How to earn with crypto without any risk
When it comes to crypto, we all know the risk factor due to unregulated nature of crypto currencies.
But what if I tell you that you can up to earn 2–3% returns in every 5 days without any risk factor. PS- This trick works with non dollar currency only
Firstly, I am not a financial adviser and this is not a financial advice
What are stable coins?
Stable coins are the coins whose value is fixed to any asset value and their value does not changes with the demand and supply.
There are more than hundreds of stable coins whose value is fixed to a fiat currency or to the value of some precious metal like gold and silver. But the most important of them is USDT.
Tether (USDT)
Tether (USDT) was designed to hold a one-to-one value with the US dollar. The coin exists on many blockchains and has experienced rising trading volumes and improved liquidity over the past few years.
Like other stablecoins, USDT is useful for trading cryptocurrencies as it allows traders to avoid market volatility that is common to BTC and other crypto assets. Using stablecoins also removes the extra costs and delays of converting between crypto and fiat currencies.
But on exchanges, the price of USDT fluctuates in a gap of around 2% due to several factors. To earn passively, all you have to do is buy USDT when its price is low and sell it when its price is a little high. By observing the graph, you can know that this cycle takes around 5 days.
This is the graph of USDT INR and here you can see that the price of stable coin fluctuates but does not go much down. And when the price goes down, it shoots back up. Even when the volume of USDT is high, the price remains within the fluctuation range.
Some Popular Stablecoins
i). Tether (USDT) — This is a fiat-backed Stablecoin and also one of the popular Stablecoin according to the market capitalization.
ii). Binance USD — This is a dollar-backed Stablecoin that was launched in 2019.
iii). Digix Gold — 1 gram of gold is equal to 1 unit of Digix gold.
iv). Libra — One of the most controversial Cryptocurrencies of all time.
Do stablecoins have any drawbacks?
There are a few drawbacks with stablecoins to keep in mind too. Because of the way stablecoins are typically set up, they are centralized and governed by an organisation. So, when you buy stablecoins, you have a central authority figure holding power over your funds.
Also these centralized organizations can withdraw the issued stablecoins at any moment since the code inside the stablecoins allows them to burn or freeze these coins. Naturally, they can also issue more stablecoins if they see fit.
So the risk is always there but adaptation of USDT is very wide and it is used in every crypto exchange. So this is the best option if you consider trading in stablecoins
