Welcome aboard the “How to buy stablecoins” ship of the Boussole JDC , young sailors. On our crypto-ship, we go through these paragraphs to skim the seas of Prudence and Stability. Indeed, among the multitude of volatile and risky cryptocurrencies, there are some on which we can count, real sure values! And yes, there are cryptocurrencies whose value does not vary, or at least no more than that good old dollar. Here is the guide you need to read before buying stablecoins !

Contents of the guide “How to buy stablecoins”
  • Stablecoins: what are they?
  • Where to buy stablecoins?
  • How to buy stablecoins? Our step-by-step guide with Swissborg
  • Should you buy stablecoins? Forecast, risks and strategies
    • The risks of buying stablecoins
    • The benefits of buying stablecoins
  • Trading stablecoins: what taxation? How to declare?
  • Frequently asked questions when buying stablecoins
    • Can we buy stablecoins via ApplePay, GooglePay or Paypal?
    • Can you buy stablecoins anonymously?
    • Where to store your stablecoins?
  • How to secure your stablecoins?
  • What to do with my stablecoins?
  • Conclusion: the best way to buy or trade cheap stablecoins

LES STABLECOINS : C’EST QUOI ?

Definition of a Crypto Stablecoin

As the name suggests, a stablecoin is a stable cryptocurrency . In other words, its fluctuations during the day are small, almost negligible. To do this, it is indexed to a fiduciary currency such as the dollar and the euro or to a commodity such as gold.

WHERE TO BUY STABLECOINS?

These cryptocurrencies are generally used as a reserve to gradually expose themselves to risk by buying other cryptocurrencies , which are much more volatile, when market conditions are suitable. They are also used in the other direction to recover profits on successful investments, without having to go back to fiduciary currencies (euro or dollar for example).

Let’s not waste any more time in generalities, adventurous sailors that you are. La Boussole JDC welcomes you to the heart of the vast ocean of stablecoins  ! An ocean on which it is easy to navigate, you say? Nay, you’ll see! Here is our selection of the best sites and platforms to buy stablecoins.

PlatformMinimum depositCostsMethod of paymentPurchase stablecoins
Binance15€ per card1.8% per cardCard and SEPA TransferHead to the Sea of ​​Stability on Binance
Ascendex€30 per card and SEPA transfer1.99% per card0% per SEPA transferCard and SEPA TransferI spotted a USDT, it was heading to Ascendex
Swissborg€1 per SEPA transfer0% per SEPA transferSEPA transferThe USDC has been there, it will go back to Swissborg
Crypto.com0.5€ per card2.99% per card0% per SEPA transferCard and SEPA TransferThe stablecoin vault hides on Crypto.com
KuCoin40€ per card1€ per SEPA transfer3.3% per card0% per SEPA transferCard and SEPA transferLooking for lost stablecoins? KuCoin Management
Coinbase€1.99 per card1.49% per card€0.15 per SEPA transferCard and SEPA TransferBuy your peace of mind in stablecoins on Coinbase

HOW TO BUY STABLECOINS? OUR STEP-BY-STEP GUIDE WITH SWISSBORG

Treasure-hungry sailors, your favorite Compass is here to show how to get your hands on your precious stablecoins. For that, head to Swissborg  ! This mobile application is, in my opinion, very practical for accessing your first cryptocurrencies.

SwissBorg, an all-in-one application for your cryptocurrencies

A Swiss-based startup in the city of Lausanne, SwissBorg was founded in 2017 by Anthony Lesoismier and Cyrus Fazel . After raising 50 million Swiss francs via an ICO shortly after its creation, the team began developing an application dedicated to the exchange of cryptocurrencies.

This accessible and easy-to-use application integrates a plethora of interesting features aimed at cryptocurrency investors, which we will explore in this presentation of SwissBorg.

A complete tool for any cryptocurrency investor, SwissBorg’s primary role is to offer a gateway for buying cryptocurrencies , namely Bitcoin (BTC), Ether (ETH), BNB  and many others.

The cryptocurrencies supported by SwissBorg are connected to the Smart Engine, an aggregation system that scans several third-party platforms in order to obtain the best price for each transaction , whether buying or selling.

Often described as the ” Skyscanner of digital assets “, this tool goes through numerous trading pairs to find the most optimal route and complete the trade for the user.

Available on iOS and Android, the SwissBorg app supports 15 fiat currencies including Euro, Swiss Franc and Canadian Dollar for fund deposits.

Another major feature that we present in more detail next is Smart Yield. It is an option that connects user funds to a full range of Decentralized Finance (DeFi) protocols, selected by SwissBorg to reward users in a passive and transparent way .

SwissBorg has its own token, the CHSB . Real engine of the application, holding this token offers a multitude of advantages . In particular, users can lock CHSB tokens to obtain exclusive premium benefits which we will discuss later in this presentation.

