The Power of Stablecoins

Why you should hold your funds in stablecoins

In a world of financial volatility, stablecoins provide a haven of stability to protect your wealth.

Let’s take a quick example. If you were a Nigerian investor, here’s an analysis on how different investment scenarios would have impacted your funds between no-interest Naira options, Naira options with interest, and investing in dollars.

This analysis uses parallel market rates.

Now, let's delve into what stablecoins are and why they should matter to you.

What are stablecoins?

Stablecoins are a type of digital asset that are designed to maintain a stable value by being pegged to a reserve asset, typically a fiat currency like the US dollar or a commodity like gold. Unlike other cryptocurrencies such as Bitcoin or Ethereum, stablecoins like USDT, USDC and BUSD aim to minimize price volatility, providing users with a more reliable and predictable store of value. Tied to stable assets like the US dollar, they provide a haven from the constant fluctuations of your local currency.

Why you should leverage stablecoins to build wealth and revolutionise the way you manage your finances

1. Protect Your Wealth from Currency Fluctuation: African currencies have historically experienced significant fluctuations, leading to a loss in the purchasing power of savings. By holding stablecoins, you can shield your savings from these uncertainties. Stablecoins provide stability, as their value remains closely tied to a more stable asset, such as the US dollar. By embracing stablecoins, you can protect the value of your savings and preserve your wealth over time.

2. Instant and Seamless Transactions with Lower Transaction Costs: Stablecoins offer a revolutionary way to transact. You can send and receive money instantly, domestically and internationally with no long waiting periods and exorbitant bank fees. Through a few simple steps, you can seamlessly transact with anyone, anywhere in the world. Stablecoins empower you with the ability to have full control over your finances and eliminate unnecessary hurdles. When compared to traditional banking methods, stablecoins often have lower transaction costs. You can avoid hefty fees associated with wire transfers, international transactions, and currency conversions. This cost-saving aspect makes them an attractive option for individuals and businesses looking to optimize their financial transactions.

3. Diversification and Hedging: Stablecoins provide an opportunity for diversification and hedging strategies. By diversifying your savings into stablecoins, you reduce the risk associated with having all your funds in a single currency. This approach allows you to navigate market volatility more effectively and protect your wealth against unexpected economic downturns.

Overall, stablecoins offer a combination of stability and the advantages of cryptocurrencies, providing individuals and businesses with a useful tool for managing their finances and participating in the digital economy. By embracing stablecoins, you take greater control over your wealth and transcend the limitations imposed by a volatile currency and economic uncertainties.

To embark on your stablecoin journey, we recommend downloading Onboard Wallet. The user-friendly wallet allows you to seamlessly convert your local currency to stablecoins and vice versa within minutes. With Onboard Wallet, you can securely store your stablecoins and gain greater control over your financial assets. Take the first step towards financial empowerment and start exploring the benefits of stablecoins with Onboard Wallet today.

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DISCLAIMER: This newsletter is for educational purposes only and is not investment advice or a solicitation to buy or sell any assets. Please do your own research before making any investment decisions.