What is a stablecoin?

A Stablecoin is a fixed-price cryptocurrency where the market value is attached to another stable asset. Differing from normal cryptocurrencies, stablecoin’s are pegged to assets such as certain fiat currencies that can be traded on exchanges, including the U.S. dollar or the Euro. Some stablecoins can be pegged to other types of assets, including precious metals, such as gold, and even other cryptocurrencies. Vertex.Market supports USDT and USDC.

Stablecoins let users enjoy the advantages of digital currencies based on the Blockchain, including security, privacy, low fees, and transparency, while helping to alleviate the problem of extreme price volatility faced by most traditional cryptocurrencies, such as Bitcoin, Ethereum and so on.

People who use stablecoins to make purchases do not have to worry about the day-to-day price fluctuations of traditional cryptocurrencies. Businesses looking for less expensive and more efficient ways to pay customers or whoever overseas could also use stablecoins since they would not have to deal with the conversions of different fiat currencies.

A digital and decentralized currency that is stable and widely available could also be used by people living in certain countries where their monetary systems are unstable and whose restrictive capital controls prevent those individuals from buying goods or services in foreign currencies. As well as to hedge their investments, traders who think that their cryptocurrencies are going to go down in value could transfer their crypto holdings to stablecoins.

The most popular type of stablecoins are called traditional asset-backed stablecoins, also known as pegged cryptocurrency. This type of stablecoin is backed by a traditional asset, such as a national currency or gold. Every stablecoin is pegged at a 1:1 ratio to an asset.

One traditional asset-backed stablecoin is Tether’s USDT. You can buy USDT on Vertex using many different payment methods. You can also buy USDC on Vertex.Market using various payment methods.

There have been arguments made both for and against stablecoins.

Advocates for stablecoins have argued that these tokens act as a perfect model in order to fulfil the key elements of what makes up a currency. This means they offer a medium of exchange, a store of value and a unit of account. Furthermore, stablecoins offer the benefits of the Blockchain while avoiding the unpredictable volatility of cryptocurrencies.

In this case, stablecoins could be the next step towards widespread adoption, which is ultimately beneficial for the cryptocurrency industry.

On the other hand, others have argued that currencies such as the US Dollar are not good collateral owing to their own inflationary nature. Because of this, people say that stablecoins are not a sustainable solution to the very same problem that Bitcoin is trying to solve.

USD-pegged

  • Tether (USDT)
  • True USD (TUSD)
  • Gemini Dollar (GUSD)
  • USD Coin (USDC)
  • Paxos Standard (PAX)
  • Binance USD (BUSD)
  • DAI
  • HUSD
  • sUSD (SUSD)
  • mStable USD (MUSD)

GBP-pegged

  • Binance GBP Stable Coin (BGBP)

EUR-pegged

  • Stasis Euro (EURS)

TRY-pegged

  • BiLira (TRYB)

KRW-pegged

  • Binance KRW (BKRW)

Gold-backed

  • CACHE Gold (CGT)
  • Tether Gold (XAUt)
  • Paxos Gold (PAXG)

Petro (PTR) (oil-backed)

Once on the website, on the bottom right hand side you will see an orange box — click that to enter support, where one of our support staff will be able to answer any questions you may have.

Supported Currencies at the moment are:

  • Bitcoin BTC
  • Ethereum ETH
  • Litecoin LTC
  • Bitcoin Cash BCH
  • US Tether USDT
  • USD Coin USDC

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Vertex Market is a P2P Cryptocurrency marketplace created by a team of crypto enthusiasts trying to solve one of the biggest hurdles in the crypto world.