This season sees a bearish trend in crypto assets. Top coins such as Bitcoin are now down more than 50% from their peak prices, as various global and economic factors have had a negative impact on the crypto asset. Investors who bought these coins at high value are undoubtedly in the dark. And those who were still wondering whether to invest in crypto, may have decided to keep a safe distance from crypto.
What is a stablecoin?
Stablecoins are digital currencies that are relatively stable and pegged to well-known reserve assets such as the US dollar or gold. They don’t experience the same volatility as other digital assets, so even when conditions are bad, their prices don’t stop going down. Because the price of these stablecoins is pegged to something stable.
Because of this, the inherent volatility of stablecoins by nature is lower than that of digital currencies like Bitcoin. They are very useful for day to day trading and transfers between different exchanges.
Therefore, stablecoins can be said to bridge the gap between the world of traditional fiat currencies and the modern world of digital currencies, as they contain some of the best elements of both worlds. Most investors in the crypto world transfer large sums of money using stablecoins, which require almost no transfer fees. This results in higher dividends from the coin and, of course, the volatile nature of the market may not affect their balance sheet as much as Bitcoin or Ether can.
Who is it suitable for?
Every coin has some risk involved, so risk averse people don’t like it. For this reason, stablecoins are ideal alternatives for investors who want to invest in a traditional and risk-free manner. Because stablecoins are part of the crypto blockchain, they can be traded much faster than fiat currencies and require no bank fees, making them a much more attractive option.
Savvy crypto investors also favor keeping some of their holdings in stablecoins, as it allows them to spread their assets across a variety of coins and provides some protection from market fluctuations. But remember, never invest all in one sector – this advice for financial investing never gets old.
ZebPay’s team after long research found some great stablecoins and added them to the 100+ crypto coins on their platform. So if you’re worried about which stablecoin to invest in, here’s a great list of some of the world’s most famous stablecoins that you can safely add to your portfolio. Take a look at them below and choose as per your preference.
Choose from the best stablecoins
Now that you know what stablecoins are and how they can protect you from the volatile nature of the market, here is a list of the top ten from which you can choose the preferred option and start investing.
Don’t forget, you can lend your stablecoins on the ZebPay platform and earn extra returns at attractive rates just for holding them in your account. This is another great reason to choose stablecoins and besides, it will help you grow your crypto portfolio and profit.
Choose from these stablecoins below.
Binance USD (BUSD)
BUSD exists on three different blockchains: Ethereum, Binance Smart Chain, and Binance Chain, making it the most accessible stablecoin you can easily choose from. Not only that, you can conveniently move your tokens from one chain to another.
Tether is one of the most trusted stablecoins on the Ethereum and Bitcoin blockchains. It is the first stablecoin established in 2014 and is the third largest crypto asset, with a market value of around 80 billion USD, after Bitcoin and Ether.
USD Coin (USDC)
USD Coin was founded in 2018 and is the second largest stablecoin by market value, with a current market-cap of around 50 billion. It is founded on cryptocurrency exchange Coinbase. USDC is most commonly used by any business looking to expand into the blockchain space. This makes it one of the most reliable options to invest in.
Pax Gold (PAXG)
Pax Gold is a digital asset that combines gold with blockchain. If you want to buy gold without the fear of gold being stolen or paying huge fees to keep it in a safe vault, PAXG is the best solution. With this modern option you can buy the best quality gold but you don’t have to spend any money to keep it safe.
Digix Gold (DGX)
Digix Gold is another stablecoin, pegged to physical gold. The Digix Distributed Autonomous Organization stores gold reserves and pegs each DGX to an ounce weight of gold. This means, based on how many coins you have, DGX holds an equal amount of actual physical gold, which you can convert to cash.
True USD (TUSD)
True USD is one of the most transparent stablecoins, as its reserves are fully audited by Cohen & Company, a cryptocurrency audit and tax firm. TUSD’s market cap is over $1.3 billion and growing.
After its establishment in December 2017, DAI has now become one of the most valuable stablecoins in the crypto market. Like most stablecoins that are pegged to the US dollar, DAI is backed by the Ethereum cryptocurrency. In fact, DAI is a crypto-asset backed by another crypto-asset, thereby providing the same security as fiat currency.
Palladium Coin (XPD)
Palladium Coin is one of the most attractive stablecoins whose value is pegged to palladium. The value of palladium coins is completely tied to the price of palladium itself. Also, instead of buying a whole palladium you can buy it in small fractions.
Gemini Dollar (GUSD)
Gemini Dollar is one of the few stablecoins that have been recognized by US regulatory agencies, making it a viable option for the future. GUSD operates in compliance with New York’s banking laws, as well as the regulations of the New York State Department of Financial Services, a regulatory authority. Gemini USD plays an important role in building trust between traditional financial mechanisms and the blockchain ecosystem.
Neutrino USD (USDN)
Neutrino USD is an algorithm-based stablecoin whose crypto value mimics the value of the US dollar. Many like Neutrino because it helps create a stablecoin pegged to a specific real-world asset, such as a national currency or commodity.
Wondering how to invest in this stablecoin? Then rest assured, because we have brought the best solution for you. Open your account on ZebPay very easily. It is the oldest and most trusted cryptocurrency exchange in India, where you can choose your preferred stablecoin from among 100+ coins and invest in it. So take advantage of stablecoins and start investing in the crypto world with confidence with ZebPay.