When you hear the word "crypto," it's normal to think of prices that go up and down quickly. That variation is called volatility.
At TOHKN, many operations may use stablecoins during the investment process. This is done to work with a more stable value while the operation is processed.
Here we explain what this means for you.
What is a stablecoin?
A stablecoin is a digital asset designed to maintain a stable value.
It is generally pegged to a traditional currency, such as the US dollar (USD). For example:
1 stablecoin ≈ 1 USD
They are used on blockchain networks to transfer value digitally without the typical volatility of cryptocurrencies like Bitcoin. Their main goal is to offer stability within a digital environment.
How is it different from other cryptocurrencies?
The key difference is price stability.
Stablecoins
Seek to maintain a stable value
Normally are pegged to USD or another fiat currency
Are used as a digital transfer medium
Other cryptocurrencies (like BTC or ETH)
Their price can vary significantly in minutes or hours
Are subject to supply, demand, and the open market
Can experience high volatility
Why might TOHKN convert your payment to stablecoins?
In some issuances, TOHKN may perform a process known as on-ramp, which consists of converting your payment (for example, a bank transfer or card) into a stablecoin.
This may be done because it:
Facilitates processing within digital infrastructure
Allows operating on blockchain networks more efficiently
Helps maintain a stable value during the investment flow
Allows for greater traceability and settlement speed
This process can be a technical part of the internal functioning of the issuance.
So, does my money "become volatile crypto"?
Not necessarily.
If the flow uses stablecoins, the goal is for the value to remain stable (for example, equivalent to USD) during the process.
However, it is important to understand that:
A stablecoin is not the same as a bank deposit
It is not covered by traditional bank insurance
There may be operational risk or risk associated with the issuer
There may be technological or infrastructure risks
Although it does not have BTC-type volatility, it is still a digital asset.
What will I see in the app?
Before confirming any operation, the platform will clearly show:
The required asset (USD, stablecoin, or another digital asset)
The available payment methods
The specific conditions of the issuance
Relevant details before confirming the investment
You will always be able to review this information before continuing.
The most important things to remember
"Crypto" does not always mean extreme volatility
Stablecoins are used precisely to operate with a more stable value (normally pegged to USD)
The use of stablecoins can be part of the technical process of the issuance
The investment itself has risks inherent to the product, independent of the payment method
As with any investment, it is important to carefully review the details of each opportunity before confirming.