How to make money trading stablecoins

The massive collapse of the cryptocurrency market has forced most investors to abandon investments in digital currencies.

Nowadays, cryptocurrencies are used only by stock traders for speculative earnings and by those who want to transfer money without revealing their identity.

Moreover, stablecoins are mainly used for settlements, which, thanks to their stable exchange rate, remain equal in value to the US dollar.

At the same time, rumors began circulating among traders that this type of cryptocurrency could soon collapse following Bitcoin.

 Stablecoins have a rather weak backing, although, to be fair, it should be noted that, unlike regular cryptocurrencies, they do have some.

The first sign of this was the TerraUSD cryptocurrency, whose price fell almost 20-fold from $1 to $0.06:

Its fall debunked the myth of stablecoins' stability and significantly undermined faith in cryptocurrencies themselves.

TerraUSD's decline has led many traders to consider opening short positions on other stablecoins.

The strategy here is extremely simple: the sold cryptocurrency is unlikely to rise in price more than $1 per coin, while it is possible to make quite a bit of money on the collapse, given the unfortunate experience of TerraUSD.

All that remains is to find a broker that allows you to open uncovered short trades on one or more stablecoins.

As it turns out, this isn't quite so simple, as cryptocurrency brokers prefer to trade volatile cryptocurrencies and see no point in trading stablecoins.

However, such brokers do exist, and one of them is Alpari , whose specifications were used to discover stablecoins:

These are the most popular and highly capitalized cryptocurrencies: Tether (USDT) and USD Coin (USDC). They can be traded on the MetaTrader trading platform, including short positions.

Among the main trading conditions, it is worth noting: leverage of 1:10, the average leverage on Wednesday is equal to 1 point, a fee of 0.05% of the transaction amount per day is charged for carrying over positions to the next day.

Trading is carried out using CFD contracts 24/7, meaning that trades can be opened even on Saturdays and Sundays.

To avoid paying extra swap, it is recommended to set pending sell orders at $0.95 and wait for the price to fall.

You can open an account for trading stablecoins on the Alpari broker website - www.alpari.com