# <center>Introduction</center>
Good evening everyone, I feel so honored to be part of this great lessons, I believe this is one topic every investor on crypto will be very happy to come across,
As we are all aware of the risky nature of trading with cryptocurrencies, this is one topic that will really helped us to be fully make the necessary decisions with regards to trading in any currencies.
Let me use this medium to express my gratitude to professor @awesononso for taking his time in explaining this topic.
I would like to proceed on in answering the questions attached to this lesson.
> 1. Explain why Stability is important in Digital currencies.
*Crypto currency has faced a lot of challenges and risky moment and this has resulted in many investors losing a huge sums of money, Stability in lay man points means when something is stable amidst challenges or the ability to stand firm. As we all know , we use various currencies which are being controlled and monitored by the the central bank, they have great impact on the various currency and with digital currencies, they are not monitored or controlled by anyone but these currencies have its own ups and downs, and the challenge associated with these digital currencies are the volatility occurrences which means one can easily make profits/loss in just a space of a second. The various changes that goes on the market has to do with the law of demand and supply. As we get more people buying the coins, the prices increases and as people on the other sell the coins, prices begins to come down(fluctuations).
So with this we can clearly say that stability of a Coin is the ability of the to be stable or unchanged amidst changes on the market.
And when this state is achieved the benefits associated with stability of the coin is that it draws more investors as it will raise the trust on investors and thereby investing more which as a result of it will increase the value of the asset as more people will be owing. Every investor aim is to be on a safer side and stability of the coin is what every investor demands.*
># 2.Do you think CBDCs would be good in the future? Weigh the pros and cons in your own understanding and state your position.
Over here in my country the use of crypto coins has not legally be accepted but the use of mobile money system is widely use by most people. This is nothing different from the electronic coins and I believe its introduction into the system won't be quite difficult. Report from Bank of says that more people are using Electronic system for transaction more than cheque and I believe in the future with the introduction of CBDCs will be widely accepted by most people.
CBDCs has its own Pros and cons and these are discussed below.
Pros Associated with CBDCs
* It will be fast, and efficient means of exchange.
* Physical currencies like the pound, dollar and cedi will stand the threat of cryptocurrencies in the future.
* Less use of physical cash will also provide security benefit against armed robbers.
* Though it will still be controlled by the central bank but this time the intermediary work of the bank will be limited as it will just be the consumer and the use.
* This will also help most countries to accept crypto currencies as a form and a medium of exchange.
* This when introduced will enhanced the development of monetary policies in the country.
* Also it will check illegal activities like fraud, money laundering etc.
Cons Associated with CBDCs
* Since this will be use digitally, most people would be affected with their jobs as most of the work of the banks will be limited.
* Potential competition between central banks and commercial banks for consumer deposits, interest and lending
* Though is a digital currency, but it will still be monitored and controlled by the central bank which will not deal away with the centralized system thereby giving decentralization.
* In my country here, since most of the people are illiterates with the use of technology, it will be very difficult to be accepted and widely use, its patronage will be less compare to most advanced countries where technologies are high.
* The cost involve is something we can't overlook as government has to throw more resources in ensuring its existence
The advantages associated with CBDCs far at weigh that of the disadvantages and can clearly it functioning in the near future.
**QUESTION NO 3**
# EXPLAIN IN YOUR OWN WORDS HOW REBASE TOKENS WORKS, GIVE ILLUSTRATION.
Rebase can clearly be defined as a token designed to automatically adjust in the way of expansions and contraction of
> Rebase tokens are similar to stablecoins, in the way that they both have price targets. However, unlike stablecoins, rebase tokens’ have an elastic supply, meaning the circulating supply adjusts accordingly to supply and demand, without changing the value of the tokens in users’ wallets.
This perfectly uses the law of demand and supply.
### This is how it works
For instance let's say I have rebase token worth of $50, when there is an increase in the market as a results of many demanding the coin, the quantity of my tokens will definitely change let's say double of my initial token but the value of the price of the token still remains $50, in the same way if there is a fall in that particular, though the amount of token will decrease as well but at the same value of $50.
