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4 options to invest in stablecoins and beat inflation


Among the viable alternatives to store dollars in the face of current restrictions and stay safe from strong devaluation fluctuations of the weight, in the last time the stablecoins O stable coins they became a convenient option for the more conservative savers.

Currently the best known and reference cryptocurrencies such as bitcoin or ethereum are still characterized by strong instability, therefore their use and investment in them continue to be relegated to a high risk environment, marked by the shortage of guarantees.

In this sense, the technical analyst of financial markets and creator of the Academy “Be different”, Gonzalo Pereyra Saez counted to Clarion that, “in a financial reality as unstable as the one in Argentina, inflation can destroy any financial plan that one has.”

“Hence, these assets are presented as a financial solution so much for him common citizen as well as for more experienced investors and entrepreneurs, “he stressed.

Bitcoin or Ether are the best known and reference cryptocurrencies but they have a high degree of risk. Photo: AFP

What are stablecoin or stable cryptocurrencies?

Unlike Bitcoin and the rest of the altcoins, stablecoins are cryptocurrencies with stable value. The most common are usually tied to “fiat” currencies (ie, euro, dollar, etc.). They are also known as “digital dollar”explained Mariano Craiem, Co-founder and CTO of Satoshitango.

He also detailed that they may be endorsed by other cryptoactives or, the less frequent, by algorithms that meet its stable value. This is how they partly get their stability.

The stablecoins, are the cryptocurrencies with which a first time investor and / or conservative can start investing, and stay sheltered from market fluctuations.

What are the different options offered by the market to invest in stablecoins?

The most used stablecoins in the crypto market are DAI, USDT (Tether), USDC (Coinbase) and BUSD (Binance), with the particularity that all of them have their price tied to the US dollar.

“By having parity with the dollar it is precisely that they provide an experience of usage very similar to US currency, and for that reason it is that they function worldwide as a natural gateway to the crypto ecosystem, “explained the Buenbit spokesperson, Emiliano Limia.

. USDT (Tether) : It is currently the third most valuable crypto in the world. Tether it is pegged to the US dollar. That is why its name comes from the union of USD, an international abbreviation of this currency, and the T from the initial of the company name.

. DAI: It is a currency that is backed by a set of assets that reside on the Ethereum network, and that are visible to everyone at all times online, 24 hours a day, 7 days a week.

. USDC: It is backed by financial assets in the accounts of its creators (such as bonds, currencies, stocks, among others), so each USDC that is generated has its due backing in an asset with a denomination equivalent to 1 dollar.

. BUSD: it is also equal to one US dollar. The particularity of this token is that it is approved by the New York State Department of Financial Services. This guarantees that for every BUSD in circulation there is one dollar in custody. This is issued by Binance and runs within its own blockchain, the Binance Smart Chain.

All stablecoins have their price pegged to the US dollar.  Photo: EFE

All stablecoins have their price pegged to the US dollar. Photo: EFE

What is the profit in dollars that can be obtained by investing in stablecoins?

The way to invest in stablecoins to generate profit is through exchanges. Lately, before the rise of these currencies, these digital platforms have decided to offer tools to generate interest to the saver. In other words, the simple fact of having deposited cryptocurrencies in a wallet it could generate a certain return.

As explained by the financial markets expert Pereyra Sáez, “on the one hand, given that they have a 1 to 1 parity with the dollar, they suppose a escape inflation, while offering a wide margin of liquidity and they are not affected by the existing exchange rate. This makes stablecoins a great alternative to dollarize savings“.

On the other hand, due to its boom, he indicated that “various exchanges have developed attractive ways to make profitable the funds that are held in stable currencies. In this way, stablecoins have not only become a very good option to protect savings, but an alternative to get profitable without taking undue risk“.

It is thus an instrument similar to traditional fixed term. But dollarized already a much more attractive rate. A fixed term in dollars in banks pays rates of 1% per year on average, while, depending on the platform and the stablecoin, it is possible to obtain a rate up to 8%.

For example, the exchange or digital platform Binance gives the alternative “Flexible savings”. This option offers a rate of 6% per year in USDT, and pays the interest day by day. If it is decided to do it under the Blocked Savings modality, the rate increases to 6,3%, although in this case, the savings would be blocked as happens in a traditional fixed term.

For its part, the fintech Lemon Cash, has a similar service with a rate of 7% per year for deposits in USDT, interest is settled on a weekly basis. And a few weeks ago it incorporated the stablecoin DAI with a fixed effective rate of 13% per annum, no variable.

From Buenbit, they assure that as of today, the performance obtained is located around the 15% per annum in DAI, a very attractive number if one takes into account that a fixed term in dollars from a bank hopefully reaches 1% per year.

However, they clarified that the mentioned returns are variable and have fluctuated during the year between 7 and 15%, this implies that future returns are not guaranteed but rather they are estimates based on current daily performance.

It is invested in stablecoins through apps and digital platforms of different companies that operate with cryptocurrencies.  Photo: Archive

It is invested in stablecoins through apps and digital platforms of different companies that operate with cryptocurrencies. Photo: Archive

How to invest in stablecoins?

As for how to buy stablecoins, it is quite simple like registering in an app or digital platform such as SatoshiTango, Buenbit, Binance, Lemon Cash, among others, transfer pesos or dollars, and make the purchase.

On the issue of liquidity it is also decisive, in the bank, it is not possible to use the money until the expiration of the term. When working with stablecoins the money will be available at the moment in which the saver wishes to withdraw it.

There is no minimum amount to invest, and in case you want to withdraw or sell stablecoinsIt can be done at any time, 24 hours a day, 7 days a week. Nor is any type of commission charged for opening an account or for carrying out operations.

The great additional advantage is the possibility of generate interest. With the push of a button, the user can invest their stablecoins and thus obtain daily returns.

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