Cryptocurrencies are valuable, but many investors don’t like the fluctuations in market value (price).
For over 3 years now, the value of Bitcoins have steadily increased by over 1000%. As it has increased so also has it dropped. For investors, these price fluctuations are a huge turn-off.
But if you’re considering the cryptocurrency to invest in 2022, then this post is for you.
Stable coins are a type of cryptocurrency that remains stable like their name. They are less volatile and they help to create a balance between cryptocurrencies and fiat currencies. The extreme price fluctuations are backed by real assets, this helps to keep control of the price
Since it’s inception into the world of NFT’s and DeFi, stable found has gained it’s own popularity and has been steadily rising to fame. Like the name implies it offers a stable source of investment.
Stable coins can be commodities like gold, precious metals, and real estate. All of these have to be backed by Fiat or even another higher crypto currency like Ethereum and bitcoin.
If you want to play it safe with your investments, stablecoins are your best bet.
Below is a list of the top 5 stablecoins that will be worth the addition to your diverse investment portfolio.
- Binance USD (BUSD)
Paxos and Binance came together an me launched well-received crypto in September 2019 called Binance. This Binance is backed by US Dollar and sometime in 2021, it rose to can’t. The New York State Department of Financial Services will be in charge of regulating this.
The platform itself can be used to send money globally. It uses tokens that are issued as ERC-20 (ERC-20 is Ethereum’s standard protocol for ethereum based smart contracts). You can buy Binance from crypto currency platforms like ZT, IndoFX, Mandala Exchange.
- Tether (USDT)
If you’re looking to convert cash into digital currency then Tether would be what you’ll use. It’s a stable coin that was launched in 2014 and built upon open blockchain developments and technologies.
It has links to Fiat currency and it is controlled by Bitfinex. To maintain it’s price stability, it is linked to the US Dollars. You can buy Tether for trustworthy platforms like Paxful and Moonpay.
- Pax Dollar (USDP) Previously known as Paxos Standard
This popular stable coin is currently making headway in the crypto world. It is also decked to the US dollars value and it came into the market in 2019.
Pax tokens can be issued on an Ethereum blockchain. You can find Pax dollar on platforms like Binance and Bittrex.
- True USD (TUSD)
True USD was launched in 2018, in January Precisely. It was the first coin to be backed by US dollars. You can find it on crypto platforms like Binance, Mandala Exchange and Huobi Global.
The market capitalization of True USD is $1,202,550,953 USD (that comes to whooping 120 million), and 1,202,314,463 TUSD is its circulating supply.
True USD is the second most traded stable coin which is gaining immense popularity in the world of cryptocurrency.
- Pax Gold (PAXG)
Although Pax Gold is pegged to or backed by physical gold it’s built on the the Ethereum blockchain. Regardless ardof where you are in the world, you can trade with Pax Gold.
You can redeem your Pax Gold anytime, for either physical gold or fiat currencies.
A fraction of good delivery gold bars backs Single Pax tokens. The gold bar follows the London Bullion Market Association standard. You can find Pax tokens on Binance, Kraken and BitZ.
Choosing the right stablecoin for investment will be solely based on the investor’s choices; for long term investments the gold backed stablecoins are the appropriate choice, for earning short term lucrative returns investing in collateral based cryptocurrency is the right choice.
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