Welcome to the world of Stablecoins!
Stablecoins are cryptocurrencies that are created to minimize price volatility in cryptocurrency markets. Stablecoins are linked to some real asset such as fiat currencies (US dollars, euros, etc.) or precious metals such as gold.
Stablecoins can be issued in a variety of ways, but the most common way is a mechanism that links the price of the cryptocurrency to the price of fiat currency in a certain ratio. For example, the USDT (Tether) stablecoin is tied to the price of the US dollar at a 1:1 ratio.
What are the advantages of stablecoins?
Here are some of them:
Low volatility. This is due to the fact that stablecoins are backed by real assets such as fiat currencies, gold, oil, etc. and means that the price of a stablecoin will not be subject to large fluctuations as is the case with other cryptocurrencies.
High speed of transactions. The transfer of stablecoins over the blockchain is very fast and low cost. This makes stablecoins ideal for transferring money, especially when traditional transfer methods become unavailable or too expensive.
Liquidity. Due to the fact that stablecoins are backed by real assets, they are highly liquid. This means that users can easily buy and sell stablecoins on cryptocurrency exchanges.
Security. Generally, stablecoins are backed by real assets. This means that they have a high level of security and the risks of losing money are minimal. The use of stablecoins can be a useful tool for risk diversification and capital protection in the cryptocurrency market.
Compatibility with cryptocurrencies. Stablecoins can be used as a “stable coin” when trading cryptocurrencies. This allows users to reduce risks from strong fluctuations in the price of cryptocurrency.
What are some popular stablecoins?
Tether (USDT)
The most popular stablecoin, which is pegged to the US dollar at a 1:1 ratio.
USD Coin (USDC)
A stablecoin created by Circle and Coinbase that is also pegged to the US dollar.
Dai (DAI)
Ethereum-based stablecoin developed by MakerDAO. It is tied to the value of the U.S. dollar.
TrueUSD (TUSD)
Stablecoin, which is also pegged to the U.S. dollar and uses auditors to provide transparency about its reserves.
Pax Dollar (USDP)
Stablecoin, which is backed by Paxos Trust Company and is also pegged to the US dollar.
Binance USD (BUSD)
It is a stablecoin created by Binance that is also pegged to the US dollar.
USDD
A stablecoin pegged to the US dollar. Its price varies within 1 dollar.
Gemini Dollar (GUSD)
Stablecoin issued by Gemini Trust Company LLC. It is pegged to the U.S. dollar in the ratio 1:1, that is, its price should always be approximately equal to 1 dollar.
Stablecoin Exchange
Stablecoins can be exchanged on cryptocurrency exchanges where they are traded on par with other cryptocurrencies such as bitcoin, ethereum and others. Users can buy Stablecoins with fiat money or other cryptocurrencies and sell them back on the exchange.
It is also possible to exchange Stablecoins at a stationary exchange, if the owner of the exchange offers this service. It is important to make sure that the exchange is reliable and safe, as well as to study the terms of exchange and the fees charged.
The list of exchangers where you can quickly and safely exchange your Stablecoins for other cryptocurrencies or fiat currencies, getting the best prices on the market, you can look at our website in the “Places” section.
