What are stable coins?

 What are stable coins?

A stable coin is a cryptocurrency that strives to provide price stability and is backed by reserve asset. Stablecoins have gained traction as they strive to offer the best of both worlds instant processing and security or privacy of crypto payments and stable non-volatile pricing of fiat currencies. In this article, we will discuss what stable coins are, why they have been created and who work on them.

Stablecoins (also known as pegged cryptocurrencies) have one main goal: to hold a value that is more stable than any other cryptocurrency. Stablecoins achieve price stability in one of two ways: fiat backing or collateralization. Examples of fiat-backed and collateralized stablecoins include Tether, TrueUSD, Circle USD Coin and Dai. Each aims to provide token-holders with a predictable amount of value.

Important of stable coin in the cryptocurrency 

What is a stable coin? The stability of cryptocurrency is essential to its adoption. Bitcoin, for example, fluctuates up to 20% in value each day. And while that's exciting if you’re looking to get rich quick, it’s terrifying if you need your cryptocurrency to remain stable and not lose or gain value. This is where stablecoins come in—they promise fiat-like stability through any market volatility.

Why invest in the stable cryptocurrency?

New investors often wonder, Why should I invest in a cryptocurrency that doesn’t fluctuate in value, if it’s not going to appreciate as quickly as Bitcoin or Ethereum? That question comes up because people who want to make quick money investing online see crypto as a way to get rich quick. While some investments do yield high rewards, they can also be extremely risky. Stablecoins aim to provide crypto-investors with an option that is safe and secure while still being able to generate profit. They have become popular among new investors and those looking for a better way to hedge against market volatility.

Diffrence between stable coin and cryptocurrency

Stable Coins There are four main types of Stable Coin.Fiat-backed: in which there is a 1:1 peg between crypto and fiat. This means that for every 1 dollar invested in Fiat, there is a 1 dollar worth of cryptocurrencies on top to ensure no volatility occurs from price movements or any other factors. For example, if you invest $100 USD worth of Tether into it, then your account will be credited with 100 Tethers. In order to cash out your investment you must withdraw your funds through selling on an exchange.

Are Stable coins a good investment in cryptocurrency?

Stablecoins can be a great asset in an investment portfolio, but they come with risks that investors need to understand. For example, if you choose to invest in Tether (USDT), one of most popularly used stablecoin, there is no guarantee that your crypto assets will remain backed by their respective fiat currency. On top of that, there have been concerns about Tether’s transparency and accountability. That’s why it's important to do your homework and thoroughly research any company you decide to work with.

How to make money with stable coin?

A new cryptocurrency, called a stable coin, is set to be launched. This is a cryptocurrency that strives to provide price stability and is backed by reserve asset. Stablecoins have gained traction as they strive to offer the best of both worlds instant processing and security or privacy of crypto payments and stable non-volatile pricing of fiat currencies. How do you make money with a stable coin ? You could earn when you get involved in launching or operating it. In addition , use it as an investment or storage tool with potential appreciation potential through scarcity if adoption increases (like gold).

The best stable coins list 

There is no official best cryptocurrency of 2018 list that is complete and comprehensive. While these rankings may not be 100% accurate, they’re likely to be very close. The currency rankings change over time as new cryptocurrencies come into play, old ones fade away, public opinion shifts and other factors come into play. These include: Market capitalization (the total value of all existing coins), number of trades made on exchanges, cryptographic algorithms used by a currency, etc... It’s important to remember that cryptocurrencies are constantly evolving - in addition to market forces - so you shouldn’t put too much weight behind these ratings. Instead, use them as a guide for what’s currently popular and trending. In our opinion, Tether will remain #1 for some time due to its low volatility compared to other cryptos. For those looking for more information about cryptocurrencies we recommend checking out our guides here: Guide To Cryptocurrencies And Blockchain Technology Guide To Investing In Cryptocurrencies Guide To Cryptocurrency Wallets Best Cryptocurrency Exchanges Best Bitcoin & Ethereum Wallets What Is Cryptocurrency Mining? What Is A Decentralized Application (Dapp)? What Is Proof Of Work Vs Proof Of Stake? How Does Blockchain Technology Work? How Do Smart Contracts Work? What Are Crypto Tokens? What Is An Initial Coin Offering (ICO)? What Is An Altcoin? What Are Crypto Futures Contracts? What Are Atomic Swaps And Cross-Chain Transactions? 

The best stable coins list

1:Tether     (USDT)

2:Dai        (DAI)

3:BinanceUSD (BUSD)

4:True USD   (TUSD)

5:USD Coin   (USDC)

6:TerraUSD   (UST)

7:Digix Gold Token (DGX)