Rebase token is designed in such a way that when there is changes in the price of a particular tokens, it only affects the tokens but not the value of that particular tokens.
>QUESTION NO 4
GO TO THE HTTPS://WWW.AMPLEFORTH.ORG/DASHBOARD/. CHECK THE NECESSARY PARAMETERS AND CALCULATE THE REBASE %. WHAT ELSE CAN YOU FIND ON THE PAGE?
From the Diagram, we can see
Oracle rate=$1.003
Price Target=$1.061
To calculate the Rebase %
Rebase % = {[(Oracle Rate - Price Target) / Price Target] x 100} / 10
We then input the values into the formula, we have
={[( 1.003 - 1.061) / 1.061 ] ×100} / 10
={[(-0.058) / 1.061 ] × 100} / 10
={[(-0.055)]× 100}/10
= (-5.5) / 10
= -0.55
So our Rebase %= -0.55%
I could also see this
The Market Gap
I could also see some readings which is time for the next Rebase on the far left and CIRCULATING / TOTAL SUPPLY on the far right and some few other item on the top.
I can also see these items at the top.
* learn
* trade
* stake
* Dashboard
* community and
* Governance and they are all clickable meaning they all have some information's attached
>QUESTION NO 5
TRADE SOME TOKENS FOR AT LEAST $15 WORTH OF USDT ON BINANCE AND EXPLAIN YOUR STEPS. (GIVE NECESSARY SCREENSHOTS OF THE TRANSACTION).
For this particular question, I would like to submit the steps for now so
Steps in Trading $15 worth of USDt on Binance.
Step 1
You Log into your binance accounts, and you then proceed to your spot wallet account.
successfully logged in
Step 2. You then selected your coin that you want to trade for the USDT.,Here I choose to go for BTC, You then clicked on the coin selected and check on trade and you select the pair BTC/USDT because that is what we want to trade our BTC for.
Since we are selling BTC for UDST, you click on sell and let it the at the market price for immediate transactions to carry out.. meaning we are selling at the current market price
Step3
You then select the amount you want to trade and click on sell and instantly you should see your USDT added to the coins you owing according the highest value
Now we have successfully traded for BTC/USDT
### After Trading successfully my wallet shows
Question 6
>TRANSFER THE USDT TO ANOTHER WALLET WITH THE TRON NETWORK. FROM THE TRANSACTION, WHAT'S ARE THE PROS OF THE STABLE COIN OVER FIAT MONEY TRANSACTIONS? (GIVE SCREENSHOT OF THE TRANSACTION
# The Steps in Transferring the USDT to another wallet with the Tron Network.
You first of all log in into your binance account just as we did trading BTC for USDT.
You then proceed to open your spot wallet and click of USDT, because this time that is what we are trading.
You Then click on withdraw just as shown
Before we can proceed any further, we need to get an address from our tron wallets before we can proceed further.
2. The next step is to copy your address from the Tron network and also the amount you wish to withdraw into your tron wallet,
Click on withdraw and wait patiently for the account confirmation, a code will both sent to your phone(number) and email for verification.
Click on submit and you are good to go
After the transaction, the PROS OF THE STABLE COIN OVER FIAT MONEY are as follows
It is very secured.. before the confirmation of the transaction, a code was sent to me both on phone and email address which will make it very difficult to lose your coins.
Again, After just 2 mins, my transaction was confirmed which makes it fast and convenient.
It is very easy to use, I was able to do this transaction just on my first trail and that makes more easier for new beginners just like me
Another thing I would to mention is Low Transaction Fee.
The charged on the transaction was just 1USDT which is quite cheaper compared to fiat currencies when making transactions
<center>CONCLUSION</center>
The dream of every investor being it crypto world or other investment platform is to maximize profit and minimize loss, so when it happens there is stability in cryptocurrency, it will draw more investor onto the crypto market thereby increasing the value of coins on the market. The introduction of the Stability in Digital currencies is something most nation is considering and we are looking forward for a quick implementation.
Before I end, let me again thank professor @awesononso for taking your time in explaining this into details.