Russians started to buy stablecoins in huge quantities following the start of a special operation to stop Ukraine. Let’s figure out the reason why this cryptocurrency is well-known, what you can do to purchase stablecoins, and how it can help in the face of sanctions.
What is a Stablecoin?
For estimating the cost of goods or services, offline people make use of fiat currencies. However, the world of cryptocurrency comes with its own set of metrics, such as the number of transactions on the blockchain, block size, hashrate, and other such things. To add features to the blockchain that are understandable not only to technical specialists as well as to everyday users, we have created digital assets that are linked to fiat currencies or precious metals.
Stablecoins (digital coins) are tied to US dollars (USD) in a ratio 1:1. Tether launched the USDT cryptocurrency in 2015 was the first company to launch this kind of cryptocurrency. There are other stablecoins that are available, like Circle’s USDC or BUSD issued by Binance cryptocurrency exchange. The company’s name as the creator’s last letter is highlighted in the final letters.
Stablecoins convert savings made in fiat to digital currency which can be traded immediately or used to invest. It is also possible to reduce the amount of crypto savings by using stablecoins. If there is significant volatility in the market, your crypto can be converted to stablecoins. Wait for best conditions. What is the best part about stablecoins is that they are utilized to settle your savings and safeguard your funds in times when the exchange rate for the currency of your country is low.
What is the reason for an increase in demand for stablecoins?
Russia has witnessed an increase in the demand for cryptocurrency in the past week to help save money. In addition to the growth in cryptocurrency-exchange deposits as well as an increase in people who use. The second most popular cryptocurrency, after bitcoin, are stablecoins and specifically USDT.
Statistics show that, since February’s end the number of users using various trading platforms has increased by about 3%. Because the USDT stablecoin is able to be used to substitute to cash American dollars, which are not available There is more interest than ever in USDT.
EXMO cryptocurrency platform witnessed an rise in the deposits of rubles. The reason for this is that the Binance exchange is no longer working with Visa and Mastercard bank cards that are issued in Russia.
If you’re a Russian and have moved to another country, crypto, and particularly stablecoins, can be used to facilitate payments between different countries. Stablecoins allow you to swiftly change your savings from rubles to foreign money.
The volume of purchase and sale of cryptocurrencies on P2P platforms, where transactions using cryptocurrencies are conducted between people has also grown. The platform itself acts as an intermediary for the transaction and a guarantee. When a cryptocurrency is purchased, the user transfers the money into his crypto wallet before transferring it onto a credit card.
How to Buy Stablecoins Now
Stablecoins that you purchase on a central exchange is the most effective way to protect yourself from scammers. However, there are restrictions on some sites that make it difficult to Russian passport holders to make use of these coins. As one of the solutions is to use decentralized crypto exchanges (DEX) which do not store user funds. A commission is paid for each operation that takes place on a DEX platform.
This is a partnership model of inter-action on the same terms. Different p2p networks connect users seeking to purchase and sell stablecoins. There are many deals available for buying cryptocurrencies at rubles. The platform also acts as a guarantee for transactions.
The transaction can be completed in two steps
The buyer transfers to the seller’s credit card the amount for which the buyer would like to purchase stablecoins.
The seller transfers the buyer a cryptocurrency to his wallet in crypto.
Only use trusted p2p sites to ensure you do not risk losing your funds. Before making any purchase, verify the order number and percentage of completion. The seller will be more reliable if they have lots of orders. While a low percentage of success and the site is well-known does not mean that you are “thrown” however it is possible to experience delays and slow responses from the seller.
There are two kinds of cryptocurrency exchangers.
Online – When using an online exchanger, the user enters their data in a particular field, receives payment details and rubles, completes the transaction, and receives the cryptocurrency in their wallet.
Exchangers on the internet are automatically serviced and, therefore, when you make a transfer in rubles, carefully check the specified amount, as the robot won’t be able to accept the transaction in the event of an error. A commission of 3 to 10 percent will be required for exchangers.
Offline exchangers function similarly to banks – you are able to make a transaction only when visiting the exchanger.
How to remove the restrictions
Cryptocurrencies are among the few options that can be used to preserve capital in times when the ruble is falling and it is impossible to buy dollars or euro. Similar circumstances have also been observed in Turkey (Venezuela) and Venezuela (Ecuador).
Stablecoins are a good alternative to foreign currencies. Since they are a digital version of the US dollar, they are not subjected to volatility and unlike other cryptocurrencies.
Experts recommend that you use stablecoins for operations that are currently not feasible in Russia due to restrictions. It is recommended to convert these transactions into cash or other decentralized cryptocurrencies after you have completed the process.