Crypto stablecoins are pegged and backed by different assets or a single reserve. These reserves help maintain a stable price over time, even when the ETH fluctuates; hence, they have started grabbing investors’ attention.
Are you looking for a stablecoin list to invest in in 2022? Then, jump onto the next section of this blog!
Top 5 Stablecoins You Have to Invest in Right Now!
As one of the oldest stablecoins in the world, Tether redefines low-risk trading in the digital space. It is among the most traded tokens in daily volume and pegged at 1 USD to 1 Tether USDT. As means to facilitate secure transactions, Tether has world-class compliance measures such as;
- Anti-Money Laundering (AML)
- Countering the Financing of Terrorism (CFT) sanctions
- Know Your Customer (KYC) regulations
Launched in 2019, Binance USD or BUSD has quickly become a common platform for money worldwide. BUSD is a U.S. Dollar-backed stablecoin regulated by the New York State Department of Financial Services, making it very reliable. In addition, this stablecoin provides a great investment opportunity to preserve wealth and stabilise your portfolio.
USD Coin (USDC)
Backed by Circle and Coinbase, USDC is a widely accepted stablecoin built on the Ethereum blockchain. In addition, it is a fully-reserved stablecoin, meaning every USD Coin is always redeemable 1:1 for U.S. Dollars. It is also easily compatible with DeFi solutions applications.
DAI stands out from the rest of the stablecoins as it is backed by cryptocurrencies. At the same time, volatility is a fear associated with crypt-backed stablecoins and DAI counters by over-collateralising. Furthermore, the smart contract protocols by DAI’s parent company, MakerDAO, allow users to safely keep their collateral assets like ETH in exchange for DAI. As a result, DAI has been observed to withstand huge market crashes, making it inevitably of the best stablecoins.
True USD (TUSD)
Founded in 2018, TUSD came into the limelight for being the first stable coin with real-time audits and proof of reserves. 100% collateralised by the U.S. Dollar, True USD is an excellent choice if you want to invest with an emphasis on regulation above everything.
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Frequently Asked Questions
Q1) What is the most trustworthy stablecoin?
Ans) Tether is voted the most popular stablecoins by crypto-enthusiasts. As the name suggests, it ‘tethers’ itself to the value of the USD. Known for its secure and easy integration with cryptocurrency to fiat platforms, it is backed by precious metal and cash reserves.
Q2) What is the benefit of buying stablecoins?
Ans) Stablecoins allow users to enjoy all benefits of cryptocurrency; rapid transactions & low fees while saving them the worry of volatility. Therefore, people from high inflation economies can store the value of their savings in an asset pegged to a more stable currency, like the U.S. dollar.
Q3) What are the disadvantages of stablecoins?
Ans) Some of the drawbacks of investing in stablecoins are:
- Trusted third-party required
- Decreased ROI
- Lots of regulations involved
- Frequent external audits required