Want to start investing in cryptocurrency without the fluctuations that come with it?
Then stablecoins might just be what you need.
As the crypto industry develops, so does varieties of opportunities for investors to diversify their investment and make more money.
So, What are Stablecoins?
Stablecoins are coin deals that offer predictable returns for your cryptocurrency.
They may be in the form of stable cryptocurrencies pegged to other currency denominations, or a pool of crypto temporarily locked up for a particular period of time.
Types of Stablecoin Investments
There are several ways to invest in Stablecoins. Whichever method you use would depend on your short-term and long-term strategy for growing your crypto.
Here are the most popular Stablecoins investment strategies:
Stable crypto stocks
This is the simplest form of stablecoins investment. It is called the collector’s strategy that is used to hedge against local currency inflation.
All you have to do is collect different stablecoins that are pegged to currencies such as the dollar.
Coins like USDT and BUSD are popular stablecoins that are pegged to the dollar. So, they are backed by a reliable Fiat currency.
Stablecoin Index
There are Stablecoin indices that help you grow your Stablecoins in return for some interests.
Normally, Stablecoins such as USDT or BUSD do not grow. They only let you keep your money safe from inflation.
However, there are some Stablecoins indices that are backed by crypto and allow you to invest your money and get between 5% to 10% ROI per annum.
What these Stablecoins indices do is convert your crypto to cash and invest in traditional dollarized investment that yields good returns.
They then share the profits with investors and convert the earnings back to the initial Stablecoins in your crypto wallet.
Crypto ETFs
Crypto ETFs are a risky type of investment. However, there are those who are already skilled at managing crypto ETFs.
So, what they do is form an ETF club that acts as a Stablecoin investment, where anyone can invest any type of cryptocurrency and get a ROI after a particular period.
A platform like Binance has pioneered something like this.
They allow investors to lock their Bitcoin, Ethereum, USDT, Ripple, etc for a particular period of time and get a ROI of between 5% to 10%.
The good thing about this type of investment is that your crypto is safe. If you invest 10BTC, you’d get back your 10BTC with interest at the end of the Investment period.
The platform simply takes your investment and trades it with other cryptocurrencies for a profit. The whole risk is on the crypto staker, while the investors are offered a guaranteed fixed return on investment.
How much ROI can a Stablecoin Investment yield?
A Stablecoin investment can yield anywhere from 0.3% to 20% depending on the type or structure of the Investment.
Typically, the higher the risk of investment, the higher the higher the ROI that would be on offer.
Best Stablecoins to invest in
The best Stablecoins to invest in would depend on your investment strategy.
Are you looking to just hold some crypto as a form of hedging your money against inflation?
Then coins like USDT, USDC, BUSD or BNB.
Are you looking to grow your money without taking too many risks?
Platforms like Binance offer Stablecoins investment opportunities such as locked crypto staking and crypto Savings that offer competitive interest rates without letting you assume too much risk.
Popular Stablecoin Funds
There are many Stablecoin Funds in the form of Crypto savings, Crypto ETFs, and crypto indices that lets you grow your money with varying levels of risk.
Here are some of them:
- Binance Eth 2.0 Staking
- Binance BNB Vault
- BLOK, BLCN & LEGR ETFs
- CMC crypto 200 index
- Nasdaq crypto index
- Club/Celebrity fan tokens
Stablecoins Stock Price
There are different forms of stablecoin stocks that can be bought for various prices.
Fiat or platform based Stablecoin stocks have a definite price, but crypto-backed Stablecoins do not have a stable price.
Here are some of the most popular Stablecoins and their prices:
- 1 USDT = $1
- 1 USDC = $1
- 1 BUSD = $1
- 1 BNB = $499
- PSG fan token = $34