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RE: HowTo Buy Crypto – Part 1: LiteBit
Upvoted. Thanks for the share. Does the price of these credits fluctuate -
I'm assuming they don't and it's like Tether. Do these LiteBits get audited? Also, I'm assuming Americans can buy them but is there any point for us to use them on a Euro exchange?
They're pegged to the Euro and backed by LiteBit and limited to funds deposited and held by customers. They are very different from USDT in that they are not tokens created out of thin air, but rather credits in the strictest sense of the word - when you deposit Euros for credits, the company backs those credits as though they were Euros, and you can withdraw them at any time without any problem. The same when you sell one of the cryptocurrencies they work with - you sell for a credit equivalent to Euros. You can also bypass the credits altogether, buying directly on making your fiat transfer, or having your Euros sent to you directly upon selling. The credit system is therefore a convenience in that it allows you to accumulate before actually buying or withdrawing. You can also just keep them in a crypto downturn - like what we've seen these past few weeks - and then buy back without having had to send back and forth to your bank. In so far as audits go, I don't have a concrete answer for you - that would be a good question for me to ask them - but being a legitimate and licensed Dutch business, I'd have to say that they're on the up and up.
Thank you for the explanation. So they are stable like fiat currencies (in the short term), but you don't have to worry about sending to and from the bank. These mediums could get very popular.