chienwei
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from wikipedia
Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals).
common ones are USDT, USDC etc.
there is also one Sg one called XSGD.
for the tokens that are pegged to USD or SGD, they do not appreciate in value, but can be used for investing in platforms like Celsius, Blockfi, Nexo that gives interests/rewards of more than 5% per year. some of these platforms have interest/rewards at 10% a year.
Of course, there are risks.
1) the tokens are not issued by the government. An imperfect analogy is like Grab credits, starbucks credits...
if the company issuing them go bust, there is a real chance tokens become rubbish.
2) the platforms you invest the stablecoins in can close down, hacked, rugpull, scam etc.
An analogy would be using using grab credits to invest in investment products in another company which pays 10% on your grab credits.
using Defi platforms like UNISWAP can mitigate some of these type 2 risks, but it comes with its own code problems, and are not easy for beginners.
Anyone using any of these platforms and has good/bad experience/guidance to share?
Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals).
common ones are USDT, USDC etc.
there is also one Sg one called XSGD.
for the tokens that are pegged to USD or SGD, they do not appreciate in value, but can be used for investing in platforms like Celsius, Blockfi, Nexo that gives interests/rewards of more than 5% per year. some of these platforms have interest/rewards at 10% a year.
Of course, there are risks.
1) the tokens are not issued by the government. An imperfect analogy is like Grab credits, starbucks credits...
if the company issuing them go bust, there is a real chance tokens become rubbish.
2) the platforms you invest the stablecoins in can close down, hacked, rugpull, scam etc.
An analogy would be using using grab credits to invest in investment products in another company which pays 10% on your grab credits.
using Defi platforms like UNISWAP can mitigate some of these type 2 risks, but it comes with its own code problems, and are not easy for beginners.
Anyone using any of these platforms and has good/bad experience/guidance to share?
