Stability in Digital Currencies- Steemit Crypto Academy- S4W5- Homework Post for @awesononso

1.Explain why Stability is important in Digital currencies.

| CRYPTOCURRENCIES AND VOLATILITY |

In today's era online trading is very prevalent so that everyone is engaged in online crypto coins and bitcoins. Many people have also benefited from crypto currency, but we should invest in it thoughtfully.
We should not consider this to be hundred percent believe.
In today's era, crypto currency or bitcoin is running in very large quantities and only people determine their value. When someone buys them. In more quantity, their value increases or decreases accordingly, so I should not completely depend on it.
Last month, Last month, America's Finder surveyed experts. Its acceptance has increased over the past few months and companies like JPMorgan, This tells us that for a few years, global finance will surpass bitcoin. Its acceptance has increased over the past few months and companies like Tesla, Apple, Amazon and Microstrategy have started accepting it.Some companies have even started accepting it.

CRYPTOCURRENCY ITS STORE OF VALUE.
It is special for any currency to have at least its value to be determined, or it can be determined or but cryptocurrency is an online currency so that it is not determined.
Its value sometimes decreases. Sometimes it grows so that it is dangerous even today.

2.Do you think CBDCs would be good in the future? Weigh the pros and cons in your own understanding and state your position.

| CENTRAL BANK DIGITAL CURRENCIES |

Now I am telling you about the Central Bank Digital Currency so that we all know that now together the central bank is working together by forming a group which is Bank of Japan, European bank, Bank of Canada,and swiss bank.
All these central banks together are tracing the central bank digital. We present the concept of central bank digital currency, related to bitcoin and blockchain which is also inspired by cryptocurrencies.
Central bank digital currency will be done by a state. Although we know looking at digital currencies of cent bank at 70 - 80% whereas we know that central bank digital currency is not well known by people because digital is a new form of banks.

The time has come for central bank digital currencies.
The central bank digital currency has the potential to provide low dependency and low transactions and also significant benefits.

        | STABLE COINS  |

Now I am going to tell you about a stable coin. The price of a stable coin is pegged to another asset such as the dollar or gold. Thus a stable coin is more usable than a non-located coin.

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The physical asset is unlikely to fall below the middle due to arbitrage. Although most of them are pegged to material possessions of any kind.

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BACKED STABLE COIN
The advantage of asset-backed cryptocurrency is that it has less financial risk, keeping it safe from hunting if it is dedicated in a decentralized manner.

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They cannot be looted. There is also no possibility of falling below the value of the physical asset.

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These coins remain stable from external fluctuations. The crypto year for the past 1 year has seen the re-placement of stable coins as a popular phenomenon that mostly resembles fiat currencies.

3. Explain in your own words how Rebase Tokens work. Give an illustration.

      | REBASE TOKENS |

Now I am going to tell you about Rebase Coin which is a very important token.
A rebase token is created as follows. Whose price ever increases and decreases.

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Here's how it works
This happens regularly such as a token that has a value of $1 and if its value increases by this price the token will be worth less. This process continues forever.
The amount of tokens in each wallet will increase or decrease according to people, yet the value of each wallet will not change for people who hold Rebase tokens.
They always know whether the value of each token increases or decreases.

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To illustrate, if Tom has 5 AMPL whose value doubles to 10$ then its duration will increase by that and if 5 AMPL decreases to 2.5. Still its value will remain 5$. So the value of AMPL will be 10$.
TOP REBASE TOKENS BY MARKET CAPITALIZATION

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Coin Price
OHM $913.41
TIME $3,927.76
AMPL $1.02
MONSTA $0.00309932
DIGG $47,659.13

| STABILITY IN PORTFOLIO |

The portfolio is being constructed from a traditional approach.
In this article people propose an alternative approach and state that some estimates will be more or less stable.

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The authors propose that not only should the estimates be stacked against each other to minimize errors, but that portfolios should measure their stability and build a portfolio that can handle these responsibilities.

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The authors also want to note the risk, because portfolio managers typically extrapolate historical covariances but estimate expected returns based on subjective views rather than historical averages.
Apart from this, there are also some other important rules which we should pay attention to such as we should pay special attention to the risks.

The authors are showing what the portfolio clearly is and there are some other important rules as well. On which we should pay attention. At the same time, they also rely on Bitcoin.

5.Trade some tokens for at least $15 worth of USDT on Binance and explain your steps. (Give necessary Screenshots of the transaction).

For this, Go to Binance and then Select any Crypto currency pair and then there will be two options , buy and sell. Trade as you want to.

I have decided to trade how to sell token. I have decided to sell SXP token through Binance Exchange.

For this, Search SXP and then Click on SXP pair and Click on Sell options.

After that, there will be various parameters like price, amount, total usdt. Put the price of Sxp at which you want to sell and Fill the amount and then Click on Sell .

After clicking on sell, When the order would be successfully placed, then You can check the order details like this.

6. Transfer the USDT to another wallet with the Tron Network. From the transaction, what are the pros of the stablecoin over fiat money transactions? (Give Screenshot of the transaction).

For usdt Transfer, Click on Withdraw Usdt on wallet section on Binance Exchange.

And then, Enter the recipient address in the first box and select the tron network in the second box and enter the amount in the third box and then, We can transfer usdt by clicking on Withdrawal.

There is 1usdt withdrawal fees for this transaction.

The benefits of Stable Coin Transaction over Fiat Money Transaction are-

(a) It is very fast process. We can make easily this transaction through our mobile phone and It does not take much time i.e. It is a fast process.

(b) Fiat Money Transaction cannot be done anytime or from anywhere but Stable Coin Transaction can be done from any part of the world within no time.

| CONCLUSION |

All these topics tell us that we should invest a little thoughtfully in everything or take care of all their things.
That's what we should take into account in all such as CBDC, stable coins, cryptocurrency stability of portfolio.