How To Trade Stablecoins: Learn How to buy Stablecoins in 2025

While stablecoins are designed to be “stable,” they are only as reliable as the asset to which they are pegged. Although the price of the US dollar is stable, for example, that might change, which would impact the price of any of the US dollar-pegged stablecoins, so it would be very similar to investing in other kinds of stable assets, like the ones you can find at CAPEX.

Know where are the stablecoin reserves stored

If the stablecoin reserves are stored with a financial institution or some other third party, outside the control of the issuer, there arises a counterparty risk vulnerability. This means that the issuer may not have the physical collateral to back the stablecoin. This is a problem Tether ran into years ago and it still has not provided a response.

Look for transparent stablecoin issuers

Many stablecoin issuers aren’t transparent about where they hold reserves or how much. This makes it difficult to know how risky the stablecoin is as an investment. By knowing where the assets are held, users are able to easily determine if the stablecoin is operating without a license. As has been seen already in cases in Brazil and Canada, financial regulators can seize assets of entities not holding proper licenses, even if those assets are linked to investors. By not revealing how much the stablecoin holds in assets, it’s impossible to know if the platform is solvent.

Cryptocurrencies were initially developed to replace intermediary companies that are trusted with a user’s money. Those intermediaries have inherent control over that money and can stop a transaction from occurring. Some stablecoins offer that capability, as well, which makes them more centralized than decentralized.

Conclusion – Trade crypto CFDs at CAPEX

Trading stablecoins is rarely going to be as profitable as trading other types of cryptocurrencies. However, it appeals to certain individuals, specifically those who want an alternative to bank and third-party savings options. There are ways to generate revenue from stablecoin trading, but, as with any investment opportunity, it depends on the goals of the individual. If you have general interest in cryptocurrencies, join CAPEX today and start trading the most popular ones.