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How to Buy Stablecoins: A Comprehensive Guide

What are stablecoins?

The crypto ecosystem is famous for its volatility. While these conditions can create exciting trading opportunities, these higher risks can be offputting for participants accustomed to traditional finance markets. However, there is an asset class within digital finance that aims to mitigate price fluctuations by pegging their value to fiat currencies and commodities.  These assets are called stablecoins. By tethering their value to a specific anchor, stablecoins can serve as convenient on- and off-ramps for crypto traders to potentially avoid adverse price trends. The stable nature of these cryptocurrencies has made them a preferred choice among crypto traders to navigate risk during market fluctuations.

What are the perks of stablecoins?

Not only can stablecoins offer an alternative to crypto volatility, but their innovative usage within the ecosystem could pave the way for greater inclusion across the financial landscape:

  1. Stablecoins experience less volatility 

The price of digital assets can depend on numerous factors and is known to fluctuate widely and abruptly. Meanwhile, stablecoins peg their value to fiat, crypto, or a related commodity to enjoy the buoyancy and balance of their underlying anchor. For example, the price of USDT is always near $1, with its valuation remaining consistent with that of the U.S. dollar globally. 

  1. They can be quickly transferred long distances

Similar to BTC and ETH, stablecoins run on blockchain networks. This means that users can send funds from one wallet to another without the intermediary of a third-party bank. This can help cut down transaction times and fees, and allow participants to enjoy greater access to remittance and related cross-border services where eligible.

  1. Stablecoins are accessible

Often hosted on digital, open-source networks, participants can typically transact in the crypto ecosystem wherever they have a reliable internet connection. The introduction of stablecoins has the potential to empower un- and under-banked participants to access a range of digital financial services.

  1. They’re the gateway to DeFi services

Beyond just holding a consistent value, stablecoins can also serve as the key to the world of decentralized finance (DeFi). Most crypto lending, borrowing, and earning services rely on stablecoins for payment and reward allocation. 

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How to buy stablecoins securely

Buying stablecoins primarily takes place on crypto exchanges, online platforms where participants can buy crypto using familiar payment methods like credit cards, wire transfers, and online wallets. When selecting a crypto platform, it’s recommended to ensure that it provides access to secure crypto and fiat transactions. Oftentimes, this information can be gleaned from an exchange’s website, or by checking customer reviews on a reputable third-party outlet. 

Step 1: Find a reliable exchange available in your area

CEX.IO operates in over 150 countries and is currently licensed to serve customers in 30+ U.S. states. The company follows local cryptocurrency regulations, passes regular independent audits, and performs internal transaction monitoring to ensure overall quality. These measures contribute to the high-level of security across the entire product ecosystem, where customers can buy USDC and other stablecoins, sell or convert them instantly, or transfer them to a crypto savings account. Check the list of supported countries here. 

Step 2: Set up an account

To get started, just provide an active email address and a valid ID. At CEX.IO, we care about the security of our award-winning ecosystem. That’s why we require every customer to verify their identity right after account registration. This helps us ensure that we follow local and global crypto legislation, and uphold our rigorous KYC/AML procedures. At the same time, we made the verification process quick and straightforward to best accommodate users at every stage of their crypto journey.

Step 3: Link a payment method to add funds

Once the account setup process is complete, preferred payment methods may be linked through a browser window, or via CEX.IO App. This will enable instant use of a card or online wallet during future crypto transactions. To do so: 

  • Go to the CEX.IO Wallet page on the website or open the CEX.IO App.
  • Navigate to the Account Manager tab near the Dashboard. In the mobile app, go to Profile in the upper left, and choose Payment methods.
  • Choose a preferred payment method (credit/debit card, bank transfer, or cryptocurrency). 
  • Next, click the Add account button, and provide the necessary details. 

To top up a wallet balance, click the Add funds button in the upper right of the Wallet page. Please note that this is the same page that may be utilized to buy bitcoin with a credit card. Funds held in a wallet balance can be converted, sold, or traded on Exchange Plus in eligible jurisdictions. 

Step 4: Buy stablecoins instantly with a card

CEX.IO was the first platform that enabled direct crypto purchases with a debit and credit card. Nowadays, this feature is available in CEX.IO Wallet and Instant Buy. CEX.IO customers can buy over 100+ crypto assets via a number of straightforward products and services. For example, participants can choose to buy Ethereum with credit card across our proprietary ecosystem. The whole process usually takes less than three minutes:

  • Choose which currency to purchase. Eligible participants can choose to buy USDT, or a number of other popular stablecoins. 
  • Select the payment currency. The price will be calculated according to the current market price.
  • Add a card or choose a linked payment method.
  • Review the fees and commissions, then confirm the transaction.

In the same way, users can elect to buy crypto with Google Pay and Apple Pay. Customers willing to pay using a wire transfer should request a bank transfer deposit prior to making a purchase. This step is necessary because bank transfers can take up to three days to be completed. U.S. customers can also buy crypto with PayPal, and store stablecoins in a secure online crypto wallet. 

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Beyond volatility

As an alternative to highly volatile crypto assets, stablecoin markets can offer significant liquidity advantages compared to their crypto-to-fiat counterparts. Still, traders should remember that price volatility is a complex phenomenon. The crypto space has lived through a number of monumental stablecoin events, such as TerraUSD's May 2022 crash, Tether's controversial untethering incident in 2018, and USD Coin's surge in 2021.

For a seamless navigation of the unpredictable world of crypto assets, consider choosing a reputable crypto exchange, such as CEX.IO. With a verified account, eligible participants can purchase multiple stablecoins, track live crypto prices, and trade 300+ crypto markets. In addition, CEX.IO offers several ways to earn crypto and accumulate stablecoins without being involved in trading. For example, select users can choose to join our flexible crypto staking program. 

FAQ

Can I store stablecoins at CEX.IO?

We provide secure and intuitive custodial storage for your crypto holdings. Custodial storage means CEX.IO helps keep your private keys safe and can assist in restoring access to funds in the event of lost access. In addition, all customers’ funds are stored on cold wallets, with only company funds accessible on hot wallets enabling users to trade and withdraw funds with greater peace of mind. 

Crypto wallets are accessible through our Wallet website and CEX.IO App, where users can choose to buy & sell crypto instantly. 

How can I trade stablecoins at CEX.IO?

Trading functionality is available on our award-winning Exchange Plus platform. It provides deep liquidity on more than 300 markets, including numerous USDT and USDC pairs. With integrated price charts and advanced analytics tools, eligible participants can study emerging trends, place market, limit and stop limit orders, and utilize API solutions to automate trading transactions. 

Where to learn the latest crypto news and platform updates?

Subscribe to the CEX.IO newsletter, to receive the latest platform news and updates. Just complete the form in the bottom left corner of our website to receive timely updates straight to your inbox. 

To stay informed across our official social media channels, bookmark or follow CEX.IO via the links below to stay informed along your crypto journey:

Plus, our blog is a great resource for weekly crypto insights and detailed price analysis of top market performers.

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