All You Need To Know About Stablecoins?

The term “stablecoin” is a cryptocurrency that has a fixed value and does not fluctuate in price. The goal of these coins is to make them more reliable than other cryptocurrencies, such as Bitcoin and Ethereum, which can be extremely volatile.

Cryptocurrencies are volatile. Bitcoin has had a rollercoaster of highs and lows. With prices well over $61,000 in April 2021 before dropping below $30,000 in July 2021. The price is currently hovering around $51,000. This makes it difficult for cryptocurrency owners to use their coins for anything besides trading or speculation on the future value of the coin. That's why there are companies out there creating cryptocurrencies that have stable values pegged to actual assets; like gold or fiat currencies like the US dollar. These types of cryptocurrencies are "stablecoins".

One of the most popular stablecoins is Tether (USDT), which maintains its value by pegging it to the U.S. dollar at 1:1. There are many benefits associated with using stablecoins; however, there are also some risks involved with investing in this type of currency because it’s backed by real money rather than blockchain technology or mining like Bitcoin and Ethereum.

We list down the top 3 stablecoins below:

1. Tether (USDT):

Tether is a cryptocurrency token created by the company Tether Limited. The idea behind tether is to be pegged one-to-one against the US dollar. This means that USDT will always equal $1, and there can never be any more than 100 million of them in circulation at any given time. They are used as an alternative to fiat currencies for storing value without having to use banks or other institutions.

The current market cap of USDT is over $93 Billion.

2. USD (USDC):

USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar and runs on the Ethereum, Stellar, Algorand, Solana, and Tron blockchains as well as on the Hedera Hashgraph system. It (USDC) is a type of cryptocurrency that is referred to as a stablecoin. You can always redeem 1 USD Coin for US$1.00, giving it a stable price.

The current market cap of USDC is over $27 Billion.

3. Binance USD (BUSD):

BUSD is a regulated, fiat-backed stablecoin pegged to the U.S. dollar. For every unit of BUSD, there is one USD in reserve. In other words, the supply of BUSD is pegged to the U.S. dollar at a 1:1 ratio. Holders can swap their tokens for fiat and vice versa. You can read more about Binance here.

The current market cap of BUSD is over $12 Billion.

You don’t have to worry about the volatility of cryptocurrency when you hold stablecoins. If your goal is making money, then investing in cryptocurrencies may not be for you because there are so many market factors that can affect it. However, if you want a more stable option (or an opportunity to make some quick cash), then investing in crypto-backed digital coins like Tether or TrueUSD might be worth considering. They offer protection against volatile markets and allow users to easily trade between them at any time without having to convert back into fiat currency first; this makes it easier than ever before for people with different investment goals or risk tolerances to participate.

If you want to be ahead of the curve, we've got some awesome cryptocurrency clothing lines with t-shirts, hoodiestank topshats, and even laptop sleeves! Head over here now to get FREE shipping and 10% off on your first order.