Let’s now take a deep dive into how SwissBorg and its many tools work. How to buy cryptocurrencies with SwissBorg? How to generate passive income from the application? What are the roles of the CHSB token? We discover all this together.

Download SwissBorg and create an account

To start using SwissBorg , you must of course download and install the application from the Google Play Store  or the App Store .

See also  Are the UST and Terra problems the end of stablecoins ?

Note that by using the button above, you will receive a ticket worth 1 to 100 € in CHSB , the cryptocurrency of SwissBorg. This ticket will be offered as soon as the KYC process is completed and you have deposited the equivalent of €50 on the platform.

First step of your registration, fill in your phone number then confirm that it is indeed your device by entering the code received by SMS.

SwissBorg Registration

Then just click the ” Download Now ” button to download the app to your phone. Launch the application then re-enter your phone number and your email for validation.

Next step, verifying your identity KYC . SwissBorg asks you to fill in some information about your identity, before redirecting you to a short questionnaire required as part of the AML-FT measures.

As SwissBorg is a regulated company, the last step is to provide an identity document. You must take a photo of your ID (ID card, passport, or driver’s license).

Completing this process is relatively easy and the app walks you through it step by step. Note that this procedure is carried out through Onfido , a specialized tool that verifies your information in a few minutes.

Once this step is completed, the entire SwissBorg application will be accessible to you! Now let’s find out how to deposit funds there.

Deposit funds into your wallet

Before buying cryptocurrencies on SwissBorg , you must deposit funds there via a bank transfer. SwissBorg  does not charge fees for deposits , although your bank may charge you a fee when you deposit fiat assets into your account.

To do this, start by clicking on the “ Deposit ” button in the “ Portfolio ” tab :

SwissBorg

Select the currency associated with your personal bank account, here the euro. You can select another currency by clicking on “ Add Currency ”:

SwissBorg

Before going any further, note that you must deposit funds to SwissBorg from a bank account in your name . If you make a deposit from other accounts, SwissBorg will return your funds to you, but you will have to pay the withdrawal fee .

There are 2 possibilities for depositing funds on SwissBorg: either via SEPA transfer to a personal account number generated by the application, or via SWIFT transfer to the SwissBorg partner bank. For convenience, this tutorial focuses on using the SEPA Credit Transfer .

Select the “ Local ” tab and wait until your personal IBAN is created. Then, in the same way as a traditional fund transfer from your bank account, transfer the amount of your choice to the bank details generated by SwissBorg. If your bank requires additional information to proceed with the shipment, click ” Show More “:

SwissBorg

💡 If the ” Local ” tab is not available and only the ” SWIFT ” tab appears, the method is similar, except that you must absolutely fill in the payment reference , otherwise the funds sent cannot be credited to your SwissBorg Wallet. Thus, you must imperatively indicate your reference number in the ” Comments ” tab of your bank transfer, sometimes called ” Reason ” or ” Description “.

Once the transfer has been made, the arrival of your funds on SwissBorg can take from a few hours to several days depending on the internal banking processes. As soon as your euros are available on SwissBorg, you can buy cryptocurrencies . Now let’s see how to do it.

Buy and sell cryptocurrencies on SwissBorg

As mentioned in the introduction to this tutorial, SwissBorg integrates a system that simplifies and optimizes crypto-asset trading by aggregating the order books of several platforms: Binance, Kraken, HitBTC and LMAX. Called the Smart Engine, this tool provides access to more liquidity than a single platform and ensures that the transaction is executed at the best price.

In this example, euros will be used to buy Bitcoin through SwissBorg, but the process is the same for any other exchange. Go to the “ Portfolio ” tab and click on the “ Exchange ” button. Then select the currency that will be exchanged (here the euro), then the desired cryptocurrency (here the BTC):

SwissBorg

Fill in the desired amount before obtaining a summary of your purchase, with the amount of BTC purchased as well as the SwissBorg fees:

SwissBorg

Here, by buying €100 worth of BTC, I would receive 0.00368315 BTC, which is the equivalent of €98.86 . Indeed, SwissBorg applies a default fee of 1% on exchanges . Fees that can be reduced if you are the holder of one of the premiums, which will be discussed in the next part.

Before clicking on the confirmation button, make sure that all information is correct, because once you click, there is no way to cancel the trade.

After the exchange, your wallet will be immediately updated and you will be able to access other features of SwissBorg if you have just acquired CHSB or other cryptocurrencies.

SHOULD YOU BUY STABLECOINS? FORECAST, RISKS AND STRATEGIES

Before rushing headlong into your first purchases of stablecoins, it is essential to take stock of the implications of such a purchase. So listen to your wise JDC Compass tell you about these very special cryptocurrencies.

