Stablecoins. Variety, purpose and how they differ from other cryptocurrencies

Stablecoins are a separate type of cryptocurrencies, which are usually called digital assets designed to minimize the impact of price volatility. Stable coins are also cryptocurrencies and use the same technology as well-known Bitcoin, Ethereum, Tether and others, and their difference from the previously named cryptocurrencies is that they are tied to a physical asset. These assets include cash, gold, natural resources, and real estate. The stability of the coin can only be guaranteed by the real security of this asset and there is no difference to which asset it is tied to.

To date , there are such basic types of stablecoins:

1. Backed by fiat. Each stablecoin is linked to a unit of fiat currency, for example, the US dollar, euro, yen, pound, whose reserves are most often held by a centralized entity. The advantages include stability and resistance to hacker attacks. The disadvantages are the regulation of national cryptocurrencies by the state, centralization, depreciation, default and other economic risks;
2. Backed by other cryptocurrencies. Ensuring a fixed rate by collateral in another cryptocurrency. The advantage is the convenience and simplicity when exchanging for other cryptocurrencies, there is no regulation by the state, decentralization. The disadvantages include low stability relative to traditional fiat money.
3. Nothing secured. Unsecured stable cryptocurrencies are completely decentralized and do not depend on other blockchain networks or fiat money. The advantage is the lack of a reserve to provide value and complete decentralization. The downside is the lack of stability and dependence on demand.

For quite a long time, the only stable was Tether, subsequently it had analogues, cryptocurrencies backed by the euro and the Japanese yen were also developed. And the libra stablecoin, known from the scandalous side, tied to USD caused a real panic among bankers and government officials of most developed countries of the world.

More than 4 years have passed since the creation of the first stable coin and more than 50 other stablecoins have already been created. We present to your attention the most popular stablecoins. The list is headed by projects with the largest market capitalization.

1. TetherUSDT. The largest coin currently pegged to the US dollar. The Tether cryptocurrency is on the 4th place of the CoinMarketCap rating. It is the most widely used stable coin with a capitalization of $10,960,402,629. The stablecoin supports the euro, and the issuer also plans to issue a Tether based on the Japanese yen;
2. TrueUSD. A stable cryptocurrency, the value of which is equivalent to the US dollar. The volume of its capitalization is slightly less than $ 100 million, and there are 192 669 521TUSD in circulation. You can purchase this crypto currency on the largest cryptocurrency exchanges such as Binance, Bithumb, HitBTC and others. The creators plan to use Trueuro, Truyen, TrueBond tokens as their asset to expand the range in the near future, this is in order to ensure stability in the rapidly changing world of cryptography;
3. EURS. The stablecoin was released in 2018, based on the Ethereum blockchain by the Stasis platform. In this case, the collateral is the euro. The market capitalization of the project is $34,928,161. To date, the total number of tokens is more than $12 million. The platform allows you to tokenize securities, real currencies, and other assets. The issuer is invited to use EURS for international payments;
4. DAI MakerDao. — ERC-20 standard token. A decentralized, collateral-regulated stablecoin pegged to USD, but the project has no fiat reserve. This token is guaranteed by Ethereum, and its value will always be $1, the capitalization is $81.48 million, the coin has all the possibilities for development. And in order to store, transfer and receive this cryptocurrency, it is enough to have an Ethereum wallet;
5. BitCNY BTS. — digital Chinese Yuan issued on the blockchain of the BitShares decentralized exchange. Each BTS coin is at any time equivalent to the value of the yuan and can be exchanged for it. In addition to the bitCNY stablecoin, developers have also issued similar cryptocurrencies backed by the US dollar (bitUSD) and euro (bitEUR). Crypto coins have the same functionality, the difference in providing different fiat currencies.

Stablecoin is a new convenient tool for calculations, the rate of which is tied to the price of the underlying asset, gaining momentum, trying to offer all the best from the world of crypto and realize the main task of "money of the XXI century", namely, instant processing, security and confidentiality of payments. The crypto community feels the need to use stablecoins and sees certain advantages in them.

To date, no one has managed to create a stablecoin that would gain universal recognition and popularity. The reason is that none of the created coins meets the high requirements for decentralization, security and the presence of a solid technical foundation. It is possible that over time, a crypto project will appear in the blockchain world that will meet all the requirements of a high-quality and promising stablecoin.

You can see the most profitable rate of stablecoins on the website coin24.com.ua. You can buy and sell stablecoins and exchange them for your own benefit. A referral system has been implemented on coin24.com.ua, you can earn by distributing a personal link to the exchanger among others who want to buy or sell cryptocurrency.

Recall, Capitalization of stablecoins grows by 300%, an anonymous trader predicts the growth of BTC to $540,000