Which Stablecoin is best to use in 2022?

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LAFFAZ Media
LAFFAZ Media

Investing in more stable cryptocurrencies makes a good way to grow your profits and at the same time stay safer in terms of losses. Stablecoins have the value-based either on precious metals or international fiat currency such as the euro or dollar. Oftentimes, a stable coin’s value equals 1 USD or close to it. In other words, they are tied to external assets.

In other cases, these stable coins are connected to other crypto coins’ values. If you are curious about the most promising stable coins to buy this year, read on.

Top 6 Stablecoins to Consider Buying in 2022 and Their Peculiarities

So, investors have an eye on stable coins thanks to the stability of the cryptocurrency, safety and being grounded in real-life commodities, lower fees, and an acceptable level of regulation through fiat currencies.

But which of them are the most stable, as for this year? Have a look at our top 6 stablecoins list.

1. Tether (USDT)

Tether emerged as one of the earliest stable coins on the market in 2014 and now is the 4th most valuable coin by market cap. USDT is pegged 1:1 to the dollar and the project claims that it has the cash to back up every USDT coin out there. A lot of investors who want to avoid market manipulation and high risks choose Tether. In trading, it’s also safer to exchange USDT to AVAX or other altcoins to get revenue.

2. TrueUSD (TUSD)

What you need to know about this coin is that TUSD is fully collateralized, backed up by the U.S. dollar in a 1:1 ratio, is steadily protected, and is a verified ERC-20 coin.

3. USD Coin (USDC)

The Centre domain issued the coin called USD Coin. This domain is a venture between Coinbase and Circle.

The USDC is tied to dollar-based assets regulated by the major financial institutions of the US. The growing demand has arisen because of several coins’ uses such as decentralized finance technology.

4. Dai (DAI)

Originated in 2015, DAI is also tied to the U.S. dollar but is also supported by Ether-based tokens. Now Dai is among the 40 most valuable coins by market capitalization. While the market is quite volatile for Dai, it stands as a rival to Tether.

At first, Dai was launched supporting only one collateral – Pooled Ether. This made the token more stable. If Ethereum crashed down, the coin’s CPD would be capable to have more value than needed to pay off the debt. Makers were able to increase the price of DAI by recapitalizing the market and at the same time reducing the supply of Pooled Ethereum. Today, a maker also can use the Target Rate Feedback Mechanism (TRFM) which is super effective for maintaining the coin’s stability. For instance, when TRFM is working, the DAI price rises whenever it drops below 1 USD.

5. Binance USD (BUSD)

We can be confident that the token Binance USD is at the peak of its popularity. This stable coin is produced by the Binance company. This exclusive coin is a Binance digital asset pegged to physical money — the dollar. These days BUSD is widely used and loved for its speed and functionality.

6. Paxos Standard (PAX)

The Paxos coin is a programmable asset running on the Ethereum network mainly popular for reduced cross-border transaction fees and being collateralized in fiat. What is more, there are no charges for PAX conversion and transaction, it is available on most exchange platforms, and keeps users trusting due to the 1:1 stability mechanism which makes volatility not a big problem. PAX also got the approval of Wall Street regulators.

Where can you get the full information on each of these coins are other assets? If you would like to have one reliable place to exchange pairs such as BTC to USDT or ETH to Paxos, check out LetsExchange.io — this service will provide real-time data, accurate price forecasts, and news on stablecoins, and more.

Sakshi Kumar
Sakshi Kumar

Ex-Features Writer at LAFFAZ. Sakshi writes resource guides around various topics and industries including: Digital Marketing, Data Analytics, E-Commerce, Education, Logistics, Real Estate, Banking, and Travel. Sakshi utiliszes her Marketing skills and knowledge to educate aspiring bloggers and marketers.

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