Hello!

I did a quick research about Stablecoins. I want to know which is the safest crypto to store value if I don't want to convert it to fiat. Many will say that the best crypto to store value is Bitcoin itself, but I want to store the value when I trade and sell Bitcoin.

Actually I am sitting with some cash as I am expecting to get in the market again at lower levels, but I would love to hear your experience about Stablecoins. The Stablecoins usually are backed with the same quantity in $ dollars, but there are some "collaterized" ones that offer different alternatives.

Source

1 - Tether (USDT) - The king

Tether (USDT) is the most used Stablecoin in the space. The cryptocurrency is sitting at the 3rd position with $9,000,000,000 (9 Bilion dollars) just before Bitcoin and Ethereum. While there are a lot of fraud allegations if you search on the Internet, this Stablecoin remains the market leader. There are a lot of market pairs that use USDT in almost all of the Exchanges, maybe because it was the first, but this also reflects the confidence of the market. I have been looking to their website and I found this section where they show their balance. The section is called Transparency. I am not convinced at all with the look of this website but they say that:

All tethers are backed 100% by Tether's reserves.

I have also found a richlist where I can see the name of some of the best Exchanges:

Updated: May 25

What I don't like is that there is a huge quantity of warning signals surrounding Tether, and on their own website they also say that each Tether is not backed 100% with real dollars:

Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Every tether is also 1-to-1 pegged to the dollar, so 1 USD₮ is always valued by Tether at 1 USD.

USD Coin (USDC)

It is managed by Coinbase, one of the best exchanges in the world, specially for US citizens. It is also managed by Circle (Which I don't know what this company does). It seems a really reliable project, they are being audited by Grant Thornton LLP, and they put the information on their website, see the Reports.

Paxos Standard Token (PAX)

Paxos is a Stablecoin that runs on Ethereum, it is an ERC-20 token. What I found surprising is that they are being audited by Withum every month, if you want to see the reports you can do it here Attestations.

Other options available by market value

There are just 3 Stablecoins that are between the TOP 50. From my point of view I think that the smartest move will be to move between this 3. However there are some that I think are well positioned to gain importance in the market. There are the following:

• 51 - Binance USD (BUSD)
• 58 - TrueUSD (TUSD)
• 60 - DAI
• 62 - HUSD

Other micro-market options are the following:

• Hive backed dollars (HBD)
• Gemini (GUSD)
• StableUSD (USDS)
• Reserve (RSV) stablecoin
• Bitshares (BitUSD) Stablecoin
• EOSDT: A framework for stablecoins

I think that there are a lot to learn about Stablecoins and I will definitely dedicate time to do so. I think it is a really good move if you want to play the trading crypto game.

Enjoy! 😊