What Are Your Favorite Stablecoins?
When people get to know about cryptocurrency for the first time, they hear people talk about how volatile cryptos are. You turn your head and then look back at the price, the crypto price can change in that time.
If you like to hold the value of a coin stable, for the time being, people usually prefer Stablecoins. 1 Stablecoin is equal to $1. Well, it does not necessarily hold its value of exactly $1 but it is very close to $1.
When I first got to know about Stablecoins, USDT was my first choice. It holds the top position among Stablecoins. And if you do trading, you will get the most trading pairs with USDT. It is easy to use USDT and you can buy any crypto quickly. At the same time, you can sell your crypto and get out of it quickly.
After looking into the controversy around USDT, I changed my mind. USDT is not my favorite Stablecoin anymore. Tether (USDT) lost its market cap recently. On the flip side, USD Coin (USDC) market cap increases. Now, USDT's total market cap is $73 Billion whereas USDC's market cap is $53 Billion.
It seems algorithmic Stablecoins are better. The thing is, algorithmic Stablecoins find a hard time holding their peg at some point.
UST shows everyone how risky algorithmic Stablecoins can be. Holding Stablecoins is not risk-free. You see the price fluctuation in cryptos while Stablecoins prices are stable. As a matter of fact, it is not stable even though it holds its peg to $1. It is because the fiat currency is losing value due to inflation, and so are your Stablecoins.
Does that mean you should not hold Stablecoins? Stablecoins definitely has its use case. You can use Stablecoins to buy crypto when the price is low. You can do DCA and accumulate crypto over a period of time.
Having liquidity is very important. You can make any decision and execute that instantly when you have Stablecoins. I think it is good not to hold one Stablecoin. I have some HBD and other Stablecoins.
You should make your decision based on your goals, risk tolerance, and analysis. I can change my mind anytime based on the changing situation. Here I am sharing my opinions. This is not financial/legal advice. I will not be liable for your action.
Thank you for reading this post. Please feel free to leave your comments. That's it for now. I'll be back with another post.
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Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about lifestyle, finance, martial arts, and digital marketing. I'm glad to meet amazing people all over the world.
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