🪙 Continuing with the previous post, I will elaborate a bit on the topic of stablecoins 🪙
⚖️ In the realm of cryptocurrencies, stablecoins allow for value preservation and transactions. That is, by maintaining currency peg, they ensure value stability during transactions. Here are some linked to the US dollar at a 1=1 ratio.
🎯 $USDT (Tether): One of the oldest and most popular stablecoins, backed by dollar reserves. Although it has been criticized for its lack of transparency, it remains widely used in trading.
🎯 $USDC (USD Coin): Also maintains a 1:1 peg with the dollar. It stands out for its transparency, as its reserves are held in regulated bank accounts and are audited by third parties.
🎯 $FDUSD (First Digital USD): A newer option that aims to be an alternative to other stablecoins, backed by dollar assets and supported by Binance, although its adoption is limited compared to USDT and USDC.
🎯 $USD1: Another stablecoin that seeks to maintain a 1:1 value with the dollar, although its backing and audits are less clear than those of USDC.
❓ What do I do?: $USDC stands out for its transparency and audits, which gives me more confidence. USDT, on the other hand, is the most used and has greater liquidity. So I keep the majority of my stable tokens in $USDC, to exchange for altcoins like $BTC , hold in Earn, etc. And I always keep a little liquidity in $USDT for specific and quick operations.
Kisses! 💜