Stablecoins allow you to turn your money into crypto without the volatility. This type of cryptocurrency is attached to another asset and generally reflects the value of that asset. For example, several stable coins are pegged to the US dollar and are each worth $ 1.
If you are interested in crypto lending, stablecoins are a popular choice. You could earn 25% interest by lending coins, and your stablecoins generally won’t lose value like other cryptocurrencies might. They also work well for transferring money.
Shopping for cryptocurrency can be a little intimidating the first time around. You don’t want to waste money on a scam or pay too many fees. Here is how to buy stable coins safely and without unnecessary additional costs.
1. Decide which stablecoin you want to buy
Start by determining the type of stablecoin you want. Most follow the US dollar, but there are also stablecoins linked to other assets, such as gold or even other cryptocurrencies.
If you already have an account on a crypto exchange, see what stablecoins it offers. Several of the best cryptocurrency exchanges have their own US dollar stablecoins. Here are some examples:
2. Choose a secure crypto exchange
You have two options when choosing a crypto exchange:
- Find an exchange that sells the stablecoin you want. This is what you should do if you are interested in a specific stablecoin.
- Find an exchange you like, then buy the stablecoin it offers. Do this if you are open to any stablecoin that tracks the US dollar. Pretty much all of the major exchanges have at least one.
3. Create an account
Sign up with the crypto exchange you have chosen. The exact registration process depends on the exchange, but it’s usually straightforward. Here is the information you may need to provide to create an account:
- Last name and first name
- E-mail adress
- Phone number
During or after the creation of an account, there is an identity verification process. Exchanges must do this to ensure that the accounts are not used for illegal activities and to comply with tax reporting requirements. The exchange may request the following to verify your identity:
- Date of Birth
- Social Security number
- A scan of a valid identity document, such as your driver’s license or passport
4. Deposit money
Load money into your exchange account so that you can buy crypto. The recommended way to do this is to make a wire transfer from your bank account. Add your bank account as a funding source using the account number and routing number. Then transfer the amount you want. You can do all of this through the crypto exchange.
Keep in mind that the transfer may take several business days to process. You may also need to approve the transaction with your bank, as crypto exchanges can trigger bank fraud detection.
Many exchanges allow you to buy crypto using other methods, such as debit cards, credit card, or PayPal. However, these methods almost always incur additional costs. Credit card purchases can also count as a cash advance, which is more expensive than a conventional purchase. Due to the fees associated with these methods, it is best to pay through your bank account.
5. Buy the stablecoin
Choose the option to buy crypto. Depending on the exchange, there may be a âBuyâ button or page. Select the stablecoin and the amount you want to spend. There will be a preview of the transaction to show you the fees, the total cost, and the amount of stablecoin you will receive. When you’re ready, confirm the purchase.
That’s all you need to do. Stablecoin purchases usually don’t take long, so yours should be available in your account quickly. At this point, you are free to use your stablecoins however you want, whether that is to lend them, transfer them to someone else, or store them in a safe. crypto wallet.
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Lyle daly has a USD coin.
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