See also  After the UST crash, are stablecoins under threat?

Stablecoins such as USDT , USDC or DAI are cryptocurrencies whose value is pegged to the dollar . If we schematize by putting aside the micro-variations in price, we can reasonably establish: 1 USDT = 1USDC = 1 DAI = 1 dollar. Therefore, by buying these stablecoins, you are buying neither more nor less than dollars in its crypto form.

These stablecoins are created by a centralized body. We can take the example of the Coinbase company , which recently went public, which “  puts into escrow  ” a certain amount of dollars in order to be able to generate their monetary equivalent in the form of the cryptocurrency USDC. These USDC can be purchased as we described in the previous paragraph with fiat currencies like EUR or USD. These stablecoins are then the gateway for the sailor-investors that we are towards the purchase of tons of cryptocurrencies on the exchange platform of our choice.

THE RISKS OF BUYING STABLECOINS

buy usdt risk

In terms of risks, we can already put volatility aside. On this type of cryptocurrency, there is none. Except disaster, these stablecoins undergo very weak variation of their price because they are indexed on the dollar. But the question with two compasses is: what would these famous catastrophes be? I will tell you and not later than immediately.

One of the main risks on stablecoins is panic attacks . This can take several forms. Imagine that a very ominous announcement for one of the issuing bodies of a stablecoin falls one morning. For example, suppose it is learned that one of these organizations does not have as many dollars in its vaults as the number of stablecoins it would have issued. This would mean that not everyone would be able to recover their money converted into cryptos. Or, that a very severe regulation impacts these stablecoins from one day to the next.

To put it simply, suddenly an event occurs that is significant enough to generate a loss of confidence in the organization associated with the stablecoin in question. There will most likely be a panic movement of people and entities who will want to withdraw their funds from these cryptocurrencies immediately and in one block to convert them back into dollars. If the issuer of the stablecoin is unable to respond to this sudden increase in redemption requests, it could generate, temporarily at least, a decline in the value of these stablecoins against the dollar to which they are pegged.

At the moment, these stablecoins are not regulated as strictly as banking institutions are. Because of this, there is greater risk in owning USDT or USDC than owning dollars directly, despite the fact that their value is identical.

THE BENEFITS OF BUYING STABLECOINS

Despite these risks, the strategic advantage of the existence of these stablecoins is immense for us investors of the seas. Indeed, they allow us purely and simply to reduce , or even eliminate , our exposure to the crypto market at any time by converting our bitcoins into USDC for example. And because these stablecoins are considered cryptocurrencies by current legislation, this transaction is not taxable . We do not have to declare our potential earnings generated by this transaction, unlike an exchange against euros or dollars. This advantageous status could possibly be undermined by future regulations.

Another significant advantage of these stablecoins is the possibility of transferring large sums of money from one person (or entity) to another, from one end of the world to the other , without going through banking organizations. As a result, the transfer costs are minimal and the transfer is very fast, the story of a few seconds or minutes.

Now, since a savvy sailor is worth two, I can count twice as much on you to invest reasonably in my crypto-ship, sailors.

TRADING STABLECOINS: WHAT TAXATION? HOW TO DECLARE?

We have seen previously that stablecoins are a very clever way to take profits on capital gains made on the cryptocurrency market without having to declare them. Indeed, despite the fact that they are indexed to the value of the dollar, stablecoins such as USDT, USDC or DAI are considered by regulatory bodies as cryptocurrencies. As such, they are not taxable under the current legal framework.

On the other hand, if you choose to convert them into euros or cold hard dollars, you will be required to declare your profits each year. In France, the tax is 30% on realized capital gains .

Let’s imagine that you have received profits via the yield wallet of Swissborg. The amount of these gains will be reduced by 30% which will go to taxes.

FREQUENTLY ASKED QUESTIONS WHEN BUYING STABLECOINS

CAN WE BUY STABLECOINS VIA APPLEPAY, GOOGLEPAY OR PAYPAL?

Indeed, the ApplePay and GooglePay services are available on certain platforms and in particular on Ascendex and Coinbase. Applications associated with these trading platforms are available for download from the Apple Store. It is therefore easy for you to buy your stablecoins via your mobile.

On Coinbase , you have the possibility to buy your cryptocurrencies, and therefore stablecoins, via the Paypal service and its portfolio dedicated to digital assets. On Binance, you can also do this through their payment partner like Paxful.

CAN YOU BUY STABLECOINS ANONYMOUSLY ?

The brave sailor that you are does not like the light of the spotlights and would like to be discreet? La Boussole JDC understands you because it also likes to navigate in the mist. Nevertheless, the regulation of the world of cryptocurrencies being done, it is more and more difficult to buy its cryptocurrencies anonymously.

See also  Are the UST and Terra problems the end of stablecoins ?

