Russians began to purchase stablecoins in huge quantities following the launch of a special operation to stop Ukraine. Let’s discover why this cryptocurrency is so popular, how to buy stablecoins and who it can aid in the face of sanctions.
What is a Stablecoin?
The use of fiat currencies in the world of offline to determine the price of products and services. The world of cryptocurrency comes with specific metrics that include the number of transactions, the size of blocks, and hashrate. We created an electronic asset that is linked to fiat currencies and precious metals, to enhance understanding of the blockchain’s features.
Stablecoins are digital currencies that are linked to USD (the value of USD, the US currency) in a ratio of 1:1. Tether launched its first stablecoin in 2015, USDT. There are various stablecoins that are available, like Circle’s USDC or BUSD created by the Binance cryptocurrency exchange. The last letter denotes the company that developed the coin.
Stablecoins allow you to convert fiat savings into digital currency, which can be immediately traded or invested. It is also possible to reduce the amount of crypto savings through stablecoins. If there is a lot of volatility in the market, your crypto can be converted into stablecoins. Wait for most favorable conditions. Stablecoins can be a good alternative to buying foreign currency in times when exchange rates are unstable. This allows for quicker settlements as well as security.
Why has the market for stablecoins grown?
Russia’s need for crypto to protect savings has increased in the last two weeks. The number of cryptocurrency users has increased as and the volume of ruble deposits that are made on exchanges for cryptocurrency. In addition to bitcoin, the second most popular cryptocurrency is stablecoins. In particular USDT.
Based on statistics from visits to different trading platforms, the amount of transactions has grown by 2-3 times since February. Since USDT is a stablecoin that USDT stablecoin can be used as a replacement for cash American dollars that is currently unavailable, there is more demand than ever before for USDT.
The EXMO cryptocurrency exchange witnessed an increase of ruble deposits. Binance has removed Russian Visa and Mastercard bank card that are issued in Russia.
Cryptocurrency and Stablecoins are both convenient methods of transferring money between different countries, even when Russia is subject to Western sanctions. Stablecoins can be used to convert savings made from rubles into foreign currency.
To facilitate transactions between individuals using cryptocurrency, the amount of cryptocurrencies being purchased and sold on P2P platforms has increased. The platform functions as an intermediary, guarantee and facilitator of the transaction. After purchasing cryptocurrency the purchaser transfer it first to his crypto wallet, after which he transfers it to a credit card.
How to purchase stablecoins on the internet
Crypto Exchanges
The best way to safeguard your self from scammers is to invest in stablecoins via an exchange that is centralized. Some of these sites have put in place restrictions which make it difficult or even impossible for Russian passport holders, which makes it extremely difficult to access certain of them. As one of the solutions is using decentralized crypto exchanges (DEX) which don’t store funds of users. When you make a transaction on a DEX platform there is a fee for a specific blockchain is paid.
P2P platforms
This is a model that lets partners interact on equal terms. Different P2P networks connect users seeking to purchase and trade stablecoins. This is where you will get amazing deals on buying crypto currencies for rubles. The platform acts as a guarantor to the transaction.
Two steps are needed to complete the transaction:
The buyer will transfer to the seller’s card the amount he wants to buy stablecoins.
the seller sends the buyer a cryptocurrency to his cryptocurrency wallet.
Choose token to protect your funds. Important: Prior to making any transaction, ensure that you confirm the number of orders accepted and the proportion of the orders that were fulfilled. The seller will be more trustworthy if they have numerous orders. A low rate of success for a site that has a well-known and large audience will not automatically mean you are “thrown”, but it increases the chance of delays and slow seller response.
Exchangers
There are two types if cryptocurrency exchangers.
Online – on the exchanger online users input their details into a specific form, gets his payment information in rubles, then makes an online transfer, and then receives cryptocurrency into his wallet.
Online exchangers are serviced automatically, so when making a transfer in rubles, make sure you check the correct amount as otherwise the robot will not acknowledge the payment in the event of an error. A fee of 3-10% is required for exchangers.
Online exchangers are the same as branches of banks. This means that you can perform transactions whenever you go to the exchanger.
How do I get rid of it?
Cryptocurrencies have become one of the best alternatives to save capital in the face of an eroding ruble as well as the inability of purchasing dollars or euros. Similar situations have already been observed in Turkey and Venezuela.
As a substitute for other currencies, stablecoins can be the most suitable option because they’re essentially a digital analogue of the dollar. Additionally, they aren’t subject to volatility, unlike other cryptocurrency.
Experts recommend that you use stablecoins to carry out operations currently not possible in Russia because of the restrictions. Once you’ve completed these operations, it’s a good idea to transfer your stablecoins to cash and decentralized crypto currencies.