Whether you are trying to escape the market’s volatility or buy a new token, learning how to trade Ethereum for stablecoins is a necessity. But how do you get started? Here’s a thorough step-by-step guide. This article uncovers the benefits of owning stablecoins and answers how to trade ETH for stablecoins. Keep reading for a thorough ETH trading guide and more!
What are Stablecoins: USDC and USDT?
Stablecoins have several categories based on what backs them. For instance, there are fiat-based stablecoins, which are backed by a fiat reserve in banks. On the other hand, there are also algorithms, cryptocurrencies, and commodities back other stablecoin categories.
USDC and USDT (Tether) are both fiat-based stablecoins with values pegged to the US dollar. Since they are backed by fiat currency, they reflect stability as fiat currencies are less volatile. However, it is noteworthy to know that stablecoins are not free from volatility. Like fiat currency, they are also subject to trends in the market.
How to Trade Ethereum for Stablecoins Using Breet
There are several ways to convert your ETH to stablecoins. However, your best pick is through the leading over-the-counter (OTC) crypto platform in Nigeria and Ghana, Breet. Trading with Breet’s OTC solution is hassle-free and incredibly rewarding. The entire process only takes a few minutes, and you get your USDT or USDC quickly.
To begin the process of converting ETH to stablecoins, the first step is to open a Breet account. You can download the mobile app on Google Play Store or App Store. For easy accessibility, the web version is also an option. Once you have completed the KYC and now have an account, here is the step-by-step process you need to follow:
- Verify your exchange pairs and details.
- An estimated transaction time will pop up.
- Transfer your ETH to a one-time deposit address and wait a few minutes.
- You’ll automatically receive your USDT/USDC in the address you provided.
On the Breet App, you have access to over 170 trading pairs. So you can trade ETH for an array of other cryptocurrencies. Remember to verify the exchange pairs and perform the exchange within the provided window.
Why Trade Ethereum for Stablecoins
The use cases of stablecoins mirror that of most cryptocurrencies. However, their stable value makes them more versatile. Investors have easier ways of sharing funds and lending/borrowing with stablecoins. Here are some reasons to trade ETH for stablecoins:
1. Risk Reduction: While the crypto space is profitable, it is highly volatile; it fluctuates rapidly and can lead to massive profits or otherwise. However, spreading your crypto investment across different crypto assets with varying risk profiles can help manage the risk. USDC and USDT top the list of available stablecoins.
2. Better Flexibility and Control: You may need to explore new projects, and ETH isn’t the most flexible option. The coin has restricted trading pairs, which might limit your ability to explore new projects. On the other hand, selecting coins such as USDT allows you to make trades seamlessly as it is not limited by trading pairs.
3. Passive Income: Want to hold, stake, or dabble in yield farming without having your eye constantly on the market? Then, stablecoins are a great starting point. This is especially true for beginners who are new to the volatility of the market and aren’t down for the risk that comes with it.
Frequently Asked Questions About Trading Ethereum for Stablecoins
Which is better: USDC or USDT?
When deciding between USDC and USDT, personal preferences, use cases, and liquidity are factors to consider. Depending on these factors, either option can be more appropriate for you.
Is ETH a stablecoin?
No. Stablecoins are pegged to real assets, which confers stability. Ethereum is not backed by real assets; hence, it is not a stablecoin.
What are the types of stablecoins?
There are four major types of stablecoins based on their collateral structure. They are fiat-backed, crypto-backed, commodity-backed, and algorithmic. Common examples of stablecoins are USDC, USDT, DAI, BUSD, and TrueUSD.
How do you trade ETH for stablecoins for free?
The best way to swap your Ethereum is with Breet App. Breet’s user-friendly interface guides you through each step, making sign-up and Ethereum-to-stablecoin swaps seamless. The process is straightforward, with a few clicks and minimal fees. With Breet App, you get a spectacular and automatic experience.
Where can I trade stablecoins for other cryptocurrencies?
Breet App has over 170 trading pairs, so you can easily swap your stablecoins for any crypto asset, whether it is USDC or USDT. All you need to do is visit Breet to get started. Once you have an account, you only need to search for your desired asset and swap it quickly.
Stablecoins are incredible assets and integral for building a well-diversified and flexible portfolio. Trading Ethereum for a stablecoin, like USDT or USDC, doesn’t have to be challenging. With crypto-trading platforms like Breet App available to Ghana and Nigerian traders, you can seamlessly swap your ETH for stablecoins for a more stable portfolio.