Gone are the days when people preferred spending on properties like plots, buildings, and gold. Cryptocurrencies are the new buzz of town now. With a wide range of options available, you can choose your desired investment option considering the risks associated in terms of the fluctuation of prices of these currencies.
However, if you are not inclined towards taking higher risks, there are various stable coins available in the market for you to invest in. If you do not already know, stable coins refer to the type of cryptocurrency linked to an asset such as the US dollar, whose value does not fluctuate much.
Stable coins were initially used to purchase other cryptocurrencies such as bitcoin because many cryptocurrency exchanges did not have access to traditional banking. They are more valuable than country-issued currencies because they can be used anywhere in the world, 7 days a week, 24 hours a day– without relying on banks. Money transfers are completed in a matter of seconds.
Concerned that stable coins could pose risks to the financial system, regulators have recently shown increased interest in them. If you are searching for stable coin options to invest in 2021, you are at the right place. Listed below are some of the stable coins that you can invest in 2021:
Tops our list is Tether, which goes by the symbol of USTD. It is amongst the most popular stable coins. Tether was created with an intention to maintain a value of $1.00 by keeping $1.00 in reserves. The relationship of this coin with the US dollar is what makes it "stable." Using Tether, customers can easily maintain track of their investments because they can be converted easily into other assets without first converting them into Bitcoins.
Next on our list is Goldcoin. Just as Tether is backed up by USD, Goldcoins are backed up by gold that runs on a network of Ethereum. It allows you to purchase and hold the asset using cryptocurrency. Goldcoin can now be used to send you genuine bullion. This, however, requires the disclosure of your identity, which may deter some investors. Alternatively, you can use this stable coin to purchase gold anonymously.
Paxos Standard is another stable coin currency that is backed by the US dollar and maintains a 1:1 exchange rate with the US dollar.
Paxos Standard Token was made as a side project to Tether, formed in response to the printing incident of Tether in which Tether was rebuked for claiming to have over 1.8 billion in Deltec Bank & Trust Ltd. bank account to back its stable coin.
The asset is also supported by the US dollar, which is held in government-controlled treasuries.
True USD (also written "TrueUSD") is a stable coin that is 100 percent backed by the US dollar and one of the most liquid on the market. Compared to fiat currency wire transfers, cryptocurrency has lower transaction fees and higher interest rates on held balances.
When TrustToken's chosen partner banks are paid, TrueUSD units are created. Cohen & Co., a U.S.-licensed accounting firm, regularly attest to the sufficiency of the deposits. TrueUSDs are deposited in escrow arrangements to provide the TrueUSD holder with a legally clear claim on the dollar deposits.
Binance, to not be surpassed, has also launched a Binance USD that is pegged at 1:1 to the US dollar. These are digitized US dollars that are always bought and sold at a rate of one BUSD for one USD. Binance and Paxos do not charge fees to buy or sell Binance USD (BUSD), but bank and wire fees may apply.
With ERC-20 and BEP-2 support, you may send money anywhere in minutes for a low fee and on the blockchain.
Designed with an aim to bridge the gap among digital asset and fiat currency worlds, stable coins allow investors and users to have their cake and devour it too. Stable coins provide decreased volatility blended with the benefits of blockchain technology, including decentralized, anonymous, and secure payment systems of cryptocurrencies. Listed above are some of the stable coins that are making their mark in the year 2021 and are ideal to invest in. If you have any queries or think that we have missed out on some of the most important stable coins, feel free to let us know in the comments section below.