Stablecoins: A way to saving

What's a Stablecoin?

The word Stablecoin refers to those currencies or tokens that have a stable value depending on an associated backup or an algorithm, unlike other cryptom currencies such as Bitcoin and Ether, which vary in price depending on supply and demand.

These well known stable currencies have been created, among many other reasons, to reduce the volatility in the markets where crypto currencies live and to give a security to the investors, traders and users of the crypto world, at the moment of freezing their capitals in a non-volatile asset.

There are two types of Stablecoin:

• Collateralized

These are those whose value is backed by an external agent capitalized in the traditional system. These backups can be: fiat currencies (like the dollar or the euro, the Yen), gold, diamonds, oil, silver, real estate or some set of these.

The best known case of this type of stablecoins is the **USDT (Dollar Tether) or the TrueCoin (TUSD)**).

There are also those supported by other cryptom currencies, such as DAI which is the best known stablecoin in the Ethereum network. In this case the interested parties do not buy directly the DAI cryptomoney, but "produce" it in exchange for 'ethers' which are then exchanged on the platform as a deposit. This is called "Over-collateralisation" and involves leaving a surplus deposit in exchange for some form of financing to reduce risk.

And finally there are those that are backed by real estate and commodities such as gold. In this category we could name G-Coin, which according to its creators is equivalent to one ounce of gold.

• Not collateralized

In the second type, we find those stablecoins that are not backed by any external capital, but through the use of algorithms avoid fluctuations in their price. In these cases, the block chain is the one that controls its fluctuation through the algorithm it uses and intelligent contracts.

In the case of our HIVE community, we have the possibility of using a Stablecoin called HBD or HIVE BACKED DOLLAR.

The HBD is a backup currency used to maintain a stable economy in the network, this currency has the objective of supporting the value of HIVE thanks to a stablecoin, the objective of this cryptomoney is to have a value anchored to 1.00 USDollar in order to serve as a backup to the printing of HIVE, for each certain amount of HIVE a specific amount of HBD is printed. - Wikipedia

Save on crypt coins?

Some people are still not willing to save their savings in cryptosystems and do not do so for fear of their high volatility, and that this will cause them to lose all their capital in a few minutes (despite the inverse possibility of having higher profits than other investment systems as well). This is mainly due to the lack of knowledge about the existence of crypto currencies such as the so-called *Stablecoins which have a value of 1:1 ratio with the USD.

Therefore, today we decided to share this brief information so that in case you do not know them, they can be a viable option to save some capital, and thus be able to save your money for tomorrow.

NOTE: Also, it is important to keep in mind that Stablecoins have a centralized nature, which goes against the principle of the Blockchain. Therefore, these systems should not be trusted blindly in the long run, and should be under constant evaluation by the user. Evaluate the project, the team, that the audits of these companies are being carried out correctly to ensure that the support remains adequate for the supply (in case of collateralized stablecoins).

Saving Tip: 10% Rule First

A very appropriate savings advice, regardless of the amount we earn monthly is the 10% first rule.

This means that as soon as we receive our salary, or our total remuneration of the month for the activities we perform, we set aside if or when 10% (ten percent) of that remuneration, even before making monthly expenses and bill payments.

In this rule, we take as one of the main expenses of the month 10% of our income to our savings account; bank or crypt, with the intention of being able to use it later in any situation that requires it or to invest in the future or to use it in some specific objective.

Thank you very much for reading to us,
goodbye,

ROCEJUMA

Until the next delivery.