Cryptocurrency and Metaverse

How to Create A Secure Digital Dollar Account Alternative For Free

Traditionally, you will have to visit your bank to open a foreign currency account with them. Times have changed, and it is now possible than ever to get a digital dollar account alternatives for free. 

Without a doubt, we are living in the age of digital transformation and digital economy.  Look around you; social media is buzzing, internet is moving to 5G and now, the introduction of the 3D living experience in the metaverse.

The boomers probably missed these opportunities, but if you’re in the Gen Z category, you have to tag along the movement.

You can read on cryptocurrencies, NFTs, blockchain or Metaverse, but today’s write up is about how to create a secure digital foreign currency accounts. At least that should be a good start for you.

Benefits of Foreign Currency Account

Having a foreign currency account allows you to hold your money in foreign currencies like the US Dollars, Euros, Pounds or the Chinese Yen.

Most currencies in the world are pegged against the US dollar and the Pounds Sterling, so a slight disruption in the world economies affect the values of almost every currency. African countries are often at the receiving end.

For instance, the Ghana cedis which used to trade for 1 USD to GH 6.02 in January 2022, is now trading at 1 USD to GH 8.08 at the time of writing. According to Bloomberg, the cedi is the worst performing currency in Africa.

So if you live in Ghana, and you are concerned about the continues depreciation of the cedi, you might want to consider opening a digital dollar account.

You may have heard for cryptocurrencies and blockchain. If you aren’t familiar with this terms, allow me to briefly explain them to you as they’re central to what we would be learning here.

What is Cryptocurrency?

Digital dollar account alternatives include USDT, USDC and PAX
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Cryptocurrency is a digital currency or virtual money that is based on a blockchain or distributed ledger and secured with cryptography, making it almost impossible to counterfeit.

This decentralized digital currency is not regulated by any central monetary authority, and can be securely used for payments around the world.

What is blockchain?

According to the IBM, blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.

The assets are things with value that can be tracked and traded on a blockchain network, to reduce risk and costs.

How to get a digital dollar account on blockchain?

Digitized dollars such as USDC, Tether(USDT) and PAX Dollar(USDP) can be used as digital dollar currencies. Here is why;

  1. USDC is a stablecoin backed by a reserve of cash and short-term U.S. treasury bonds. The coin is pegged to $1 of value and is redeemable on a 1:1 basis for US dollars.
  2. USDT is also dollar pegged stablecoin alternative.
  3. Just like USDC and USDT, USDP is also pegged to $1 of value.

So what this means is that, you can deposit your local currency into USDC, USDT or USDP accounts, and use them as an alternative to a physical dollar note. You can invest with a minimum of $5 to a limit of $1,200 using credit or debit card.

You can also buy digital dollars through direct transfer from your bank account. This payment method is a bit technical, so if you’re not ‘blockchain-savvy’, I will advise you stick to the debit or credit card payments.

Digital dollar accounts are also interest earning accounts. When you invest, you earn interest per year on the amount. The interest rates vary among the three accounts.

According to blockchain, you can earn annual interest up to 11% each on your USDT, USDC, or USDP account.

Steps to create USDC, Tether or USDP account.

  1. First, you have to create a blockchain account on the blockchain website.
  2. Next is to download the blockchain App from Google Play store or iStore.
  3. Use your signup details to sign into the App and create a 4-digit pin for your private access.
  4. Creating the blockchain account automatically gives you access to the stablecoins on the platform.
  5. At the bottom of the blockchain dashboard in the App, tap on the big blue + button and select buy.
  6. Now, all the cryptocurrencies on blockchain including the stablecoins ( USD Coin, Tether and Pax Dollar) will show up.
  7. Select the digital dollar coin of your choice and input the amount you want to buy.
  8. Next is to input your debit or credit card details to make the purchase. Virtual cards are not accepted on blockchain yet.
  9. This process is secured with 256-Bit SSL encryption, so your privacy is protected. Finally, click on the Next button to complete the process. Your digital dollars will appear in your account in less than a minute.

What can digital currencies for used for?

Digital dollar can be used for payments. It is safer, faster and cheaper means for payments and transfers than traditional accounts that could take 2 – 3 days.

It also serves as a safe haven from inflation. If you live in countries with hyperinflation like Ghana and Nigeria, you can convert your money into USDC, USDT or USDP and other stablecoins to protect your eroding wealth.

You earn annual interest of 11% on USDC, USDT or USDP compared to local currency deposits which keeps eroding with inflation.

How safe is my digital dollar account on blockchain?

Digital currencies are safe on blockchain

Cryptocurrencies are safe on blockchain because, it has a password, pin and 2-Step verification. Your account is also protected with a 12-word secret backup recovery phrase that only you can access.

Again digital dollar account is also secured because, you can enable a biometric unlock feature to your account. No one can access your account without your fingers.

In addition, you have a feature to block unknown IP addresses from hackers. There is also a cloud backup feature to store your encrypted backup in your Google Drive account. This allows you to restore your wallet if you lose your phone or device.

So yes, your digital dollar account alternative is safe, unless blockchain dies which I don’t see happening anytime soon.

Conclusion on Alternative Digital Dollar Account

You must know that even with stablecoins, you are still in the crypto world and you must invest carefully. USDT, USDC and PAX are more than stable compared to Bitcoin, Ethereum and other cryptocurrencies; hence, the swings in prices will not affect your wealth.

If you are in Africa, particularly Nigeria or Ghana, this is an opportunity to earn two interests on one account.

First, the cedi is depreciating against the dollar, so if you have your money in a digital dollar account, you make a gain on the spread.

Secondly, your money in digital dollar alternative accounts (USDT, USDC and PAX) earns up to 11% per annum. So this a just a smart, legit thinking for you to explore.

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