What is Stablecoin?

Cryptocurrency is a tricky subject. This is because its a very new phenomenon. It has been around for over 20 years, but hasn’t really made the news. Yet. If you’re anything like us at Guardian Money, you don’t know a lot about this new thing, so here we are trying to give a rundown of the concept.

Cryptocurrencies are designed to be secure and transparent and much like cash they can’t be altered or counterfeited. You can hold a Bitcoin in your hand, and you can send it around the world without it being cloned. It’s basically a digital money, one made up of very small parts.

What’s more, cryptocurrency can also be used for many different things. Yes, they can be used for investment. Yes, they can be bought and sold. Yes, they can be traded. But also, there are many different currencies which we don’t need to get into at the moment, as they can be quite complicated.

There’s even a currency called Stablecoin. They are an attempt to make the cryptocurrency world as functional as real currencies.

So, what is a stable coin?

Stablecoins are ‘virtual’ money that operate very much like traditional currencies. They are issued by their own banks and regulated by central banks. The virtual coins are designed to be stable, predictable and easy to exchange for other currencies. There’s no such thing as a ‘stablecoin’ for the real currency, as it could all go to hell at any time. However, many of the coins are considered to be ‘stable’, meaning that they won’t fluctuate drastically in value.

A coin is a bit like a fiver. It’s one piece of very small value that can be exchanged for a real currency, including pound sterling.

Here’s how they work…

The way this works is that you set up a Bitcoin (or, for those who prefer to use digital cash, the equivalent Bitcoin) using an online exchange. This means that you set up an account, your balance will be available in the same way as you would a bank account.

You can then use the funds to purchase a digital coin which is much like the real currency, with each digital coin representing one pound. This can then be used in a transaction to complete a payment, either in the real world, or online.

The alternative to this is to create your own money. This means that you can set up an account with your own cryptocurrency, set it as the ‘real money’, and then buy and sell coins for real money. This is where it gets complicated and it’s all very confusing, so we’re going to try and explain it in simple terms.

To buy a coin, you need a wallet. You can buy these online, or offline. When you buy the coin, you can send it to yourself, or you can send it out to someone else.

Once you have a wallet, you can send money to it. You can send it to another digital wallet or a bank account. The amount can be transferred through any method available. If you are using Bitcoin to send to someone else, the Bitcoin is going to be converted into whatever the other person is using to send you.

So, if you wanted to send £10 from your Bitcoin wallet to someone else’s, the money would be transferred to their wallet, be converted into Bitcoin and sent back to you.

You can then convert it back to pound sterling by sending it back to the first person and transferring it back to your Bitcoin wallet.

So, how does the conversion from currency to coin work? Well, if you have a one Bitcoin (this is a physical coin, its easy to hold in your hand), you’d send it via the transfer service, they send you the transfer receipt.

They send it to the address that you have stored on your transfer page, which will allow you to move the £10 into your Bitcoin wallet.

Then, they send you a transfer receipt. This is the receipt for the transfer. It shows the amount of Bitcoin that you received.

Then you can send it anywhere you like using any payment method.

In reality, it’s a lot more complicated than this, but thats the general process.

The point of a currency is that people can trade it for one another. It’s easy for one person to give a good piece of money to another, and the value remains stable. If someone wants to buy a product, they have a choice to take either money or a product. The ‘money’ is priced according to the value of the currency. If the currency rises in value, then the goods that are traded for this money go up in value.

To set up a currency, you create a token, which you can do via the exchange. For example, you create the token ‘£’ and you place it on the exchange. This means that the £ is there, on the market, which means that people can trade it and use it to pay for anything that it’s accepted for.

This is the equivalent to setting up a company or a corporation, where someone else pays you to set up the company or to trade on the stock exchange. The exchange allows you to sell your own goods or services and the money that you receive from the exchange is the money that you own. The exchange is the equivalent of the stock exchange, so you would be trading stock.

It’s important to point out that there is no actual exchange of physical money or goods taking place. The way that money exchanges hands in the real world is by what are called transfer transactions. These are the transfers from one person to another. These transfers can take place electronically.

Daily Crypto Headlines

Get the Daily Crypto Headlines from CryptoTimes at your favorite social media platforms.

Latest stories

You might also like...