The rise of cryptocurrencies over the past decade has introduced not only exciting opportunities for financial innovation, such as stablecoins, but you may wonder, “Can you store stablecoins on the Ledger?”.

Stablecoins are cryptocurrencies designed to maintain a stable value relative to real-world assets, addressing volatility concerns. As stablecoins continue to gain popularity, more people are looking for secure ways to store and manage their holdings, such as in hardware wallets like Ledger.

In this article, we'll explore common stablecoin storage options, with a focus on using hardware wallets like the popular Ledger device. Let’s continue with understanding the innovative types of cryptocurrencies first: stablecoins!

What is stablecoin?

Stablecoins are cryptocurrencies designed to minimize price volatility. Whereas other native cryptocurrencies can experience wild price swings, stablecoins aim to maintain a steady value, usually by pegging their market price to a real-world asset.

The most common type is fiat-backed stablecoins, where the issuers hold reserves in traditional currencies like the euro to give each token a stable 1 euro value.

They fulfill a crucial need within the crypto ecosystem by providing a less volatile means of transacting, crypto trading, and cryptocurrency exchange value. They also open up new possibilities for decentralized finance and decentralized applications that rely on price stability.

As we'll explore next, properly securing stablecoin holdings is equally important given their growing role in both CeFi and DeFi. We will also discover a secure stablecoin option, EURK.

How do stablecoins work?

Most stablecoins employ a collateralization model where crypto asset reserves fully back the outstanding token supply. For example, the issuer holds €1 in a bank account for each unit of EURK stablecoin issued.

This collateralization helps maintain the stablecoin's value within a tight band relative to the reference currency. Behind the scenes, a smart contract system using blockchain technology scans the reserves and pegs the stablecoin supply accordingly.

When users convert dollars to stablecoins, the exchange mints new crypto tokens and deposits the fiat proceeds into reserves. Redemptions work in reverse, with exchanges burning tokens and users receiving dollars from reserves. You can also check out the “How do stablecoins work?” guide for more details.

Together, collateralization and smart contract oversight aim to minimize volatility. But holders still face counterparty risks if an exchange loses funds or becomes insolvent. This is where independent crypto custody of stablecoins, such as in a personal hardware wallet, becomes important for security.

Where do you store stablecoins?

The two main options for storing stablecoins are centralized and decentralized exchanges and personal crypto wallets.

Here are the details:

Centralized and decentralized exchanges

Major exchanges like Coinstore and CBQ allow users to hold stablecoins, such as EURK, in exchange accounts. Funds remain under the exchange's control but provide easy trading stablecoin access.

Personal wallets

For independent custody of keys and funds, personal types of crypto wallets present a better option. Software, desktops, and mobile wallets let you control private keys, though funds remain online.

For maximum security, hardware wallets like Ledger remove even an Internet connection vulnerability during use. Hardware wallets provide arguably the most secure storage due to their offline, air-gapped design. Therefore, you can easily and securely store stablecoins on the ledger.

What is EURK?

EURK is a euro stablecoin that maintains a 1:1 value with the euro currency. Issued and audited by Cryptobunq, EURK brings stability, security, and transparency to digital euro transactions.

Regulated one-stop shop crypto service providers like Cryptobunq hold one euro in reserve for each EURK token, providing buyers and sellers with confidence in its reliability.

The EURK stablecoin operates across major blockchains and is available on ERC20. This multi-chain presence makes it compatible for decentralized finance use cases like lending, borrowing, payments, and exchange settlements.

EURK transactions also benefit from speed, low cost, and 24/7 availability, outperforming traditional bank wires, especially on weekends or holidays. Further assurances come from regular attestations of EURK reserves by top accounting firms.

Full reserve backing and public verification give EURK users trust that every token is redeemable 1:1 for euros whenever needed. The stability and security of the EURK open up new doors for euro adoption in digital commerce and finance on a global scale.

How do I buy EURK on Cryptobunq?

Cryptobunq is an expert crypto service provider that you can trust for everything from batch payments to checkout and invoicing solutions. CBQ is also the issuer of EURK stablecoin, and you can easily buy EURK on Cryptobunq.

Here is the simple, three-step process:

Register for a Cryptobunq account.

Have funds ready in your selected fiat currency, such as euros, to purchase EURK tokens.

Connect a payment method

Cryptobunq accepts major debit and credit cards, as well as wire transfers from eligible banks. Fees may apply depending on the deposit method used.

Buy EURK

Locate and select the EURK/EUR trading pair on Cryptobunq's exchange platform. Enter the amount of euros you wish to convert to stablecoins and complete the purchase.

Your new EURK tokens will appear instantly in your Cryptobunq euro stablecoin wallet, where you can use, send, or withdraw them at will.

CBQ also lets you convert EURK back to euros anytime by selling on the exchange. You can also sell EURK and transfer EURK easily. Transaction speed, low fees, and the euro peg give EURK buyers assurance of a decentralized and reliable stablecoin.

If you have hesitation about stablecoins, you can check out “Are stablecoins a good investment?”, “How profitable are stablecoins?”, and “Why should you invest in euro-based stablecoins?” to decide if they are suitable for you.

How do you store EURK in a ledger wallet?

For those seeking maximum security and control of their EURK holdings, hardware wallets like the Ledger offer "cold storage" protection. Here are the basic steps to configure a ledger for EURK storage:

• Set up the Ledger hardware wallet by installing the Ledger Live application on a computer and initializing the device during the onboarding process.
• Within Ledger Live, install the EURK stablecoin wallet application through the device's manager. This allows the crypto wallet to interface with EURK's blockchain.
• Obtain your EURK receiving address within Ledger Live's EURK wallet screen. Make note of this 48-character alphanumeric code.
• Send EURK from your exchange wallet to the new Ledger address. Withdraw EURK from your exchange wallet and transfer it to the secure hardware device.
• With only your physical Ledger device connected to Ledger Live, you can now send, receive, and check your EURK balance. Private keys remain securely on offline hardware.

Storing EURK in a non-custodial Ledger wallet gives you ownership of funds without reliance on exchanges or centralized services. For long-term holdings, hardware storage remains one of the safest options available.

The bottom line: exploring stablecoin security options

As cryptocurrencies continue to gain prominence, more innovation focuses on reducing volatility for practical usability. Stablecoins aim to fulfill this need with value-stable digital assets and next-gen transaction capabilities.

However, properly securing your crypto assets remains crucial, given digital assets' potential vulnerabilities. Centralized services offer convenience but rely on third parties, while personal wallet control provides independence at the cost of experience.

For maximum security that removes reliance on internet connectivity, hardware storage represents a smart choice, and EURK proves perfectly suitable for hardware storage given its link to the stable euro.

Overall, stablecoins open up global finance to more users when paired with robust security practices. With care, stablecoins can achieve their vision of convenient, durable digital value.

You can also benefit from CBQ’s custody and wallet solutions for maximum security to protect and store your EURK stablecoin. As the issuer of EURK, CBQ offers wallet solutions to protect it too. Contact us and explore our expert services!