Cryptocurrencies: 4 options to invest in stablecoins and achieve a return in dollars of up to 15%

Stablecoins investments

The cryptocurrencies stable became a very good option to protect savings or even achieve profitability without much risk against more volatile currencies like Bitcoin or ethereum and even outside the traditional financial market. Exchanges, digital wallets or applications offer increasingly attractive rates.

Lemon Cash, the virtual wallet that combines pesos with cryptocurrencies, has just incorporated the DAI cryptocurrency and offers a fixed effective rate of 13% per year, so that each user generates automatic earnings on a weekly basis from the purchase of $100 in the app.

This virtual wallet also offers a 7% annual return on stablecoin USDT and as for the cryptocurrencies with the highest market capitalization, it provides 3.5% for those who own Bitcoin and 4% for the owners of Ethereum.

On the other hand, Emiliano Limia, spokesperson for Buenbit, told to a digital site about the options of this platform to invest in stablecoin: “With the push of a button, the user can invest their Dai in DeFi protocols to generate daily interest in this dollarized cryptocurrency. There is no minimum amount to invest”.

“At the same time, if the investment option is activated, the entire balance will be invested. Also, if you want to withdraw Dai, there is no type of restriction: you can withdraw a part or the total capital with a simple click, at any time, 24/7. Neither is any type of withdrawal commission charged”, the information completed.

At Buenbit, the performance generated by DAIs is credited on a daily basis and they are also automatically capitalized, meaning that the returns obtained in turn generate new returns. The rate of return displayed on the app screen is variable (since it depends on the rate paid by the protocols in which the user, through Buenbit, is investing their Dai).

“This implies that future returns are not guaranteed; They are estimates based on current daily performance. As of today, this yield is around 15% per year, although on average in recent months it has been around 10% per year”, Emiliano Limia confided to this medium.

“Ripio offers USDC (the stablecoin created by Coinbase and Circle) and DAI (the stablecoin created by MakerDAO), we are soon listing other stablecoins,” Juan José Méndez, Ripio’s Brand Director, assured to another site. To invest in cryptocurrencies there is the Ripio Earn function, which generates fixed monthly profits, in USDC the rate is 6%, for those who have Ethereum 4% and Bitcoin 2.5% per year.

In Belo, a mobile application that allows you to buy and sell cryptocurrencies, the annual return on stablecoins such as DAI and USDT is 8.25%. In the case that Ethereum is owned, the rate is 3.5% and for Bitcoin 5.25%. From the moment they are bought, they are already yielding since the system is automatic. In addition, you can start trading from $1.

What is a stablecoin?

A stablecoin is a cryptocurrency that was designed to minimize price volatility and achieves this through the backing of a “stable” asset or basket of assets. Some examples are: they have a fiduciary guarantee since they are backed by an underlying government currency, with a cryptographic guarantee since they are guaranteed by one or more cryptocurrencies and algorithmic ones that depend on smart contracts.

Tether (USDT) is the most popular stablecoin on the market and has the highest transaction volume and market capitalization. Each token was backed by one US dollar at the beginning of its creation, but since 2019 the backing changed to include loans to affiliated companies.

USD Coin (USDC) is backed by the US dollar. The USD Coin is an Ethereum token, so it can be stored in a wallet compatible with this digital currency. This stablecoin also has the support of the financial company Goldman Sachs.

Dai (DAI) also maintains its value as close to the US dollar as possible through an automated smart contract system on Ethereum. Dai is maintained and regulated by MakerDAO, a decentralized autonomous organization.