A stablecoin refers to a cryptocurrency, which is backed up by a normal fiat currency or other valuable materials like oil, silver, gold, paper currency, and others in a certain proportion. Therefore, even in the time of extreme fluctuations in the crypto markets, the value of stablecoins largely remains stable and fixed.
Stablecoins maintain an exchange value to the proportion of 1:1 of the fiat money. In the United States, one unit of stablecoin is equal to 1-USD. However, not just USD, stablecoins can be tied to other currencies as well like Euro, GBP, Yuan, and others.
If you want to invest in the best stablecoin, please read ahead.
Popular Stablecoins of 2021
Digix Gold (DGX)
As its nomenclature says it all, DGX is backed by gold. Each DGX token is backed up by an equal amount of gold reserves linked to it. POA (Proof of Asset) technique is used for security reasons to verify its claim. DGX holders retain the right to encash their coupons/ tokens any time with real physical gold depending upon the token value they hold.
DGX has its own state-of-the-art repository in Singapore. Right now, more than two billion DGX tokens are available online for interested investors who want to invest in stablecoins.
Tether or USDT is now ranked as the world’s fifth most popular cryptocurrency by market share. Its market is around $70 billion worldwide. Tether has successfully integrated its platform with fiat currencies as well using blockchain mechanisms. Since 2018, it has always maintained itself as the best stablecoin.
The value of 1 Tether ranges from 90 cents to 1.10-USD. The bank of Hong Kong oversees the entire blockchain operation using advanced fintech systems and technological innovation. The bank publishes status reports of all necessary Tether transactions and relevant statistics for record and internal research purposes.
Utopia USD is one of the safest stablecoins in the market, which maintains a parity of 1:1 to a US dollar. Utopia USD maintains a peer-to-peer blockchain technology for transfer and payment, making it one of the most secured stablecoins in the market in 2021.
Utopia USD maintains its liquidity using an internal crypto exchange. It facilitates the quick conversion of all its coins into any hard currency. This is how Utopia USD maintains price stability in the market. All transactions made using Utopia USD remain anonymous and secure.
True USD (TUSD)
TUSD or True USD is another popular stablecoin in the crypto market. It was launched in 2018 and has continued to maintain its exchange value of 1:1 per dollar. It also runs on blockchain technology.
Under TUSD, all the money in circulation goes straightway to a highly secured trust, which is out of the hands of anyone, including the developers. So, whenever you transact using TUSD, all your money is fully safe and secured. However, TUSD holders can redeem their token anytime by making an online request to the admin. Such transfers are processed at the earliest depending upon the requirement of the customers.
USD Coin (USDC)
USDC has collaborated with two exchanges to withstand the volatility of crypto markets. Mostly, the price value of USDC remains stable throughout the year. It works on Ethereum blockchain technology. The USDC creators’ community tied up with financial organizations to keep a tab on all the latest updates from cryptocurrency markets.
Users can sign up on the website and complete some minimal documentation work to start using USDC for their digital transactions. The website offers a technically advanced authentication process for the safety of USDC members.
All the above-mentioned digital assets are stablecoins. They come with low volatility and even provide real exchange value at par with the current rate of 1-USD. Investors can plan their long-term investment by investing in stablecoins. These coins are not subjected to hyper fluctuations, which are quite common with other crypto assets.