Stablecoins and cryptocurrencies: the investment of the future

Over the years, financial markets have been growing, the values of currencies have varied and different payment mechanisms have been created thanks to new technologies. There are people who continue to rely on traditional ways of managing, storing, transferring and withdrawing their money, for them banks are the safe place to keep their finances “safe”.

On the other hand, there are people who rely on new savings and money management alternatives, who every day seek to find new ways to invest, manage their financial capital and reduce the high administration costs of traditional banks.

Stablecoins and cryptocurrencies are the product of the creation of these new ideas of managing finances in an easier way, 100% digital and in a decentralized way. As of today, there are approximately 10,000 cryptocurrencies around the world, which are stored in different digital wallets. (Learn more about cryptocurrencies here).

One of the biggest challenges in the world of digital finance, or for those who are knowledgeable about Fintech, is to recognize Differences between stablecoins and cryptocurrencies, the main advantages of acquiring them and the most globally recognized digital currencies.

First of all, stablecoins, or also stablecoins, are digital currencies that have their values tied to real assets such as the US dollar, also to metals such as gold, silver and platinum, and also real estate. Some of the most recognized stablecoins are USDC, Binance USD and Dai. And where can you purchase these digital currencies? , in different decentralized wallets such as Zulu, SatoshiTango, Buenbit, Binance, Lemon Cash, among others. (Learn more about decentralized wallets.)

On the other hand, we have regular cryptocurrencies, where their value depends on their supply and demand. Some of the most purchased cryptocurrencies globally are: Bitcoin, Ethereum, Cardano, Litecoin, and others. What is the risk of investing in these digital currencies? Here we tell you:

• Some of the cryptocurrencies are not backed by central banks, increasing the level of risk and distrust.
• While you can buy or sell your digital currencies, you can't reverse the operations once they've been made.
• Its value is very volatile, it can change day by day.

In case you didn't know, at Zulu we work hand in hand with USDC (stablecoin), which provide greater trust and support for your financial capital. This tool, being a global payment ecosystem, allows you to carry out the international operations you want at a low cost, get personalized attention and transfer your money anywhere in the world. Sign up for Zulu Transfer.

Unlike regular cryptocurrencies, which have the risks mentioned above, stablecoins such as USDC will always maintain their value according to the price of the US dollar. USDC is maintained thanks to the fact that the dollar is a high-value digital asset and is considered to be the strongest currency today.