As many cryptocurrencies shrivel up and die in this frigid crypto winter, many investors that are smart enough to buy the dip are looking to cryptocurrencies that can withstand this harsh, inhospitable environment of uncertainty, fear and panic. Here are two cryptocurrencies that will be able to make it through this long winter: Dai (DAI), and Big Eyes Coin (BIG).
What Are Stablecoins?
Stablecoins are a great way to invest in cryptocurrency whilst avoiding the wild volatility and ups and downs in the market that a bull and a bear can bring to the arena. For many investors that like the idea of cryptocurrency and decentralisation but are turned off by the price swings, stablecoins are a great option.
Additionally, because stablecoins’ prices are not volatile like conventional cryptocurrencies, they are much better suited as a payment method. They do experience monetary inflation, meaning the value of the stablecoin will go down over time, as the value of fiat goes down due to inflation. However, like fiat, stablecoins are fantastic to use as a currency to exchange for goods or services. They provide a much-needed opportunity to people living in countries lacking banking services, as people can save their money in stablecoins, and can trade internationally with ease. On the flip side, workers with families in developing countries can send money to them in a much more simple and more convenient way than the traditional bank transfer.
Never Say Dai!
Dai (DAI) is a decentralised stablecoin that is pegged to the US dollar. It is built on the Ethereum blockchain and is designed to maintain a stable value relative to a specific currency or asset. Dai is created by the MakerDAO platform, which uses a combination of smart contracts and cryptocurrency collateral to stabilise the value of the token.
One of the key features of Dai is that it is designed to be fully collateralised, meaning that for every Dai that is in circulation, there is a corresponding amount of collateral that is held in reserve. This helps to ensure that the value of Dai remains stable and that it can be trusted by users as a stable store of value.
Dai is used in a variety of applications, including as a stablecoin for trading and as a means of paying for goods and services. It is also used as a hedge against volatility in the cryptocurrency market, as it is designed to maintain a stable value regardless of fluctuations in the value of other cryptocurrencies. This is especially true in the bear market we are in right now.
What Is DeFi?
Decentralised finance (DeFi) refers to a financial system that is built on blockchain technology and is not controlled by any single entity. DeFi has the potential to offer a number of benefits over traditional financial systems:
Accessibility: DeFi can be accessed by anyone with an internet connection, regardless of their location or financial status. This means that DeFi has the potential to increase financial inclusion and allow more people to access financial services.
Transparency: DeFi transactions are recorded on the blockchain, which means that they are transparent and open to anyone to see. This can increase the trust and confidence of users in the financial system.
Censorship resistance: Because DeFi is decentralised and not controlled by any single entity, it is resistant to censorship. This means that DeFi transactions cannot be blocked or reversed by any third party, which can increase the security and reliability of the system.
Automation: DeFi can also be automated through the use of smart contracts, which are self-executing contracts with the terms of the agreement written into code. This can increase efficiency and reduce the need for intermediaries in financial transactions.
Lower costs: DeFi has the potential to reduce the costs of financial services, as it does not require the use of intermediaries such as banks. This can make financial services more affordable for users.
Big Eyes Coin: Going BIG
Now we are acquainted with some of the advantages of DeFi, here is one of the most promising new DeFi tokens on the block. Big Eyes Coin (BIG) is a meme token on the Ethereum blockchain, with the aim of shifting as much wealth as possible into the DeFi space. One of its main selling points is that 5% of all tokens will be donated to ocean sanctuaries, so by investing in Big Eyes Coin, you are directly helping save our oceans whilst buying yourself a ticket that could take you to the moon!
Big Eyes Coin and Dai are two solid cryptocurrencies that will get your portfolio through this rocky time. Especially as both can have DeFi applications, that makes them even more resistant and would be immune to black swan events like the FTX crash.
Big Eyes Coin (BIG)