Many people are in a hurry to switch to stack coins because of their ability to eliminate the risk of cryptocurrency positions. A stablecoin can be linked to any conceivable stable asset, such as a digital asset such as Bitcoin (BTC), or a fiat currency such as the US dollar. In theory, if a digital asset is pegged to the US dollar, a digital currency value of $ 100 should mean $ 100 in an asset backed by a secure reserve, such as a bank account. stablecoins are very useful; The use includes secure transfer of tokens between exchanges and protocols, lending of tokens or making payments. For this reason, they have also quickly become the entry point into the world of cryptocurrency for beginners.

Unlike Bitcoin, Ethereum (ETH), or other cryptocurrency projects, the price of a stablecoin is good and stable, and does not always offer the opportunity to earn big profits. In this case, profits usually come down to new innovative products entering the market, such as peer-to-peer loans. With peer-to-peer lending, users can take advantage of a cryptocurrency lending platform to give away their stack coins. The interest rates in this case are often much higher than in a traditional savings account.

Users choose a platform that charges a high interest rate beyond the price paid by the end user, the difference being known as the spread. The difference lies in how the lending platform will pay the lenders. Remember that this process can be compared to having assets in a regular bank account. After you deposit your money, traditional banks will deposit the money or lend it to others. They then distribute some of the profits they collect daily, weekly or monthly.

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Some platforms offer a user interface similar to a traditional bank; The only difference is that higher interest rates are often offered. While it may be more risky than keeping your money in a traditional bank, stablecoins are also more attractive as investments than traditional cryptocurrencies because the probability of a smaller withdrawal is less than the user they started with.

To illustrate this concept, let’s say you buy a cryptocurrency that you will receive an interest rate of 10% each year on a particular platform. This is an attractive interest rate and more than what you would earn on traditional high interest savings accounts. However, the underlying asset also carries a higher risk, which means for users that they may end up losing their money if the price falls (and probably will at some point). Even with a buffer stock of 10%, it is not uncommon for sharp price fluctuations to result in the price of these assets being much lower than you would expect if you chose the wrong timing.

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On the other hand, stack coins almost guarantee that the amount you invest is equal to the amount you get back. For example, 850 USDC tokens, each priced at $ 1, will always give 850 $ 1 tokens. In theory, prices should always move sideways, as the asset that supports this (in this case the US dollar) will always be worth $ 1.

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While cryptocurrency lending provides an opportunity for stablecoin holders to generate higher returns, they do little to enable users to accumulate digital assets such as Bitcoin. To solve this problem, Matrixport has released a new user-friendly investment project for cryptocurrency known as BTC-U Range Sniper.

The new Matrixport product offers users an annual income (APY) of 6 to 200%, which can be paid in USDT, BTC or USDC. The amount is determined by the price of BTC when calculating. During the calculation, if the price exceeds the specified range, the user will be paid at least 6% per year in US dollars. However, if the calculation is below the specified range, the underlying investment will be converted back to Bitcoin and the user will receive the same minimum rate of 6% per year. In an ideal scenario, the price is within a predetermined increase, which allows users to earn up to 200% per year.

When asked about their new offering, Matrixport’s co-founder and CEO John J. summed up the initiative as follows: “Stablecoins are an important downside and a great starting point for curiosity into the crypto space. However, many stablecoin holders now want to accumulate BTC while earning higher returns.

Source: CoinTelegraph