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29 April 2022
Russians began buying stablecoins masse following the launch of a specific Ukrainian operation. Let's see why this cryptocurrency is so well-liked, how to purchase it, and what it could do for us in the face of sanctions.
What is Stablecoin?
In the offline world the use of fiat currencies to estimate the price of goods and services. The world of cryptocurrency has its own metrics, such as the number of transactions, block size, and hashrate. We've created a digital currency which can be connected to fiat currencies as well as precious metals to provide additional capabilities to the Blockchain.
Stablecoins (digital coins) are linked to the US dollars (USD) in a ratio 1:1. Tether launched USDT in 2015 as the first such cryptocurrency. There are other stablecoins that are available, like Circle's USDC or BUSD created by the Binance cryptocurrency exchange. The company that created the coin is identified with the last letter.
Stablecoins enable savings in fiat to be converted easily into digital currency. This lets you invest or trade immediately. Furthermore, with https://www.benzinga.com/how-to-trade-cryptocurrency of stablecoins, you can reduce the amount of your crypto savings - in periods of high volatility in the market, cryptocurrency can be converted into stablecoins, and then wait for better conditions. The best thing about stablecoins? They can be used to pay off your savings and secure your funds when the exchange rate for the currency of your country is low.
Why has the increase in demand for stabilizecoins?
In Russia the cryptocurrency market has experienced a surge in demand in the past two weeks, as a means to protect savings. The number of crypto currency users as well as ruble deposits has increased on exchanges for cryptocurrency. Alongside bitcoin the second most sought-after cryptocurrency is stablecoins, in particular USDT.
According to statistics of visitors to different trading platforms, since the end of February the influx of users has increased 2-3 times. Interest in USDT surpasses the demand for bitcoins and other well-known cryptocurrency, as the stablecoin is a substitute for cash American dollars that it is not possible to purchase at present.
EXMO cryptocurrency platform saw an increase in deposits of rubles. The reason is that the Binance exchange is no longer working using Visa and Mastercard bank cards issued in Russia.
For Russians who live abroad, cryptocurrency, and especially stablecoins, are an easy method of sending money between countries even if Russia is currently under Western sanctions. Stablecoins make it easy to transfer your savings quickly between rubles and foreign currencies.
There is an increase in the volume of cryptocurrency transactions made on p2p platforms. These are the platforms where the transactions that involve crypto currencies take place between people. The platform itself acts as an intermediary and guarantees of the transaction. After buying cryptocurrency the buyer transfers it to his crypto wallet, then to a banking card.
Instructions on how to buy Stablecoins right away
Purchase stablecoins through a central exchange to be secure and guard yourself from scammers. However, to date, a few websites have instituted various restrictive measures, and it is difficult or impossible for holders of a Russian passport to use them. There are also decentralized crypto-exchanges (DEX), where user funds are not held. Each time you use the DEX platform the commission for one specific blockchain is charged.
This is a partnership model of interaction that operates on the same terms. Many p2p websites connect people who wish to exchange or purchase stablecoins. You can find amazing deals on buying cryptocurrencies in rubles. The platform also acts as a guarantee of transactions.
Two stages are required to complete the transaction:
The buyer gives the seller the amount that he wishes to purchase stablecoins.
The seller will send the buyer a crypto currency to his wallet in crypto.
To ensure that you don't lose cash, it is essential to make sure you use only reputable and proven P2P platforms. Important: Before you do any transaction, ensure that you verify the number of orders that have been received as well as the proportion of the orders that were fulfilled. If there are many orders, this indicates that the seller is reliable. A low success rate on a website with an established and well-known audience does not mean that you're "thrown", but it increases the chance of delays and slow seller response.
There are two types:
Online - The user fills out an online form that allows him to get payment details in rubles, transfer funds, and receives cryptocurrency in his wallet.
Online exchangers are able to be automatically serviced. Therefore, when you transfer money in rubles, make sure you verify the amount. Otherwise the robot may not recognize the payment. If you wish to use the services offered by the exchanger, you will need to pay a fee of 3-10 percent of the amount you are paying.
Offline exchangers function in exactly the same way as bank branches. You are able to make payments only by entering the exchanger.
How to get rid
In the event of a declining ruble and the inability to buy euros or dollars Bitcoins are among the most effective options to preserve capital. Similar scenarios have been observed in Turkey, Venezuela, and Turkey.
As an alternative to other currencies, stablecoins can be the most suitable option because they are essentially an electronic version of the dollar, and they are not subject to volatility, unlike other cryptocurrencies.
In general, experts advise using stablecoins to perform operations that are currently unavailable in Russia because of the restrictions imposed. These tasks can be performed by using stablecoins. Then, you can withdraw these coins into cash or in decentralized cryptocurrency.