How to Use Stablecoins to Make Money?

To start with let’s quickly cover what a stablecoin is. A stablecoin is called ”stable” because it should always be worth $1 USD all the time, which means that the price of a stablecoin is pegged to the USD. 1 stablecoin is worth $1 USD all the time.

In the early days of cryptocurrencies, every time you bought a coin, you would be at risk of volatility in the market, so after making some profit, all traders would have to transfer all their money back to their bank account. By inventing stablecoins, traders didn’t have to go through the time-consuming task of constantly moving money in and out.

This makes it easier for you to add money to a cryptocurrency exchange and leave your money there without worrying about volatility. Then trade, whenever an opportunity arises immediately.

List of Stablecoins

There are over 200 or more stablecoins right now in the market, but here are my best stablecoins:

  • TUSD
  • BUSD
  • GUSD
  • PAX
  • USDC
  • USDT ERC20
  • TGBP

How to trade stablecoins?

The best way is during a bull market in cryptocurrency, so it’s as simple as putting your money on an exchange and buying the stablecoin used on the exchange. Trade your stablecoins for the cryptocurrency of your choice, watch the cryptocurrency rise, then trade it back for the stablecoin, then you should notice that there are more stablecoins in your possession. Simple as that.

Settle International Payments With Stablecoins

Foreign exchange rates can be avoided by transferring stablecoins across borders, as they will remain at $1 USD across any international border. Then can be converted into any currency world wide without having to pay a conventional bank for the privilege of transferring the funds for you.

Secured Loans With Stablecoins

There are many companies out there these days who are willing to pay you for the privilege of borrowing your stablecoins. It works the same as when you put your money in the bank, often the bank will offer you interest on your money, just by simply leaving it in the bank. For a higher return, they offer term deposits, where you cannot withdraw your money for an agreed-upon time period.

Lending Stablecoins For Profit

You can become your own broker, by finding investors who are having liquidity problems and offering a loan to them at an agreed-upon interest rate. You’ll have to bear all the risk yourself when lending out your stablecoins, however, the payoff could be worth the risk.

Trading Gold-Backed Stablecoins

At the moment, governments around the world are expanding the money supply while simultaneously reducing the amount of good in the system, this has and will continue to increase inflation over time. Historically, this means that gold should be a good inflation hedge, but this doesn’t seem to be the case anymore, well, not exactly. However, there is a slight uptick overtime in the value of gold, although it’s not keeping up with the inflation rate.

Perth Mint Gold Token (PMGT) is one of those options. One way to increase your profits is to use one of these gold-backed stablecoins as your off-ramp in between trades, so you can win during the trade and while in between.


This is not supposed to be financial advice, just some simple education, whatever choices you make are your own. But if you would like some tips from myself, I do have a group where buy suggestions are made. If you would like to join, feel free to email me and I’ll get you into the group.

Here’s a list of other articles I recommend on Bitcoin and Cryptocurrency: