A stablecoin is a digital currency with a value that is pegged to a stable reserve asset.
For example, a national currency for financial instrument i.e US dollar or gold.
What makes stablecoins important?
Tired of making bad investment choices, stablecoins provide an alternative to the non-pegged or volatile cryptocurrencies. In other words, the value of stablecoins is pegged to a stable reserve asset; a national currency like a US Dollar or a financial instrument like gold.
What are the different types of stablecoins?
- Crypto-Collateralized stablecoins.
Pegged to or backed by other crypto currencies. The crypto currency value in reserves exceeds the value of stablecoins issued.
- Fiat-Collateralized stablecoins.
Maintain a reserve of a fiat currency such as a US Dollar or a precious material like gold.
- Algorithmic stablecoins.
The value may or may not be maintained by a reserve asset. The stablecoin maintains its value by controlling its supply though an algorithm. Can be related to a central bank.
What are the most valuable stablecoins?
According to Coin Market Cap, fiat-collateralized stablecoins such as USDT(Tether) and USDC (USD Coin) are ranked highest as the most valuable stablecoins, listed by Market capitalization.
Visit binusu.com now and choose from a number of different stablecoins for your next investment.
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