What is a Stable Coin

Full Episode Transcription

SUMMARY KEYWORDS

coins, stable, crypto, tokens, exchanges, cryptocurrency, podcast, Singapore, DEFI, fiat, currencies, XSGD, USDT, Tether, USDC, BUSD, Binance stable coin, price, fiat currency, buy, interest

00:00

Welcome to the New to Crypto Podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to Crypto Podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto don’t know where to start? Are you more experienced too but have questions? Then you’re in the right place. This podcast is designed for you coming at you from the Trading Center and the lifestyle design studio. Here’s your host Crypto Travels Michael.

00:52

Coming at you from Finland to South Korea to Netherlands to India, to the Philippines to Perth, Australia to Guadalajara, Mexico and everywhere in between the New To Crypto Podcast is being heard. I look forward to meeting each and every one of you. Welcome to today’s podcast where we dive into what is a stable coin. This is a very important thing to know in crypto and today you will find out why without further ado, let’s jump into it. 

01:24

What on earth is a stable coin? A what a stable Who? a stable coin. I don’t understand. Well, today you will check it ….stable coins bridge the gap between fiat currency and crypto currencies. These are price stable digital assets. They are usually pegged against fiat currency. Stable coins are digital money. They are a medium of exchange, a store of value if you will. These are tokens designed to stay at a fixed value. 

02:01

I’m going to share a list of some of the most popular stable coins pegged against the US dollar value number one, USDT also known as Tether number two USDC the USD coin number three be USD the Binance USD coin number four t USD, also known as the trust token, and the final one is Dai. They’re stable coins pegged against other currencies as well. 

02:40

One of my favorites is the Singapore dollar stable coin. Other stables are available for euros pounds Australian dollars, stirs Japanese yen, Canadian dollars and more. So what stable coins do is they help against price fluctuations in the crypto market. And let me unpack some of the benefits of using stable coins for you. So one of the things is they allow you to move more seamlessly between the fiat currency and digital assets. And they provide a hedge or a safe against volatility in the market, so the change in price is very minimal with stable coins. Stable coins are global and they can be sent over the internet, they’re easy to receive or send once you have a wallet that holds them of course, and the demand for stable coins is high. 

03:33

You can also earn interest for lending your stable coins. Make sure you’re aware of the risks before lightning and do all your due diligence. Stable coins are exchangeable for other tokens. Lots of DAPPS rely on stable coins. Stable coins are secured by cryptography. So how can you get stable coins, you can swap them for Fiat or for other cryptocurrencies and get stable coins. You can buy them of course with regular Fiat, you can earn them and you can borrow.

04:09

There are places where you can earn interest on stable coins just for having them. Some of those places include Aave,  Compound, and Oasis. Be sure to do your own research about which stable coins are the best. 

04:22

Let me give you an example of a stable coin use. Let’s say I have 100 US dollars, okay, and I convert it to a US dollar stable coin for 100 coins or tokens. Each one of my new tokens is backed at one to one based on the US dollar. So let’s say I have these new stable coins in an exchange in my account. I now have these stable coins in a wallet within my account at one of the exchanges. I can swap them with any other cryptocurrency or another option is I could just keep and hold on to them. Stable coins. I can also use stable coins to pay a friend that I need to send some funds to. I can use stable coins to buy goods or services for example, by simply sending the stable coins to the wallet of the receiver. Or other uses is let’s say I’m waiting for a specific cryptocurrency to get to a certain price, maybe drop in price, and then I will buy that cryptocurrency. 

05:26

Some stable coins that I prefer to use are USDC, BUSD, and XSGD, which is the Singapore dollar stable coin. In my opinion, one of the most stable currencies in the world right now is the Singapore dollar. So the XSGD is issued at a one to one basis against the Singapore dollar. So if you’re in Singapore, you can actually buy many things and spend this token throughout Singapore. Many merchants already accept goods and services. So let’s circle into what type of investors actually use stable coins. 

06:09

I’m going to share six different options for you. traders, cryptocurrency traders, crypto traders swap in and out of stable coins and other cryptocurrencies. 

06:21

Number two is exchanges, 

Exchanges use stables or stable coins to attract global users who have significant trading volume. So exchanges like to get larger client base to larger volume clients. And by offering stables or stable coins, they can attract a more global user and the larger trading volume users. 

06:47

Number three retail user, a retail user can store and move quickly between stable coins and other kryptos to make purchases for goods and services. 

06:58

Number four borrowers who want a loan backed by crypto, which can involve receiving stable coins. 

07:06

Number five lenders, crypto lenders advertise that you can earn high stable yields on your stable coins. 

07:14

And number six, defy decentralized finance stable coins help defy protocols with liquidity in those defy projects. 

07:24

So does this info help you understand a little bit more about what stable coins are? Does this help you in understanding how to use stable coins? I’m excited about your journey in the cryptocurrency market. Continue on your journey and learn more. This concludes our episode for today. And if you liked today’s episode, I’d super appreciate your written review for the podcast. Until next time, make it a great day.

07:55

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