Are you new to crypto and you do not know how to buy stablecoins with your credit card? Or are you even a crypto trader and you do not know you can buy stablecoins with your credit card in 5 easy steps? Well, not to worry, you are in the right place. In this article you will learn how you can buy stablecoins on binance in 5 easy steps.
Firstly lets discuss what stablecoins are, the types and the advantages.
What are stable coins?
Stablecoins are a class of cryptocurrencies that attempt to offer price stability relative to unpegged cryptocurrencies like Bitcoin. Stablecoin market value is pegged to the value of a “stable” reserve asset like the US dollar or gold. For example, Binance USD (BUSD), USD Coin (USDC) and Tether (USDT), are all backed on a 1:1 basis with the US Dollar. One BUSD or USDC or USDT is the same as one US dollar.
BUSD is a regulated, fiat-backed stablecoin pegged to the U.S. dollar. For every unit of BUSD, there is one U.S. dollar held in reserve. In other words, the supply of BUSD is pegged to the U.S. dollar at a 1:1 ratio. Holders can swap their tokens for fiat and vice versa. As a stablecoin, BUSD is designed to maintain a stable market value. It allows investors and traders to hold a low-volatility asset on the blockchain without the need to exit the crypto space.
BUSD, USDT and USDC are the most popular stable coins. They are the most traded and most reliable. BUSD has a market cap of $15.76b, USDT has a market cap of $66.9b and USDC has a market cap of $55.9b.
Types of Stablecoins
Commodity backed Stablecoins: Commodity-backed stablecoins are backed by physical assets like precious metals, oil, and property and land holdings. However, each and any of these commodities can fluctuate in price, which could result in a loss of value.
Fiat Collateralized Stablecoins: The most popular stablecoins are backed by fiat currencies like the US dollar or Euro, 1:1. As the collateral isn’t cryptocurrency, this type of stablecoin is considered an off-chain asset. The fiat collateral is kept in reserve with a central issuer, and must at all times remain proportionate to the number of stablecoins in circulation.
Algorithmic Stablecoins: These stablecoins don’t rely on fiat or cryptocurrency as collateral. Instead, algorithmic stablecoins are kept stable by algorithms and smart contracts that manage the supply of tokens in circulation.
Cryptocurrency backed stablecoins: Instead of being pegged to fiat currencies, these types of stablecoins are backed by cryptocurrencies and operate without a central issuer, making them decentralised and on-chain.
Advantages of Stablecoins
- Stablecoins offers stability in a volatile market
2. its quick and efficient medium that lets crypto traders move fast in the crypto market
3. Stablecoins bring more liquidity and volume to the crypto market
4. Easily and quickly transfer assets
5. Earn interest
6. Minimize volatility
How To Buy Stablecoins With Credit Card on Binance?
Step 1: Log in to your Binance account and click [Buy Crypto], then [Credit/Debit Card].
Step 2: Choose your fiat currency and enter the fiat amount you would like to purchase.
Step 3: Click [Add new card], Enter your credit card details and billing address. Click [Add Card].
Step 4: Double-check your payment details and confirm the order.
Step 5: Verify your payment on your bank’s OTP Transaction.
Congrats on reading to this point, now you know how to buy your stablecoins with your credit card in 5 easy steps.
Buy With Cash Balance: https://www.binance.com/en/buy-sell-crypto?channel=wallet &fiat=EUR
Deposit via Bank Transfer: https://www.binance.com/en/fiat/deposit/PHP
Ready To Start Your Cryptocurrency Adventure With Binance? Start by signing up for a binance account if you are yet to have one https://accounts.binance.me/en/register?ref=HA5AVMLH
Next, verify your account. Once you’ve verified your account, follow the steps above and you are good to go.