It’s bear season among crypto assets. Top coins such as Bitcoin are more than 50% down from their highs as various global and economic factors weigh in on crypto assets. For those who invested at these coins’ peak, it must be disheartening to see losses piled up. Others who’re wondering whether to get into cryptos or not might be further dissuaded from dipping their toes in crypto.
What Are Stablecoins?
Stablecoins are digital currencies that are pegged to a stable and well-recognised reserve asset such as US Dollar or gold. They aren’t subject to wild fluctuations like other digital currencies that can swing in extremes as stablecoins have a stable peg to link their value to.
Therefore, by their very nature, stablecoins dramatically reduce volatility compared to digital currencies like Bitcoin. They are also better suited to everything from day-to-day commerce to making transfers between exchanges.
Stablecoins, therefore, are the perfect bridge between the traditional world of fiat currencies and the new world of digital currencies as they inherit the best of both worlds. Many people in the crypto world use stablecoins to transfer huge amounts of money with hardly any transfer fees, to earn interest from their coins and of course, to ensure that volatility doesn’t affect their balance sheet as much as having coins like Bitcoin or Ether would do.
Who Is It For?
Coins come with an inherent risk that can be difficult to justify to those who cannot stomach too much volatility. Thus, for more traditional and risk-averse investors investing in stablecoins is a no-brainer. Because stablecoins are part of the crypto blockchain, they can be moved quickly and without bank fees as compared to fiat currency, making them an even more attractive option.
Even pro crypto investors can look to keep part of their holdings in stablecoins to spread their assets across different types of coins and shield themselves from extreme volatility. Indeed, never put all your eggs in one basket is financial advice that never goes out of fashion.
A thorough study by ZebPay has led to the team adding some of the best stablecoins amongst 100+ crypto coins on their platform. If you’re wondering which ones to select from, we’ve compiled a list of some of the most well-known stablecoins that you can add to your portfolio right away. Have a look at these below and select as per your preference.
Top Stablecoins To Choose From –
Now that you know what stablecoins are and how they help you hedge against volatility, here are top ten of them that you can choose from to invest in.
Not to forget, you can also lend your stablecoins on the ZebPay platform and earn additional returns for simply HODLing them in your account at an attractive rate. Just another reason to pick up some stablecoins and expand your crypto portfolio and profits.
Here are the stablecoins you need to choose from.
Binance USD (BUSD)
BUSD exists on three different blockchains: Ethereum, Binance Smart Chain, and Binance Chain, making it one of the most accessible stablecoins that you can choose from. You can also swap your tokens between the chains as needed.
Tether is one of the most trusted stablecoins hosted on the Ethereum and Bitcoin blockchains. It is the first stablecoin founded in 2014 and the third biggest crypto asset with a market value just behind that of Bitcoin and Ether at about 80 billion USD.
USD Coin (USDC)
USD Coin was founded in 2018 and is the second largest stablecoin by market value at a market-cap approximately 50 billion currently. Founded alongside cryptocurrency exchange Coinbase, USDC is one of the most widely used coins by businesses looking to expand into the blockchain space, making it a reliable coin to invest in.
Pax Gold (PAXG)
Pax Gold is a digital asset that brings gold to the blockchain. If you’ve ever wanted to buy gold without worrying about it getting stolen or paying high fees to store it in a secure vault, PAXG is the new-age solution to owning the highest-quality gold without paying a fortune to keep it with you.
Digix Gold (DGX)
Digix Gold is another stablecoin pegged against physical gold. The Digix Distributed Autonomous Organisation stores gold reserves and pegs each DGX against one ounce of gold. This means, in effect you can cash out your DGX holdings in real physical gold bars depending on how many coins you hold.
True USD (TUSD)
True USD is one of the most transparent coins amongst stablecoins as its reserves are fully audited by Cohen & Co., a cryptocurrency audit and tax firm. TUSD has a market cap of more than $1.3 billion and growing.
Founded in December 2017, DAI has become one of the most valued stablecoins in the crypto market. Pegged to the US dollar as most stablecoins, DAI is backed by the Ethereum cryptocurrency. In effect, this makes DAI a crypto asset backed by another crypto asset with the assurance of a fiat currency.
Palladium Coin (XPD)
Palladium Coin is one of the most interesting stablecoins that pegs its value to palladium. The value of Palladium Coin is associated with the value of palladium. In addition, you can also own fractional palladium instead of an entire piece of palladium.
Gemini Dollar (GUSD)
Gemini Dollar is one of the few stablecoins to be recognised by a US regulatory agency, making it an excellent choice for future prospects. GUSD follows New York’s banking laws as well as the regulatory authority of the New York State Department of Financial Services. Gemini USD is also working on improving trust between traditional financial mechanisms and the blockchain ecosystem.
Neutrino USD (USDN)
Neutrino USD is an algorithm-based stablecoin whose crypto value is mimicked by the price of the US dollar. Neutrino is also sought after as it enables the creation of stablecoins pegged to specific real-world assets, such as national currencies or commodities.
If you’re wondering where you can invest in these stablecoins, we have the perfect solution for you. Simply open your account with ZebPay, India’s oldest and most trusted cryptocurrency exchange where you can invest in the stablecoin of your choice among 100+ coins. Take advantage of stablecoins and enter the world of crypto confidently with ZebPay. Open your account here.
This is a Partnered Post.
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