In an unpredictable world, one of the most important qualities that we humans crave is stability. Whether it’s with our relationships, careers, and especially our finances, we want to feel secure with little to no risks.

And when it comes to crypto, the one thing crypto-enthusiasts and newbies alike know is how ever-changing the market can be. So if you are interested in investing in crypto and you have a low-risk tolerance, the solution you seek just might be in ‘Stablecoins’.

How do stablecoins work?

Designed specifically with low price volatility, a stablecoin is a token whose real-time value is attached to a real-world asset such as fiat currency (e.g., the US dollar) or an already-established valuable commodity (e.g., gold). Examples of stablecoins include USD Coin (USDC), Naira Token (NGNT), Binance USD (BUSD), Tether Gold (XAUT) etc.

If you have ever tried to purchase foreign currency for whatever reason, you would understand how complex the process can be. Stablecoins provide the best of both worlds by being an alternative, instant source of payment for goods and services and by being a volatility-free source for investment.

There is a reason stablecoins are also popular with investors and considered to be safer long-term sources of investment within the crypto space. Stablecoins are more reliable as they are not subject to the volatility of rapid fluctuations that come with regular crypto coins, and even the stock market as a whole.

For example, 1USDC = $1 and 1NGNT = 1 Naira. Meanwhile, 1BTC has ranged from $37,928 at the beginning of 2022 to its lowest of $19,000 so far.

For those with weaker fiat currencies, stablecoins provide a different way of storing monetary value and safeguarding your finances; and because other forms of investment are more complicated than they need to be, stablecoins are easier to understand even with a similar value proposition.

In the past few weeks, Nigerians have seen the Naira suffer its hardest hit to date and have had more restrictions on FX thrown at them than ever before. With exchange platforms such as Nigerian startup, Busha, adopting stablecoins gets easier. With platforms like this you can get started with purchasing, receiving, storing and earning stablecoins, such as USDC and USDT without having to worry about the safety of your privacy and data.

Busha launched in 2019 with a dream to onboard Africans into the crypto economy that had swept through the rest of the world. Noticing the gap, the co-founders Michael Adeyeri and Moyo Sodipo set out to connect Africans to the global economy, and local individuals and businesses can accept payments from anyone anywhere in the world without restrictions