Similar to the FedEx and UPS of the crypto industry, stablecoins have price stability characteristics that make they suitable for short- and medium-term use as temporary store of value. They are often pegged to a fiat currency.
According to Cryptoslate, the market cap for stablecoins currently stands at $47 billion — with USDT at $33.1 billion, USDC at $7.2 billion, and DAI at $2 billion making up nearly 90% of the market. Currently, Tether is the market leader in stablecoins with 70% dominance.
The fee for the deposit is ~0.5% charged by CoinPayments, and no additional fees are charged by Redeeem for stablecoin deposits.
1. Choose your stablecoin
Choose between USD Coin (USDC), Tether (USDT), True USD (TUSD) and DAI (DAI) to fund your dollars wallet. At this time, we do not accept altcoins like Ethereum (ETH), Litecoin (LTC) or Bitcoin Cash (BCH), but we hope to support Lightening Network (BTC.LN) later this year.
2. Send your stablecoin
Make sure you send enough funds to cover fees from your existing wallet, and please allow up to 50 network confirmations before the funds are received in your Redeeem wallet and can be used for trading. You no longer have to open up CoinPayment invoices to send funds.
3. Receive USD credits
Within a few minutes (or hours), you will receive an email with the exact amount deposited into your Dollars (USD) wallet, which you can swap to bitcoin (BTC) for only 100 satoshi ($0.05) per trade or transfer to another wallet for about $5-10 in mining fees. All stablecoins you can redeem 1-for-1 for US dollars, however most coins are held on exchanges like Coinbase, Binance and Kraken and traded for fiat currencies.
Redeeem accepted altcoins using CoinPayments in 2019 and 2020 but the costs (mainly for buying ether) became too expensive for us to manage so we shut down our CoinPayments option entirely in December. However, in a recent poll, our users requested better stablecoin support so we decided to prioritize stablecoin deposits in our latest product sprint. At this time, we do not allow any trading or payouts in stablecoins or fiat currencies as we are built on Bitcoin. We have discussed allowing users to trade with the USD wallet in coming weeks.
CoinPayments has processed more than $10 billion in crypto payments since 2013 and is active worldwide in 180+ countries. To learn some of the risks of buying and owning stablecoins, click here. For issues with stuck or missing payments, please send an email to our support or create a ticket on CoinPayments.