Indeed, the protection of anonymity is not the trend taken by the regulations which are becoming more and more severe in the field of cryptocurrencies. Centralized trading platforms must meet standards imposed by regulatory bodies . These now require identity verification via Face ID and the provision of personal details during registration . In doing so, they establish the link between a created account and a natural person.

It is therefore now very difficult to access the world of cryptocurrencies without having to reveal your identity. The regulation of the domain is however a good thing and is necessary to supervise the transactions which are carried out there in order to prepare for a broad democratization . In addition, some malicious pirates have been found years after their misdeeds thanks to this system.

A few platforms like KuCoin , however, still allow purchases and sales within a certain limit without KYC ( Know Your Customer , the verification process). It is therefore still possible to buy stablecoins anonymously.

WHERE TO STORE YOUR STABLECOINS ?

Very good question, young sailor! Finding a good hiding place is essential when, through hard work, you have accumulated a large nest egg. For your cryptos, there are several means at your disposal:

  1. Leave your stablecoins on the exchange platform . Indeed, if you want to take advantage of market lows to buy cryptos at low prices and follow trends by taking profits, it is always useful to keep a certain amount directly on centralized exchange platforms. Binance or Coinbase are ultra-secure. Leaving your cryptocurrencies on these crypto-exchanges presents little danger. However, you must accept a significant counterpart: the cryptocurrencies present on these platforms do not really belong to you. They remain the property of Coinbase or Binance. If these are hacked, you can say goodbye to your precious treasure. In the case of a hack, it should be noted however that this type of platform has large hedge funds in order to reimburse their customers. Their reputation is still at stake!
  2. The other solution is to withdraw your stablecoins in a digital wallet or wallet. This can be a Metamask-type digital wallet or a Ledger-type hardware wallet. These assure you of ownership of your cryptocurrencies. Once your stablecoins are taken off the exchanges and held on a key (or wallet), only you can decide what you will do with them then. You can typically put them to work within decentralized finance in order to earn interest on it.
HOW TO SECURE YOUR STABLECOINS ?

If your stablecoins are on an exchange, it is ultimately the security of this one that guarantees the safety of your funds. However, you yourself are not safe from having your passwords stolen. The risk for you is that someone else manages to access your account. The best way to protect yourself against this is to properly secure your account. A good way to do this is to always enable two-factor authentication . This allows you to add an additional confirmation during your authentication.

After entering your password, you must indeed provide a code sent to a dedicated application such as Google Authenticator for example, accessible via your mobile. So, if a hacker discovers your password, he won’t be able to connect unless he also steals your laptop and manages to gain access to it. Your safe is thus doubly padlocked.

If your stablecoins are on a Ledger -type hardware wallet , then they are already well protected by the simple fact of being inaccessible from the internet. The thief will then need your Seed Phrase to access it. The Seed Phrase is the secret phrase that only you need to know to access the funds contained on your key. For large sums, it is even possible to divide this sentence into several pieces held by each of your relatives. If the hacker has to manage to find Grandma in her country house to access your precious stablecoins, there is no doubt that he will be discouraged very quickly, word of Compass.

WHAT TO DO WITH MY STABLECOINS ?

An ocean of possibilities is available to you once you own stablecoins. You have access, once your euros have been transformed into USDT or USDC, to the immense ocean of cryptocurrencies.

You can choose to steer clear of volatile cryptos and simply put your cryptocurrencies to work within decentralized finance ( DeFi ) using farming strategies. This allows you to earn passive returns on your capital.

Or, as sailor-investors, you can gradually exchange them for cryptocurrencies that would have caught your eye in order to hope to make gains.

CONCLUSION: THE BEST WAY TO BUY OR TRADE CHEAP STABLECOINS

Without a doubt the easiest way to buy stablecoins is through Binance . Now, boys, we’re done with those mysterious stablecoins, not so mysterious anymore, are we? You are now an outstanding sailor, able to navigate the seas of USDT , USDC or DAI without fear . These stablecoins, which have become essential to the world of cryptocurrencies, can be found everywhere, on the vast majority of the centralized exchanges listed in the first part of this article.

The ideal way to take your first steps in the world of cryptocurrencies is therefore to go to one of these platforms and then exchange your freshly transferred euros from your bank account for these famous stablecoins. You are then free to do what you want with them, exchange them for other cryptos or send them to decentralized finance.

Sailors, the ocean of the purchase of cryptocurrencies is vast and the discoveries incessant. Despite everything, I trust that you will be able to stay the course and wisely dose the amount of stablecoins in your portfolio. These stablecoins are very often your lifeline when the markets crash to buy back the cryptocurrencies abandoned by panicked sailors at low cost. So be sure to always keep a little in your safe, say old Compass of the seas.

Have a good trip,

5/5 - (1 vote)