It is well known that the cryptocurrency market is characterized by high levels of volatility. So, although this could be very useful in case of the rise in the price of some digital asset, similarly could harm us when the opposite occurs. We conclude then that investing in this medium carries some risk compared to other types of traditional investments.
The same changing nature of the crypto world has given rise to an infinity of advances in terms of decentralized applications, initial offers of currencies, web tools that gather useful functions for investors, among many others. In this sense, one of the alternatives emerged to escape the bad part of the volatility of this market is to buy stablecoins or stable currencies. These are assets that maintain an equivalence ratio of 1 to 1 with a fiduciary currency, and that is the reason for their name: they offer greater stability to their users.
However, although buying stablecoins considerably reduces the problems related to the fluctuation of prices, there is still one aspect to cover, which is that of security. And even if we do not have to worry too much about the risk that the value of our assets, when transferred to a portfolio of centralized exchange platforms, we can be victims of an attack.
Luckily, there is a solution to this problem, which is to store our dollars in a hardware wallet. Therefore, we present below a way to optimize the use of our stable currencies, such as TrueUSD, by storing our money in a physical wallet.
Why is it necessary to store USD in cold wallets?
The reason why we must undoubtedly take some time to store our USD in hardware wallets has already been exposed. Suppose you have made a very successful investment in cryptocurrencies, through trading, for example. If your assets increased in value, you do not want them to be devalued in case the market price decreases later.
Exchanging these currencies resulting from our investment for a stable currency includes a doubt of protecting our profits, while offering us great liquidity within the cryptographic market.
So, what stable currencies should be used?
It is not surprising that there are already several stable currencies that have the most popular fiat coins as pairs. In this case, our prime example is the Tether token, USDT, from the Tether Limited company, which claims to have real support in US dollars, which has been questioned due to the absence of audits by third parties.
Recently, an improved version of Tether, known as TrueUSD, appeared to fill the gaps left by the first. This raises a different way of backing the tokens, using third parties, which are usually banking institutions and fiduciary entities of repute and verified trust. They are in charge of guarding TUSD's support and twice a month they can be audited to prove that they actually have the amount in US dollars equivalent to the TUSD in existence.
How to store US dollars in a cold wallet?
A cold wallet is one that allows our cryptoactives to be stored outside the network to which they belong. They are usually USB devices that store the private keys of your user, and that is why they are very useful as a security measure, and are much more recommended than centralized exchange websites.
Faast, on the other hand, is a new application that has managed to offer several comforts to its users in comparison with other crypto-exchanges. This allows you to carry out exchanges in a secure way, associating with several wallet platforms and, especially, with hardware wallets, cold, such as Trezor or Ledger. In this way, BTC can be exchanged for ETH and several erc-20 tokens, such as TrueUSD.
The first step to store US dollars in a cold wallet is simply to access Faast's website, through the following link. The main page of Faast Portfolio beta will appear, in which we will have to select the wallet of our liking, either Trezor or Nano Ledger S. TUSD is an erc-20 token, which is why it is compatible with these portfolios. After that, click on the Swap option located at the top of the page.
A screen will appear asking us which and how many cryptocurrencies we want to add, together with the option to add them all. This is part of the configuration phase of the wallet. Here we only have to follow the instructions given to us in the process, and when the accounting device has verified the portfolio and the amount specified, click on confirm.
Once it has been passed, the user can select on the board, the amount of funds that he wishes to change to the TrueUSD currency, and click on the "Save changes" option.
This done, we will have saved American dollars in our cold wallet, where they will be protected from the abrupt changes characteristic of the cryptocurrency market. But beyond that, they will find themselves safe from the high risk of theft by hackers who continuously lurk in the houses of typical changes.
So with the practical resource of Faast, it is possible to have monetary stability, with availability to use our assets at any time. With Faast, the physical wallet of your choice and TrueUSD have the ideal combination to guarantee security and liquidity.