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What you need to trade stablecoins?

There are a number of pre-requisites to trading stablecoins: A user needs —

Funds in Cryptocurrency: You need to have funds in cryptocurrency that you want to trade. These funds can be obtained through purchases on centralized exchanges, peer-to-peer transactions, or by converting other cryptocurrencies.

Cryptocurrency Wallet: You need a cryptocurrency wallet to store your digital assets securely. Alongside storage requirements a wallet that can interact with Web3 like Metamask is needed to trade stablecoins.

Gas Fees: When interacting with DeFi protocols or decentralized exchanges on blockchain networks like Ethereum, you’ll need to pay gas fees to process transactions on the blockchain.

Once a user has all of these prerequisites, they can acquire stablecoins from Centralized exchange or DEX (unless their first trade is fiat-to-stablecoins). They can load up their Web3-enabled wallets and use them to interact with stablecoin-specific exchanges like Stabull (paying gas along the way). 

While not completely necessary to trade stablecoins, Stabull recommends that users —

  • Familiarize themselves with the DeFi platforms and decentralized exchanges they plan to use.
  • While you don’t need to be a developer, having a basic understanding of how smart contracts function can help you navigate DeFi protocols and assess the associated risks. Stabull and every decentralized application is underpinned by them
  • Understand Security, is paramount when trading cryptocurrencies in DeFi. Phishing, fake platforms, MEV bots are among the potential ways users can be targeted. Using 2FAs and doing research are two of the ways users can protect themselves from these threats. 
  • Before trading in DeFi or decentralized exchanges, assess your risk tolerance and consider implementing risk management strategies to fully protect investments

Still need help? Check out our knowledgebase, ask one of our helpful community members on the Stabull Discord, or submit a ticket via our helpdesk to our team for help.

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