Stablecoins

Are you into gambling? If you are not, then bitcoin is not a good choice for you. Yes, investing in bitcoin and other famous cryptocurrencies like ethereum, dogecoin, ripple, etc are similar to playing a risky game. Their prices are very volatile and don’t assure good profits in return for initial investment. For those who hate fluctuations and instability, stablecoins are the best investment option. Although they don’t offer huge benefits, investors can still earn profit with stablecoins if they play the game right.

After experiencing extreme price swings, the cryptocurrency communities came to the conclusion that something with less volatility could be a better choice. Stablecoins are built to offer more stability than other cryptos as it is backed by a stronger source. They are pegged to or backed by another asset like fiat currencies, gold, currency basket, other cryptocurrencies, or commodities to make their price steady. Besides, stablecoins emerge as investors’s first option if they opt for less-risky choices. However, passive income in stablecoin is far better than what traditional banks and financial services provides. Although stablecoins are not as successful as bitcon, it has its own set of true investors who plan for long-term investments using the decentralized currency. They mostly go for top cryptocurrencies like Tether (Pegged to US dollar), EURL (Backed by EURO), DAI (Pegged to US dollar but backed by Ether), and USD Coin (another coin backed by US dollar). While investing and yielding benefit is a slow process, some investors earn profits with stablecoins in passive ways. In this article, IndustryWired explores all those fronts.

Earn Interest through Lending Platforms

Earning profit with stablecoins through passive ways or interest is a trending method to get your hands on good money. Despite the platform, most of the interest-earning methods are very similar. Initially, investors have to buy a certain amount of stablecoins to invest them on crypto interest platforms. Then, you have to open an account in crypto loan platforms. After entering the portal, you will be asked to go through a KYC (Know Your Customer) process where you should submit your government-issued ID to confirm your identity. Once the verification process is over, you are ready to deposit your stablecoins in the account for lending. Evetnaully, you will start receiving interest on weekly or monthly basis, based on the platform you have chosen. You can keep your stablecoins in the platform as long as you wish and get long-term interests through the process. 

Get Your Hands on APY Profit

Although getting stablecoin benefits is a common thing when you opt for pegged cryptocurrencies, the scenario is completely different when it comes to getting your hands on other cryptos like bitcoins. To reciprocate this worry, platforms like Matrixport has come up with ‘BTC-U Range Sniper,’ a user-friendly cryptocurrency investment project to offer users with an annualized yield (APY) from anywhere between 6 and 200%, which can be paid out in USDT, BTC, or USDC. 

Buying at Low and Selling at High

This method is more or less like investing in precious metals. For example, if you are buying a stablecoin backed by gold when it is on the dip, its value will eventually go up when the gold price surges. As a result, you can sell it off at a high price when it hits jackpot. However, this doesn’t work well for fiat-currency pegged cryptocurrencies. Since they are very stable, there is no option like buying at the dip and selling at record highs. 

Gaining Arbitrage Income

Arbitrage income method is highly applicable for users who constantly check the cryptocurrency price for changes. You can buy stablecoins on one exchange that offers it for a lower price and sell it on another platform that takes it in for a higher price. By doing this repeatedly, you can gain passive income in stablecoins.