Everyone who has come across bitcoincash, either you bought it or earned it through blogging would probably have noticed the volatility of bitcoin cash and those who intend to invest in bitcoin cash for the long run can simply take advantage of this upward and downward movement of the market price.

Volatility is great for investors who wish to hold bitcoin cash for a longterm as they would maximize profit by capitalizing on the frequent upward and downward movement of the crypto market value. The best assets to use to take advantage of this volatility are stable coins.

What are stable coins?

Stable coins are crypto currencies designed to maintain a stable price with little or no change over a long period of time. These stable coin values are tied to the value of existing fiats of different denominations. They are notable for their similarities and equivalence to local fiats such as US dollar, Euro etc

Why you need to consider stable coins.

Many people often shy away from stable coins as they believe they would never make profit hodling them for a long time but are ignorant of the advantages stable coins present in the crypto space.

Looking at the bull run bitcoin made after its previous halvings. The increase in value made many to acquire as much as possible hoping to capitalize on its increase in value and many would simply gnash their teeth when they see the opposite happen after they have banked so much of it.

What stable coins offer...

Stable coins allow investors of bitcoin cash or people who might have earned bitcoin casn and wish to hold for a long term maximize their profit...

Its simply allows owners of bitcoin cash to swap to a stable coin whilst the market value of bitcoin cash goes very high and looks the go down the coming weeks. They can simply swap back to bitcoin cash when it has dropped massively capitalizing on the low market value and gaining more bitcoin cash. They repeat the process when the price goes up again and continue to capitalize on the upward and downward movememt of the bitcoin cash value without leaving the crypto space.

This process has been used by many crypto investors to capitalize on the volatility of crypto currency. Its also helps them evade tax and charges if they had opted to swap to their local fiat when the price looks to take a downward slope.

Stable coins would always play an important role in the crypto space as long as the volatility of crypto currency remains a thing of worry.

There are different types of stable coins around but one which has been widely used according to research is the USD Tether (erc-20) which makes use of the ethereum blockchain.

If you intend investing in bitcoin cash and maximazing profit then you might want to look at stable coins.

Thanks for reading.