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Best Stablecoin to back your money
It is a type of cryptocurrency whose objective is to maintain a stable price.
Cryptocurrencies such as BTC, LTC, TRX, etc., tend to experience large fluctuations in their price because they are exposed to volatility processes, and this is where stablecoins fulfill a stability function.
Stablecoins seek to combine fiat money and cryptocurrencies, offering a cryptocurrency pegged to the price of fiat currencies. They can be used to store liquidity in cryptocurrency exchanges.
Another advantage is that they allow you to move your funds between exchanges faster and cheaper, avoiding paying high commissions. They are also used to send remittances abroad.
There are many stablecoins on the market, but the most important, or at least most used by people are the centralized ones USDT, USDC, BUSD, TUSD, most of the currencies have the acronym USD that represents the US dollar, since their objective is to replicate the price of the dollar.
What you should know about Theter USDT
Theher USDT was one of the first, it is one of the most stable and largest, created in 2015, and it remains to this day, one of the most used currencies in the crypto world.
Millions of dollars are moved in this currency every day, which puts it far above in terms of volume than any other. This is due to several reasons, such as its degree of adoption.
And it is that basically you can use USDT in any exchange to be able to buy or sell other cryptocurrencies.
Its enormous market capitalization also makes it a very liquid currency, which is why large institutions and traders prefer it, over other alternatives.
Of course, not everything is perfect, in the past there have been many controversies around it. For example, accusations about its guarantees with less than its market value, that is to say that it is a lie that the reversal of value in dollars is as great as the company claims.
Tether was initially launched as the ERC20 token of the Ethereum network, however today it also exists on almost any major network such as the Tron TRC20 network, the Binance BEP20 network, the Bitcoin Omni protocol, Algorand, Eos, etc. That is why it is easy to transfer value using this cryptocurrency.
Importance of USD COIN
One of Theher's biggest competitors is USD Coin (USDC), it is also a currency linked to the US dollar that works on the blockchains of Ethereum, Stellar, Algorand, Solana and Tron to name a few chains.
Behind this coin is a financial conglomerate made up of Circle, Bitmain, and Coinbase.
This stablecoin has seen significant growth since its launch in 2018; USDC is also backed by a reserve of fiat currency that is regularly audited and that in principle offer better guarantees than USDT, since Coinbase is one of the largest partners behind this currency, it has been able to benefit from its huge network of users.
USD Coin has grown rapidly and has become one of the largest stablecoins in the world.
Market capitalization already exceeds $25 billion. USDC is supported by many companies, products, and others, including digital wallets, exchanges, savings services, loans, and payments.
Back up your savings on Binance BUSD
Dollar savings provide better stability and are often the recommended option when protecting money from a local currency that depreciates due to inflation, however, depending on the area where you plan to buy, there may be factors that make it difficult to use, or access.
Among the wide variety of cryptocurrencies, there are stablecoins that do not have large price fluctuations, compared to other cryptocurrencies, and are not tied to a central bank.
One of its advantages is that it offers you a better savings plan, BUSD breaks the traditional savings plan by offering up to 8.50% annual interest when subscribing to savings with Binance Savings.
This is an ideal option for users who are not traders and who are only looking for a return in a long time.
BUSD protects you from market fluctuations, for users who are not familiar with cryptocurrencies, buying Stablecoin provides them with security.
The volatility of the cryptocurrency market that benefits many people are not a secret for everyone, but before entering this market, consider how the structure works by acquiring stablecoins in the process.
You can also use Stablecoin to freeze earnings from cryptocurrency exchanges like Bitcoin.
Most important characteristics of stablecoins as a safe haven for money
Stablecoin arose out of the need to control the extreme volatility of cryptocurrencies.
Cryptocurrencies are a very important economic revolution, but their reputation is very volatile. This volatility is related in many ways to speculation in the market.
The situation in which the cryptocurrency market is suffering continuous ups and downs, they generally use the collateral of another financial asset to achieve valuation stability, therefore, they seek to stabilize the value against different market conditions.
Among its greatest characteristics is that stablecoins are economically backed by real assets, especially those based on fiat currencies and commodities.
This turns the currency into a tangible asset backed by real value. You can trade these assets at the exchange rate and own the actual assets.
They provide great stability in their market value, but stability does not mean immutability, but the price of the stablecoin is unlikely to cause significant fluctuations in the price of cryptocurrencies.
These properties are highly valued by investors in this type of cryptocurrency. Thanks to tokenization, they provide excellent liquidity.
This is true when establishing commodity-based stability, as stablecoin provides more liquidity through better price formation.
