Stablecoin

There are many stable coins offered from various providers. Most of these are offered from cryptocurrency exchanges, and the are pegged to the value of the dollar. So, they are not an investment or store of value unless you believe in the strength of the USD. The most popular of stable coins is Tether. The only advantage is ease of transfer, or sending between various accounts or wallets (savings accounts)

Stable coins are generally used as a temporary medium to switch back and forth between crypto coins without cashing into and out of USD since some of the less regulated exchanges are not set up for USD trades. Some people think that you can avoid capital gains/losses by using stable coins as a way to cash in and out of crypto coin investments, but in the USA, the IRS considers every trade as a capital gain or loss.. Therefore, I recommend sticking with buying and selling to into crypto's with USD on a fully recognized KYC (know your customer) exchange since you're probably not going to avoid the taxes anyway and they are so regulated that their systems are more trusted than others.

In the end, stable coins are less stable than the USD.

If you can find a KYC exchange and buy crypto there, then your should also have a way figured out to transfer your investment to a wallet in which you control your pass phrase. Then you are safe.

If you do not control the pass phrase, then you do not truly own the investment. Don't loose the pass phase, or you will lose you coins. It's not that difficult.

Let's block ads! (Why?)

Stablecoin