Cryptocurrency of Today: Top 10 Stablecoins 2022
Since 2009, when the first cryptocurrency, namely, Bitcoin, was introduced, the market has been welcoming more unique altcoins. The variety of discovered solutions depends on which encryption principles are preferred, how blockchain functions, and what correlations with micro and macro fluctuations take place. Well-known altcoins like Ethereum don’t guarantee stablecoins and predicted results in the long run — this market is prone to changes and alterations.
Since there is no centralized governance, such tokens feature extreme volatility. To prevent this and preserve the values of the crypto, stablecoins have been created. Keep on reading this article to answer this tricky question: what is the best stablecoin?
What Is Stablecoin?
Simply put, it is a type of cryptocurrency with peculiar features. The name is self-explanatory. Combining the best of both worlds, they can boast of their high-end security, rapid processing, and asset stability of fiat money. Their external value depends on outer conditions and is referred to as external references like US dollars.
Here are some leading features of stablecoins:
- Unlike traditional crypto tokens like Bitcoin, they are distinguished by their non-volatile and stable nature. This makes the ability to predict their fluctuations in the market possible.
- Thanks to their features, they can be easily applied as bridge tools between fiat money and typical cryptocurrencies with fewer regulations and decentralized performance. These coins are brilliant when it comes to protecting your assets from risks and fluctuations.
- They are bound to economic, social, and political indicators, yet appeal with their fake-proof and anti-theft potential.
- They provide a decent opportunity to maximize your introduction to the financial industry as a solo player.
Overall, there are three major categories of stablecoins:
- Fiat-collateralized — the most crowded and familiar division of stablecoins remains stable thanks to its outer connections with an exchange rate of fiat money.
- Crypto-collateralized — this version depends on the cryptocurrency protocols.
- Non-collateralized — in this case, there is no pegging to external references.
How to Use Stablecoins
Primarily, stablecoins are expected to function as typical money, enabling interested parties to proceed with real-life transactions. They are considered efficient tools for exchange and gambling, but these spheres don’t finish the list of their functional opportunities:
- Lending and staking are possible. With the best stablecoin staking services on such exchange third parties as ByBit, Binance, and Coincase, interested parties will be enabled to raise capital on such activities with safety in mind. The use of stablecoins deprives you of the necessity to pay exchange fees in several cases. But this conditions is better to double-check in advance, taking into account a certain platform and stablecoin.
- It is applied as an analog of fiat money with more favorable conditions for cross-border transactions. Such stablecoins are frequently the only available option to transfer funds without losses between individuals around the globe. There are fiat money options that are subjected to rapid inflation, and stablecoins are a great way to avoid this phenomenon’s risks.
- Users are welcome to purchase stablecoins anywhere and anytime, which increases their popularity among the un- and underbanked communities.
Top 10 Stablecoins
The most prominent solutions are applied for daily transactions and crypto trading. You can easily check their position in the market cap and track it in order to define what solution satisfies your prospective plans and available budget to invest in.
Tether (USDT)
As the first stablecoin in the world, it is definitely among the most recognizable payment options in the market. Founded back in 2014, it has become one of the best USD stablecoins. Its main purpose is to enable trading on crypto exchanges with favorable conditions for interested parties. Although the price fluctuates, it has become a perfect means to find out which stablecoin is best.
Dai (DAI)
There are numerous reasons why this best stablecoin 2022 is included on the list:
- It can boast of its extraordinary financial independence and efficiency to store savings.
- Aside from the obvious stability against volatility, this method of payment is characterized by low-cost maintenance for end users.
- It is backed up by 24/7 service assistance.
- It is based on the Ethereum blockchain and preserves its decentralized orientation.
TrueUSD (TUSD)
What’s the best stablecoin for security measures? This solution becomes an appropriate lifesaver. Its performance transparency comes hand in hand with innovative protocols to catch and fight back against fraudulent schemes. The operation of this best crypto stablecoin is tightened to the TrustToken platform.
Binance USD (BUSD)
If you desire a hassle-free investment process, selecting US dollar-backed options will be a wise choice — the results will be pretty predictable then. As the best stablecoin to use for newcomers, this service is aimed at increasing the operational speed of crypto transactions. Taking into account that this is a native solution of the same-named exchange, your digital assets will be tuned to its system.
TerraUSD (UST)
You will find the best DeFi for stablecoin of this kind, accessing borrowing, lending, and trading crypto tokens without difficulty. It is also popularized as a growth-driven network with the best crypto stablecoin interest in the industry, which results in a low-risk increase in digital assets.
USD Coin (USDC)
Established in 2018, it has turned out to be among the best stablecoin lending rates in the market cap. Among stablecoins, it lags behind Tether only in terms of its accessibility.
Pax Dollar (PAX)
Without a doubt, your crypto portfolio will be complemented by adding PAX assets. It allows tempering volatility. Based on the Ethereum blockchain network, Although it doesn’t provide the best stablecoin returns, the drops in its price are pretty insignificant. For instance, in twenty-four hours, the decrease can reach 0.07%, while the increase in the seven-day return will be about 0.34%.
Digital Gold Token (DGX)
The reason why this is the best stablecoin to invest in is as follows: unlike other solutions, it is pegged to the course of gold, namely, its value per gram. Compared to other stablecoins, it is a more volatile option (the cost of gold is more fluctuating). Its attraction to investors is based on the hard digital assets it can provide.
Neutrino USD (USDN)
Established in 2019, this financial tool is appreciated as the best stablecoin to earn interest in a highly secure manner. Staking with the right instruments is expected to result in annual profitability of up to six percent.
TRIBE
For those parties who desire to join an innovative market for lending activities, this coin will be suitable. It is a pretty safe option for beginners to find out how exchange and trading services function.
Conclusion
With secure transactions, low fees, and the benefits cryptography technologies offer, stablecoins are a great alternative to traditional payment solutions. Although they require particular experiences, their asset-backed nature simplifies entering the trading and exchange market for enthusiasts. Each stablecoin varietal is unique and can play a good role as an investment tool. By checking the best stablecoin interest rates, you will find your dream option smoother.
