Stablecoins are a type of cryptocurrency whose value is tied to fiat money or precious metals. Most often, stablecoins are tied to the US dollar, at the rate of 1 asset = 1 dollar.
What is the best place to buy stablecoins? Stablecoins are primarily used by cryptocurrency exchanges to quickly and cheaply transfer large amounts of dollars to each other. It’s also actively used by ordinary users when trading on a crypto exchange.
Stablecoins represent a relatively new type of cryptocurrency. As the name speaks for itself, these coins are stable because their value in fiat currencies doesn’t fluctuate, unlike Bitcoin and Ethereum.
Today, there are many types of stablecoins on the market. In this article, we will show you a list of the best stablecoins to buy in 2021. Let’s get started!
Best Decentralized Stablecoins: MakerDAO
From the very beginning, let’s consider the best decentralized stablecoins. A decentralized stablecoin is a relatively new type of stablecoin that doesn’t have a central regulator, but is managed by a consensus of users who participate in the network. The most well-known example of a decentralized stablecoin is Maker DAO — DAI.
Maker DAO is a decentralized autonomous organization that offers a new approach to creating stablecoins. The project was launched in 2017 and offered its own stablecoin known as DAI which is tied to the US dollar.
However, the coin wasn’t based on the US dollar like Tether or TUSD. It’s based on Ethereum. This is a classic example of a cryptocurrency stablecoin, which isn’t based on a clear link to fiat currencies.
However, this cryptocurrency has been criticized for its high complexity in terms of understanding by other market players. The project became popular only in 2019 and formed the basis of DeFi. You can use DeFi to get interest on DAI loans.
Best Performing Stablecoins: What Are They?
There are several of the most well-known stablecoins that have a high level of liquidity, reliability, and are popular among investors and traders. What are the best performing stablecoins? Let’s find out!
Tether is a stable cryptocurrency that always comes to mind first when this type of crypto asset is mentioned. It appeared in early 2015.
It’s based on fiat in a one-to-one ratio. USDT tokens are based on the ERC-20 standard and are correlated as one-to-one in relation to the US dollar.
In 2019, the stablecoin was allegedly used to manipulate the market as it’s closely related to fiat currencies and is easier to manipulate.
In addition, millions of tokens were used, which could be bought on this exchange. However, the tokens were bought without any audit, which contradicts the original purpose of creating this stablecoin.
However, Tether is most commonly used in stablecoin trading and is in the top 3 cryptocurrencies according to CoinMarketCap.
This token is also a USD-based stablecoin and is based on the ERC-20 standard as well. At first glance, it looks a lot like Tether and it can be difficult to decide which one to choose.
However, trueUSD is audited by independent experts and is completely transparent. Moreover, the certification results are regularly published and anyone can see them on Twitter.
This stablecoin has reached a capitalization of $274.92 million. Moreover, traders and investors can familiarize themselves with the latest data on certification of TrueUSD.
The token is managed by real people who have previously worked for well-known companies such as Google, PwC, and UC Berkeley.
The company plans to tokenize other real assets such as the euro, various bonds, the Japanese yen, and so on. Thus, it’s possible to bring even more stability to the volatile world of cryptocurrencies.
We continue our review of the best performing stablecoins. Carbon is another stable cryptocurrency.
But it isn’t based on the standard blockchain that we have seen so far. Instead, a hashgraph is used here.
The stability of the Carbon token’s value is achieved through an algorithmic model that makes it easier to reach consensus and determines the correct price for each individual unit of the coin.
The main goal of the token developers is to create a more inclusive and efficient model of the world economy. They are about to promote the Carbon token as a trading pair and within the global payment system.
At first glance, Havven is a unique stablecoin that cannot be found on the crypto market.
However, if you dig deeper, it’s still tied to cryptocurrency. However, the approach itself is quite different. The project uses the philosophy of producers and consumers to achieve stability.
The cryptocurrency uses the structure of two tokens — Havven and Nomin. The latter is a stablecoin, and the former is its cryptocurrency nexus.
Havven has a fixed supply, while Nomin has a floating supply and price. The token is tied exactly to the US dollar. Havven holders are entitled to issue a certain amount of Nomin in proportion to the US dollars.
Best Place to Buy Stablecoins: Crypto Exchange
What is the best place to buy stablecoins? If you want to buy stablecoins, it’s best to open an account on one of the various payment service providers. After paying in a certain sum of money (for example by transfer or credit card), stablecoins can now be purchased. The corresponding account balance is then saved in the network and an owner can trade a digital currency at any time.
Still, what is the best place to buy stablecoins USD? If you’re interested in buying USDT20 safely, you should definitely think about doing this at Switchere. On our platform, you have an opportunity to buy and sell USDT20 in the fastest and most convenient way. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.
Many experts believe that stablecoins have a great future as they have already proven their value in the long term and the interest of users in them during the crisis.
What are the best stablecoins in your opinion? Feel free to share your thoughts in the comments!