After the unpredictable highly-volatile Bitcoin ride, some investors want to invest in more stable cryptocurrencies. Welcome to stablecoins. As an alternative to regular cryptocurrencies, these are tokens backed by real assets. Stablecoins play an important role in the crypto ecosystem. The reason investors are increasingly investing in the best stablecoins is that they enable more people to take advantage of the benefits of the blockchain without the risk of massive fluctuations in the market, because Stablecoin is a type of cryptocurrency whose value is quite stable as it is pegged to a safe asset, for example, fiat currency or gold. Let’s look at the Four safest stablecoins you can invest in 2021.
Tether (USDT)
In theory, Tether is a peer-to-peer blockchain and an open source cryptocurrency. However, it is the safest stablecoin that has a value pegged to US dollars. In simple terms, the U.S Tether token is $1 all the time. The rope is the result of the combined strength of science and academia. Hence, if you notice that tether is not significantly affected by market fluctuations. Moreover, it is one of the popular stablecoins and is also very useful for transactions that often have difficulty when converting funds into US dollars. Unlike other cryptocurrencies, Tether has very few risky elements. Thus, it is considered a stable and safe cryptocurrency to buy. Seeing it from a different angle, tether is something you can buy and hold in cash or any other foreign currency.
Website: https://tether.to/
Current Price : US $ 1.00
True USD (TUSD)
It is the first regulated stablecoin backed by the US Dollar. It is known for its simplicity, transparency, and reliability as it doesn’t use any special algorithm. Introduced in early 2018, it is one of the best staking stablecoins that can connect with the next-gen and be held for a longer period of time. It was introduced to hedge against market volatility and create new opportunities for people to invest in True USD rather than Bitcoin or Ethereum.
Website: https://trueusd.com/
Current Price : US $ 1.00
Binance USD (BUSD)
Another stablecoin regulated by the US is Binance USD. Fully backed by the US dollar, Binance USD guarantees faster ways to fund your transactions and can be used as a medium of exchange. Moreover, you can even use it as a payment method in the global crypto space. It is approved and regulated by the New York State Department of Financial Services with the aim of ensuring the highest level of customer protection. Furthermore, users do not have to pay any fees when creating or redeeming BUSD. This project is announced by the No.1 cryptocurrency exchange in the world – Binance.
Website: https://www.binance.com/en/busd
Current Price : US $ 1.00
EuroT (EUT)
EuroT is the first Stable Coin project in the platform of TRX backed by Euro with staking and Swapping facilities in collaboration with prominent crypto-currencies like Etherium, Binance, Litecoin, and Tron. Euro is the official currency in the European Union where 28 forming member nations are under one roof of the EU. Europe is now the world's biggest cryptocurrency economy, with the continent receiving over €870 billion in crypto in the past year. Countries in central, northern, and Western Europe (CNWE) accounted for 25 percent of all global cryptocurrency activity, a new analysis by blockchain data firm Chainalysis found. So the Eurot has a very bright future since they have a unique project.
Website: https://www.eurot.org
Current Price : US $ 1.26
Stablecoins come in all shapes and sizes, but they all serve a single purpose; to provide stability. By providing stability in the cryptocurrency market, they’ve effectively invited those market participants who were once too shakey to enter the market due to excessive volatility. It’s also given investors, traders, and exchanges opportunities to have a ‘risk-off’ allocation within their cryptocurrency portfolio.
Stable coins also bring about the idea of backing cryptocurrencies to all kinds of assets. In this sense, stablecoins are really just a way to accurately price an asset through a decentralized marketplace, which may be the most efficient and trustworthy way to value any asset. That’s one powerful idea and shows a possible path stablecoins may take as well as their future siblings.