Recommendations for choosing stablecoins based on goals:
1. For capital storage / low risk (Store of Value)
Goal: To preserve value, minimize risks
Recommended:
USDC — the best choice for reliability and regulatory compliance.
PYUSD — an alternative for those using PayPal infrastructure.
Not recommended: DAI, FRAX — due to complex structure and potential collateral fluctuations.
2. For trading and high liquidity
Goal: Quick movement between assets on exchanges
Recommended:
USDT — the most liquid, especially on international CEX.
USDC — works well on Coinbase, Kraken, and in the USA.
Advice: Keep some in each for flexibility between exchanges.
3. For use in DeFi (farming, staking, loans)
Goal: To earn through DeFi protocols
Recommended:
DAI — widely accepted in DeFi, decentralized.
USDC — supported by almost all DeFi protocols.
FRAX — interesting for advanced users in farming.
Caution with: USDT — not always accepted in DeFi protocols prioritizing transparency.
4. For international transfers and P2P
Goal: Quick and cheap movement of money
Recommended:
USDT (on Tron) — cheap and popular in developing countries.
USDC (on Solana/Polygon) — fast and low fees.