Russians began to purchase stablecoins at a large scale following the announcement of a specific operation to stop Ukraine. Let’s find out the reasons why this currency is so sought-after, how to purchase stablecoins and who it can help in the face of sanctions.
What is stablecoin?
In order to estimate the cost of services or goods offline consumers make use of fiat currencies. But the world of cryptocurrencies has its own metrics – the volume of transactions on the blockchain and block size, hashrate and the list goes on. We have created a digital asset tied to fiat currencies, precious metals, in order to improve understanding of the features of blockchain.
Stablecoins refer to digital coins which are tied to USD (the value of the US currency) in a ratio 1:1. The first stablecoin was released by Tether in the year 2015, namely USDT. There are other stablecoins on the market, for instance Circle’s USDC or BUSD which is which is issued by the Binance cryptocurrency exchange. The name of the company that created it is indicated by the letter that ends in.
With the aid of stablecoins savings in fiat currency can be easily converted into digital currency and immediately exchanged or invested. Stablecoins allow you to save your crypto investments. In times of volatility you can transform cryptocurrency into stablecoins to allow you to sit and wait for better market conditions. The main benefit of stablecoins is their capability to serve as a substitute for settlements in cases where the exchange rate is not stable and it’s difficult to buy a foreign one.
What is the reason why demand for stablecoins increased
Russia’s demand for cryptocurrency to protect savings has increased over the past two weeks. In addition to the amount of cryptocurrency users, so has the influx in ruble deposits to cryptocurrency exchanges. Stablecoins, specifically USDT are the second most-loved cryptocurrency, after bitcoin.
Statistics indicate that since February ended the number of users using various trading platforms has grown by 2 percentage. Demand for USDT is much higher than that for bitcoins or other popular cryptocurrencies. Because the stablecoin acts as a substitute for American dollars, it’s difficult to purchase now.
EXMO cryptocurrency platform has seen an increase in deposits of rubles. The reason for this is that the Binance exchange is no longer working using Visa and Mastercard bank cards that are issued in Russia.
The ease of using cryptocurrency and stablecoins for transfers of funds between countries is a big advantage for Russians who have traveled to other countries. Stablecoins can be used to transfer savings quickly between rubles and foreign currency.
Individuals who make transactions using cryptocurrency have witnessed an increase in volume and price on p2p platforms. The platform itself acts as an intermediary between the transaction and a guarantee. After buying a cryptocurrency and transferring the money to his cryptocurrency wallet, and then transfers it to a bank card.
Instructions: How can I buy the stablecoins you need right now
Crypto Exchanges
You can safeguard yourself by buying stablecoins through a centralized platform. Some exchanges have imposed restrictions that make it difficult or impossible for Russian passport holders to use, which makes it extremely difficult to access certain of them. It is also possible to use cryptocurrency exchanges that are decentralized (DEX) which do not keep the funds of users. A fee for a specific blockchain is needed for each operation.
Platforms for P2P
This is a model that allows for partners to interact in a mutually beneficial way. P2P platforms offer users the ability to connect to buy or trade stablecoins. You can find amazing deals for buying rubles in cryptocurrencies. кардан криптовалюта acts as a security for transactions.
The transaction can be completed in two steps
The buyer sends the amount to be purchased in stablecoins to the seller.
The seller sends a cryptocurrency wallet to the buyer.
Only use trusted p2p sites to ensure that you don’t lose your money. It is essential to verify the quantity of orders as well as the proportion of transactions completed prior to you finish any transaction. If you see a lot of orders, it will indicate that the seller has reliability. If the success rate is low, but the site is huge and well-known, this will not mean that you’ll be “thrown” however there is the possibility of delay and slow response from the seller.
Exchangers
There are two kinds of exchangers for cryptocurrency:
– Online: The online exchanger allows users to enter his information, get payment information, complete transactions and then transfer the cryptocurrency into his wallet.
Online exchangers are serviced automatically which means that when you are making an exchange in rubles, carefully check the specified amount, as the robot won’t recognize the payment in case there is an error. A commission of 3-10% will be required for exchangers.
Offline exchangers function in the same way as banks. You can conduct transactions only by going to the exchanger.
How do you get rid
In the wake of a plummeting ruble and inability to purchase dollars or euros cryptocurrency is one of the best alternatives to protect capital. Similar situations are present in Turkey and Venezuela.
As a substitute for other currencies, stablecoins can be the best option, because they’re basically a digital analogue of the dollar. Additionally, they are not vulnerable to fluctuation, unlike other cryptocurrency.
Experts typically recommend using stablecoins to perform operations that aren’t possible in Russia at present due to restrictions. These tasks can be performed with stablecoins. You can then withdraw the coins in cash or a decentralized cryptocurrency.