Stablecoins are digital currencies with an unwavering exchange rate. Thousands of people buy and sell USDT and other coins of this type daily. They are convenient for trading, accumulating capital, and shielding an investment portfolio from the cryptos’ volatility. And how to sell usdt Keep on reading to get comprehensive info on stablecoins.
What are Stablecoins?
Stablecoins are cryptos linked to fiat money. The first stablecoin, Tether, appeared in 2015. Since then, it has been a leader among all cryptos equated to fiat money. The trendy stablecoins are a great asset. That is why people buy and sell USDT 24/7. It is a widespread unit of exchange and storage of capital among crypto investors. They are easier to trade in pairs with other digital currencies than with fiat money. Moreover, these coins are actively used in DeFi apps.
What Stablecoins are backed by?
Stablecoins can be backed by fiat money and other cryptos. The trendiest stablecoins are linked to the US dollar. Tether is the most obvious example of such a coin. 1 USDT equals $1 and has minimal deviations from this price.
Stablecoins with fiat backing
A considerable part of stablecoins is linked to a fiat currency price. Most stable cryptos are backed by a US dollar. Fiat backing of stablecoins on euros is called Stasis Euro (EURS).
Stablecoins backed by cryptocurrency
Many stablecoins are backed by various digital currencies. In this case, the permanence of the price of such a coin can be achieved through superfluous reservations. The most well-known example of such a stablecoin is DAI.
Algorithmic stablecoins are cryptos whose price steadiness is provided by various smart contracts and algorithms. The real value of such cryptos depends on specific price retention mechanisms and the actions of their owners. Among the trendiest stablecoins of this type, the UST from the Terra project is the leader.
Stablecoins are daily traded on more than 200 exchanges. Currently, the trendiest ones are USDT, USDC, BUSD, UST, and DAI. Let us have a closer look at them. More information about stablecoin comparison https://trends.aax.com/the-ultimate-comparison-top-stablecoins-ust-usdt-usdc on the AAX blog.
United States Dollar Tether is the very first and most admired coin launched by Tether. It is an electronic US dollar that is used in the digital world. It can be used to store capital, pay for goods/services, and trade other cryptos.
It is another popular stablecoin type that can be exchanged for US dollars at a ratio of 1:1. This coin is backed by US dollar assets stored in US-regulated financial establishments. Circle in partnership with Coinbase launched this coin.
Binance USD (BUSD)
Binance USD is a fiat-backed stablecoin linked to the US dollar price. For every unit of BUSD, there is one US dollar in reserve. The USD equivalent of the total BUSD supply is stored by Paxos and acts as reserves in FDIC-insured US banks. The current price of BUSD is $1. The current volume of BUSD is over $21 billion.
DAI, UST, and other coins
MakerDAO is an Ethereum-based smart contract platform that issues DAI coins. MakerDAO ranks first among the DeFi protocols in the ETH ecosystem regarding the amount of liquidity. DAI is one of the top five stablecoins. The current DAI price is one US dollar.
UST is an algorithmic stablecoin that is linked to the LUNA token. It was launched in the autumn of 2019. This stablecoin is a fairly new phenomenon in the crypto world. It is a great choice for such coins as BUSD and USDC. The other trendy coins are TrueUSD, Gemini Dollar, Neutrino USD, Fei USD, and Pax Dollar.