With stablecoins, the cryptocurrency space really has become a lucrative and serious alternative to the traditional financial banking system. While you don't get any significant interest from your local bank, you can earn lucrative rewards from your stablecoins. That's also one of the main reasons why I prefer cryptocurrencies, especially stablecoins over fiat.
Let me explain what stablecoins are, what advantages they have, and how you can buy them on Binance with your credit card in five simple and easy steps.
What Are Stablecoins?
Stablecoins are a special class of cryptocurrencies and they are an essential part of the crypto economy as a whole. Stablecoins attempt to offer price stability relative to traditional cryptocurrencies with high price volatility like Bitcoin. The market value of a stablecoin is pegged to the value of a relatively stable reserve asset like the US dollar or gold. You can say that stablecoins are designed to mimic commodity assets or fiat currencies whilst they exist as a cryptocurrency on the blockchain.
Of course, stablecoins are also subject to the market's buying and selling forces. For this reason, the price of a stablecoin is not always strictly one US dollar. The value of a stablecoin is rather floating around the target price.
Currently, you have to differentiate between four different types of stablecoins: commodity-backed stablecoins, fiat collateralized stablecoins, algorithmic stablecoins, and cryptocurrency-backed stablecoins. Always keep in mind that a collateralized stablecoin that relies on a fluctuating asset like another cryptocurrency can be very risky.
What Are The Advantages Of Stablecoins?
Stablecoins are extremely important in the crypto economy as they have different advantages.
First of all, stablecoins offer stability in a highly volatile market. This is the main reason why investors go into stablecoins. They provide the same value to cryptocurrency investors and traders as fiat currencies in traditional markets. For example, while traditional investors have the possibility to allocate portions of their portfolios into cash or gold when volatility rises, cryptocurrency investors can move to stablecoins.
Stablecoins are also a quick and efficient medium for traders to move into the cryptocurrency markets fast. Cryptocurrency investors often turn to stablecoins under a volatile market climate, especially in times of a bear market like we are experiencing right now. By going into stablecoins, you can stay in the cryptocurrency markets. This enables you to move faster between trades. You don't have to wait days to transfer from fiat money and you also don't have to pay high fees.
Stablecoins are also bringing more liquidity and volume to the whole cryptocurrency market as stablecoins inspire confidence in the cryptocurrency market. As more people are more comfortable with engaging in the cryptocurrency markets, the number of market participants will also increase.
Finally, you can also earn interest on your stablecoin savings at rates that are much higher than at a traditional bank. For me personally, enjoying these high interest rates is the biggest advantage of holding stablecoins.
By the way, you can directly start earning interest on your stablecoins that you have bought with your credit card on Binance. It is safe lucrative and easy. I explained it in one of my recent posts here on my Publish0x blog step by step: How To Start A Profitable Passive Income Stream With Binance Savings
TOP 3 Stablecoins by Market Capitalization
Among the TOP 10 cryptocurrencies are currently three stablecoins. The three most popular stablecoins by total market capitalization are Tether $USDT, Binance USD $BUSD, and USD Coin $USDC.
1. Tether $USDT
Tether $USDT is currently located on market cap rank #3 with the highest total market capitalization from all stablecoins of $72,567,902,630.
2. USD Coin $USDC
USD Coin $USDC is currently located on market cap rank #4 with a total market capitalization of $54,159,330,386. $USDC is a fully collateralized US dollar stablecoin.
3. Binance USD $BUSD
Binance USD $BUSD is currently located on market cap rank #6 with a total market capitalization of $18,094,400,385. It is a stablecoin pegged to USD that has received approval from the New York State Department of Financial Services (NYDFS). The $BUSD reserve assets are subject to monthly audits by independent third parties in order to ensure that the supply of all $BUSD tokens is really fully backed by US dollars.
Of course, $BUSD is most actively traded on Binance.
By the way, a piece of great news regarding these TOP stablecoins is that Binance has just announced that you can now covert $USDT, $BUSD, and $USDC stablecoin pairs without any fees!
How Can You Buy Stablecoins With Your Credit Card On Binance?
The credit card is one of the various payment methods to buy crypto other than a fiat bank deposit or e-wallets. As the credit card is the fastest method to purchase crypto, I will show you how you can buy stablecoins with your credit card on Binance in five easy steps.
Step 1: Log in to your Binance account, click on "Buy Crypto" and then click on "Credit/Debit Card"
If you don't have a Binance account yet, please consider using my invitation link with the invitation code E3PGAJCE for signing up. When you use it, it will save you trading fees each time you perform a trade on Binance. Don't forget about this possibility when you introduce a friend to cryptocurrency as it will save both of you some money.
Step 2: Choose your fiat currency and enter the fiat amount you would like to purchase
On Binance, you can buy crypto with different fiat currencies. So choose your fiat currency and enter the fiat amount that you want to spend. Then Binance will automatically display the amount of cryptocurrencies that you can get in exchange for your fiat.
Step 3: Click on "Add new card", enter your credit card details and your billing address, and click on "Add Card"
As you are using a new credit card to purchase crypto on Binance for the first time, you have to add your card, either a Visa card or a Mastercard, to your Binance account. Click on "Add new card", enter your credit card details as well as your billing address, and click on "Add Card".
Please keep in mind that you can only pay with credit cards in your own name.
Step 4: Double-check your payment details and confirm the order
Always take your time for step #4. Double-check the payment details and confirm your order. After each minute, the price, as well as the amount of crypto that you will receive, will be recalculated. You can also click the "Refresh" button to see the latest market price. The fee rate is 2% of the transaction amount.
Step 5: Verify your payment on your bank's OTP Transaction Page
When you make a purchase with your credit card on the internet, you frequently have to verify your payment on your bank's OTP Transaction Page. This is also the case when you purchase cryptocurrencies with your credit card on Binance. Simply, follow the on-screen instructions to verify your payment. This is all you have to do to buy crypto with your debit card on Binance.
This is basically all you have to do. However, if you still have questions about the process, make sure to check out the Binance FAQ page. There you will also find a short explainer video that you can watch.
My Final Words
I hope that I could point out how easy it is to buy stablecoins with your credit card on Binance and why it is beneficial.
Now that you have your own stablecoins on your Binance account, you should consider putting them to work. Binance Savings is an easy and safe way to earn daily interest on your stablecoin savings. So make sure to check out one of my previous posts with the title "How To Start A Profitable Passive Income Stream With Binance Savings".
Also, if you plan to buy stablecoins with your credit card on Binance today, please consider using my invitation link for signing up. If you use my invitation link with the invitation code E3PGAJCE for signing up then it will save you trading fees each time you perform a trade on Binance. If you don't use it, you won't get any trading fee rebates. it is a classical win-win situation as you are also supporting me when you use my invitation link without any additional cost. It is like giving a free tip on Publish0x.
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