin.
1. Distrust of the financial system– Bitcoin came to be after the global financial crisis of 2008. It was proffered as a solution to the reckless behavior of large financial institutions & the inability of government to regulate them.
The advantages digital currency have over the traditional forms of money makes it one to consider for the people, Money laundering, for example is less common than cash currency.
As there has been a huge sense of distrust of the financial system, Bitcoin, which is decentralized therefore look like what to try out.
People who saw the value of BTC jumped on it to make it one of the fastest growing new technology in history. Bitcoin has enjoyed huge success despite its risky nature and been an asset to trade for profit.
2. Make quick money– Many people want to trade Bitcoin as it is seen as a way of making quick money. The unstable price of crypto assets have made many to study its market in order to make a fortune.
Many who bought Bitcoin in the early days became millionaire overnight. There are a lot of stories of ordinary people and early investors who made their fortune in BTC with relatively little initial investment. Even the early miners are not left out as they earned BTC with ease.
These stories of the early investors have captured people’s imaginations and make them look to BTC to get rich. Although there has been bubble at some points for various reasons, people still key to the possibilities in crypto.
In Africa where there are issues with the financial institution as well as poverty ravaging the land, people trade Bitcoin to gain financial freedom. The continent, for this reason have the largest population of P2P users in the globe.
3. Hedge against inflation- In Nigeria for example, many people pitch their tents with cryptocurrency to hedge against inflation. The high dollar in the exchange market has contributed to the ‘crippling’ economy, Many, therefore take to Bitcoin trading as solution.
Nigerians are listed top among the users of the leading crypto exchanges such as Binance, Coinbase, Kraken etc. Many people buy & sell Bitcoin and several other alternative coins for this reason.
4. Decentralization of crypto– Many crypto assets are decentralized. This means that no company, government or organization has complete control over the currency. Some people really care about the decentralization which helps to send/receive money without the notice of banks & other financial institutions.
Although some governing banks like the Central Bank of Nigeria has banned activities involving crypto in financial institutions, peer-to-peer platforms which are decentralized has been an option. One of the best P2P platforms in Nigeria today is Prestmit.
5. New financial plans- People now focus on Bitcoin and other crypto assets because of its new uses of financial alternatives. These programs are called DeFi (decentralized finance).
Some of the top DeFi programs offer innovative approaches to peer lending. In other decentralized system, users can lend any amount, without putting these funds under control. This is done automatically via smart contracts in blockchain.
Why People Buy/Sell Stablecoins
Listed below are the reasons why investors tend to buy/sell or hold Stablecoins such as USDT, USDC, DAI, etc.
1. Stablecoins have unique benefits, like using them to transact directly via smartphones with no bank account needed.
2. Holders of stablecoins can put their money into a more stable currency if they live in a country where inflation is rampant. This will help to hedge against the inflation.
3. Many crypto exchanges also doesn’t charge a fee when exchanging stablecoins. It can therefore be used to get around the fees associated with others.
4. Stablecoins can be used to liquidate your store of Bitcoin. You can exchange BTC for USDT, then exchange it for fiat currencies such as dollars, pounds, etc.
Which is Better To Buy Between Bitcoin & Stablecoins In 2022?
Both crypto assets have their benefits which make each a choice for every investors. Bitcoin is known to have real value and can make one a millionaire overnight. The fact that stablecoins are not volatile like every other crypto coins make it a choice for every investors.
As both coins are good for investments in today, they are not without risks. Stablecoins aren’t without controversies. USDT, for example, was claimed to be artificially pumped into the cryptocurrency market to create liquidity.
Bitcoin is known to be highly volatile which can make you lose money in a matter of seconds as prices keep on fluctuating. This shows that both assets have their merits and demerits.
Bitcoins and Stablecoins are top on the list of crypto assets. If you need to buy any of the coins today, just have it in mind that you may make profits or lose with your investment.
It is important to know that investment in crypto is the most risky form of investment. If you must put your money, put what you can afford to lose.
If you need to buy the top crypto coins in the market, Prestmit is available for you. Bitcoins, Dogecoins, USDT and Litecoin are available at good rates.