Are you using your stablecoins correctly?
Let me give you a quick data point so you’re not sold a cat for a hare
Not all stablecoins are the same, even though they are often grouped together. There are 3 key types:
1. Fiat-backed (like USDT or USDC) 🏦: supposedly have real backing in dollars in banks.
2. Crypto-collateralized (like DAI) 🔐: use other cryptos as collateral. More decentralized, but also more volatile.
3. Algorithmic (like Terra/LUNA) ⚙️: are kept “stable” with algorithms… until they stop being so.
What are they for?
To preserve value without leaving the crypto world, trade with less volatility 📉, and even pay for things 🛒. But beware! ⚠️ not all are equally safe or transparent.
Which one do you use? 🤔 Do you have a favorite or are you afraid of them?
I’m listening
