๐ง And when to use them wisely in your trades?
In the volatile world of cryptocurrencies, many users are looking for a safe haven to preserve the value of their money. This is where stablecoins come into play ๐ผ
So what are stablecoins? And why do traders prefer them? What are the most famous types? Hereโs the simplified answer ๐
๐ค What are stablecoins?
These are cryptocurrencies designed to maintain a stable value often linked to the US dollar (USD),
For example: 1 USDT = 1 US dollar (approximately).
โ Its main advantages:
Reducing risks in a volatile market
Using them as a fast and low-cost transfer method
Protection against the decline in value of other cryptocurrencies
๐ The top 4 stablecoins you should know:
1. Tether (USDT)
๐ธ The most popular of all time
๐ธ Backed by cash reserves
๐ธ Supported on most platforms
๐น Currency symbol: USDT
2. USD Coin (USDC)
๐ธ Issued by Circle with greater transparency
๐ธ Widely used in decentralized finance (DeFi)
๐น Currency symbol: USDC
3. DAI
๐ธ Fully independent and decentralized
๐ธ Supported by smart contracts instead of direct dollars
๐ธ Issued by MakerDAO
๐น Currency symbol: DAI
4. True USD (TUSD)
๐ธ Associated with a transparent project backed by audit reports
๐ธ Available on multiple networks
๐น Currency symbol: TUSD
๐ When to use stablecoins?
๐ผ When quickly converting profits
๐ก๏ธ To protect against market fluctuations
๐ When transitioning between trades without withdrawing funds
๐ฐ When wanting to earn returns through Staking or Yield Farming
โ ๏ธ Note:
Not all stablecoins are equal in security and trust, so it's important to check their source and transparency before using them.
๐ Do you want to start using stablecoins?
Try trading or holding USDT or USDC through your Binance account now ๐
Discover stablecoins on Binance
