What are stablecoins or digital dollars?
Learn all about USD digital wallets and how to invest in digital currency.
What is a stablecoin or digital dollar?
A stablecoin or digital dollar is a type of blockchain currency. They are used in blockchain investing, and are tied to the value of another currency or commodity — the most popular stablecoins have their value tied to stable currencies like the U.S. dollar, or relatively stable commodities like gold.
Investment apps like Cenoa facilitate the buying of digital dollars as an alternative to volatile local currencies. They’re gaining popularity in these difficult economic times, when local currencies around the world are facing devaluation and volatility.
How are stablecoins different from cryptocurrency?
Stablecoins differ from general cryptocurrencies because they’re a much more stable way to invest. Though stablecoins are bought, sold, and built on the blockchain and are technically a type of cryptocurrency, they make for a completely different investment strategy.
Traditional cryptocurrencies, like Bitcoin, can fluctuate based on demand. Buying most crypto is considered risky and many people around the world have lost their savings by using this strategy.
Conversely, stablecoins (or digital dollars) are built on the same technology as other cryptocurrencies, but the similarities stop there. Stablecoins like USDC$ are tied to the value of the U.S. dollar — their value is not based on demand. This means that if you have a Cenoa Super Wallet with 100 USDC$ in it, you’ll always be able to withdraw your initial investment.
Stablecoins are favored by those who don’t want to keep their savings in traditional banks and prefer the financial freedom of digital dollars.
When trying to decide how to invest and where, it can be helpful to learn about digital dollars and how they can help you slowly and sustainably grow your wealth.
Benefits of investing in digital dollars with Cenoa
Since digital dollars (or stablescoins) have a value on par with USD, which is historically strong and consistent, digital dollars are often much more stable than many global currencies, especially in emerging markets. Historically, investors in emerging markets would just buy USD, but it was always expensive and often challenging to do through traditional banks. Buying digital dollars through apps like Cenoa is much easier and more affordable.
2. Sustainable, steady growth
Digital dollars bought through Cenoa are a sustainable short- and long-term investment with minimal risk. As the U.S. dollar has largely grown in value steadily and sustainably, stablecoins do the same. It’s one of the best short term investment plans, as Cenoa provides very high yield and guarantees yield — meaning that in the worst case, you’d still get back what you put in.
3. Higher yield and no fees
Since Cenoa has lower operating costs than a traditional bank, it can provide best-in-class yield, up to 5%. Unlike banks or fintech apps that charge blockchain wallet fees, Cenoa has no transaction fees, no deposit fees, no withdrawal fees, and no fees to open an account.
How to securely buy digital dollars
- See if Cenoa is available in your country's app store.
Download the app and make an account.
Add as much or as little of your funds to your Cenoa Super Wallet through our trusted financial partners as digital dollars. As you learn about this new strategy, it can be helpful to start small.
Contribute more whenever you can.
Watch your funds grow, and withdraw at any time — there’s no lock-in and no need to worry about holding periods.