We have shared tons of knowledge with our readers about various cryptocurrencies and are quite hopeful that they have helped you to make appropriate decisions and hopefully you have earned a good amount of money through your investments in different cryptos.
Today we are here with some different categories of cryptos known as the “Stablecoins”. If you are scared of investing your money in volatile crypto coins then stablecoins would be a perfect option. If you are eager to find out more about them then scroll down and get to know everything about stablecoins cryptocurrency in just a matter of minutes!
What Are Stablecoins?
Before finding out about the stablecoins you must know what are they! Stablecoins are one of the most perfect things offered in the digital currency world up till now. These coins are linked and backed with reserved assets like any currency or gold and as a consequence their values are involatile. Since the value of stablecoins is more “stable” than other crypto coins and fiat money so many people find them as a good investment option.
During the last year, the worth of all the stablecoins was $10 billion. Moreover, investors tend to trust them more because they guarantee security and privacy without any fear of loss. While according to the latest reports, people in Brazil are choosing stablecoins over their own currency due to doubt of deflation of their fiat money.
Advantages Of Stablecoins
There are numerous benefits of possessing stablecoins as you can make transactions and trade at low cost, more speed, anytime, with security, without fear of losing anything, and etc. As many stablecoins have arrived in the market so you have a lot of options and each one has different and better features.
Disadvantages Of Stablecoins
There aren’t many disadvantages of stablecoins; however, always keep in mind while buying one because you might procure it from a person or place that isn’t trusted. Moreover, the money you invest should be returned to you when you wish (without any kind of reduction) so it is better to invest in the one which is more reputed.
BEST STABLECOINS of 2021
Now, let’s dive into the information about the 5-best rated stablecoins!
1) USDT (Tether)
The stablecoin USDT has been launched by “Tether” which is a blockchain-based cryptocurrency. The value of USDT in the crypto market is USD 1 and there are no chances of its decrease as it is backed up by fiat currencies like Yen, US Dollar, and Euro. The USDT tokens can be bought by anyone and the system is very simple; when an investor buys USDT from Tether, they take the money and add them to their reserves and supply the USDT to the investor.
The transparency of Tether is considered its best feature and you can easily trade, buy, and sell anything you wish using USDTs; moreover, other crypto coins can also be bought using them like in February 2021, 57% of people bought Bitcoins using USDTs.
2) USDC (Coinbase)
USDC stands for US Dollar Coin which depicts the 1:1 ratio of their value as each USDC is equal to USD 1. The idea of this kind of cryptocurrency came into existence by the collaboration of crypto exchange Coinbase and fintech company Circle. The purpose behind USDC is to let it move around the globe instead of fiat currency and bank transfers.
The tokens USDC are linked to Ethereum blockchain and widened to Solana and Algorand blockchains as well. These can be stored in any hardware or software wallets so, you can keep them as your savings, or run your business, pay, trade, and do whatever you wish with your USDCs.
3) BUSD (Binance)
Looking for the pioneers of stablecoins then don’t go anywhere as BUSD is the one! BUSD is the first stablecoin that was approved by the New York State Department of Financial Services Launched by Paxos and Binance. Like others, BUSD’s value is also equal to USD 1. The BUSD is ERC-20 token also affirmed by BEP-2.
As it is a part of Binance so there are very few chances of any loopholes while speed, security, transparency, and transactions are effortless when executed through BUSD tokens. The tokens can be easily bought and burned as smart contracts which are a part of trading so they build more trust of the customers over the brand. In 2021, the circulation supply of BUSD has been $200 million; whereas, the trading volume has been around $100 million.
4) DAI
Let’s demystify the idea related to DAI stablecoin for you! Dai is a stablecoin crypto and each value for one USD. The biggest advantage of DAI is its decentralized feature that ensures privacy and sustainability without any sort of losses. This token has made trading accessible as you can use it for any purpose anywhere which means that you don’t need a bank account for your transactions as you can keep your money in the form of DAI in any crypto wallet and don’t have to look at the clock or day as you have to while transacting through a bank account.
Anyone can buy DAI tokens from Coinbase, Kucoin, etc. In such less time, DAI has earned a great reputation and the stakes are high for it.
5) UST (Terra)
UST also known as TerraUSD has appeared in the crypto world in 2020 but its strategies as a stablecoin are being appreciated by all as they have tried to remove all kinds of problems that were identified in all its competitors. Terraform’s UST is a gate to the DeFi market for investors. The main features of UST include scalability, interchain capabilities, and others while the customers are quite satisfied by their service and policies.
The demand for UST has been increasing more and more while on the other hand, the network has been launched in Korea as TerraKRW.
Comparing the stablecoin tokens to other volatile crypto coins, it would be better to go for stablecoins if you aren’t in the mood to make a lot of money with your investment and wish to play safe!
