Stable cryptocurrencies, or stablecoins, form one of the largest parts of the crypto ecosystem. A good example of a stablecoin is DAI. The stability of its price makes it ideal for use as money. At Ccoins, we have taken care to compile a shortlist of the most important and popular uses – and some lesser-known uses – for this cryptocurrency so that our users have an idea of how versatile it can be.
Some of the uses to which DAI can be put are:
Freezing is a very common practice in which stablecoins such as DAI are used to protect the value of an investment in a highly volatile cryptocurrency such as Bitcoin or Ether. When there is a general fall in the prices of cryptocurrencies, freezing involves making a conversion to DAI, thereby protecting the value of the investment.
Swapping between fiat currencies is a practice that can be done using cryptocurrencies such as DAI. Many will wonder what it consists of. Suppose you are from country X and need money from country Y. To avoid using conventional exchange houses and paying the high commissions they charge, you can acquire DAI in country X, and when you travel to country Y, you can sell your DAI there, thereby easily acquiring Y’s fiat money.
DAI is a good option for making purchases online or in physical stores. It is widely accepted by commercial establishments because its value is tied to the dollar, which means they do not have to deal with price drops as they might with other cryptocurrencies.
It is increasingly common to see people using stable currencies such as DAI to send remittances to other parts of the world. This is because the design of DAI makes sending it super fast, and the commissions associated with doing so are very low in comparison to other currencies. In addition, it is very easy to sell DAI in any country because it has the same value as the dollar, making it ideal for sending remittances across long distances.
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Of course not. There are activities in which stable currencies such as DAI contribute a lot, such as sending remittances or freezing crypto assets. But we can also find cryptocurrencies that stand out in other aspects and in different activities. For this reason, we must know which currency to use in each project that we want to carry out.
Not really. Many of these practices only imply having a limited, or at least not expert-level, knowledge of the cryptocurrency ecosystem. They just require knowledge of how the cryptocurrency or token that is being used works. It is also true that there are uses for which you must have very advanced knowledge in order not to make a major mistake – cryptocurrency trading is one.
Of course not. Stablecoins can be used for different activities within the universe of online trading or crypto active trading. However, there are uses for which stablecoins such as DAI stand out more, opening up a range of possibilities or use cases in daily life.