How to Trade Ethereum for Stablecoins: USDC and USDT

The recent moves on Ethereum’s chart, may be causing your heart to skip, especially considering the fact that its price move is not in sync with that of Bitcoin, and many traders including myself are looking out for ways to protect ourselves from these price fluctuations.

Whether you are trying to escape the market’s volatility or buy a new token, learning how to trade Ethereum for stablecoins is necessary. But the question now is, how do you get started? 

This article uncovers the benefits of owning stablecoins and answers the question of how to trade ETH for stablecoins like USDC and USDT.

Before going deep into the day’s discussion, let’s understand what stablecoins are.

What are Stablecoins: USDC and USDT? 

Stablecoins are divided into several categories based on their backing. For instance, fiat-based stablecoins are backed by a fiat reserve in banks. Algorithms, cryptocurrencies, and commodities also support other stablecoin categories. 

USDC and USDT (Tether) are fiat-based stablecoins with values pegged to the US dollar. Since they are backed by fiat currency, they reflect stability, as fiat currencies are less volatile. 

However, it is noteworthy to know that stablecoins are not free from volatility. Like fiat currency, they are also subject to trends in the market.  

How to Trade Ethereum for Stablecoins Using Breet

There are several ways to convert your ETH to stablecoins. However, your best pick is through the leading over-the-counter (OTC) crypto platform in Nigeria and Ghana, Breet. 

Trading with Breet’s OTC solution is hassle-free and incredibly rewarding. The entire process only takes a few minutes, and you get your USDT or USDC quickly. 

To begin converting ETH to stablecoins, the first step is to open a Breet account. You can download the mobile app from the Google Play Store or the App Store. For easy accessibility, the web version is also an option. Once you have completed the KYC and now have an account, here is the step-by-step process you need to follow: 

1. Verify your exchange pairs and details.
2. An estimated transaction time will pop up.
3. Transfer your ETH to a one-time deposit address and wait a few minutes.
4. You’ll automatically receive your USDT/USDC in the address you provided. 

On the Breet App, you have access to over 170 trading pairs. So, you can trade ETH for an array of other cryptocurrencies. Remember to verify the exchange pairs and perform the exchange within the provided window.

Why Trade Ethereum for Stablecoins 

The use cases of stablecoins mirror that of most cryptocurrencies. However, their stable value makes them more versatile. Investors have easier ways of sharing funds and lending/borrowing with stablecoins. Here are some reasons to trade ETH for stablecoins:

1. To Secure Profit: The crypto market is profitable, but also volatile, and a lot of traders make profit, and still lose it again to the market. By converting Ethereum to USDC or USDT, you get to secure profit for reinvestment in other projects or for personal needs.

2. Better Flexibility and Control: You may need to explore new projects, and ETH isn’t the most flexible option. The coin has restricted trading pairs, which might limit your ability to explore new projects. On the other hand, selecting coins such as USDT allows you to make trades seamlessly, as trading pairs do not limit it.

Frequently Asked Questions About Trading Ethereum for Stablecoins

Which is better: USDC or USDT? 

USDT and USDC, are both stablecoins pegged to the US dollar on a 1:1 ratio. However, users tend to trust USDC more for its regular audits, and regulatory compliance unlike USDT that has faced public scrutiny over their reserve disclosures. 

Is ETH a stablecoin?

No. Stablecoins are pegged to real-world currencies and backed by assets, which confers stability. Ethereum is not backed by real assets; hence, it is not a stablecoin.  

What are the types of stablecoins?

There are four major types of stablecoins based on their collateral structure. They are fiat-backed, crypto-backed, commodity-backed, and algorithmic. Common examples of stablecoins are USDC, USDT, DAI, BUSD, and TrueUSD. 

How do you trade ETH for stablecoins for free?

The best way to swap your Ethereum is with Breet App. Breet’s user-friendly interface guides you through each step, making sign-up and Ethereum-to-stablecoin swaps seamless. The process is straightforward, with a few clicks and no trading fees. With Breet App, you get a spectacular and automatic experience.

Where can I trade stablecoins for other cryptocurrencies?

Breet App has over 170 trading pairs, so you can easily swap your stablecoins for any crypto asset, whether USDC or USDT. All you need to do is visit Breet to get started. Once you have an account, you only need to search for your desired asset and swap it quickly.