Crypto crash is one of the issues with a c this crypto investment that made it the riskiest form of investment today.
The year 2022 has so far witnessed a meltdown in the crypto world with the prices of crypto assets going down. Terra’s collapse in May shook the crypto market. Despite this market downturn, a category of cryptocurrency known as Stablecoins has been unfazed.
Stablecoins are largely unaffected by the volatile nature of other cryptocurrencies. There are a lot of stablecoin projects today that you can invest in to beat the crypto crash.
In this post, we’ll look at the top stablecoins to beat the crypto crash. For the sake of beginners, let’s know more about stablecoins.
What are Stablecoins?
Stablecoins are cryptocurrencies pegged to external assets. They may be tied to fiat currencies, precious metals like gold, or other crypto assets. They also maintain a reserve of the asset they’re tied to.
They are called stablecoins because they have stable prices unlike other cryptos like Bitcoin, Ethereum, etc. Stablecoins pegged to fiat currencies such as the USD are tied on a 1:1 ratio.
There are several stablecoin projects to invest in today. Investors can buy these stablecoins on exchanges.
Top 5 Stablecoins to Beat Crypto Crash
There are several stablecoins listed on Coinmarketcap. The top 5 listed by Coinmarketcap can help to beat the crypto crash. They are discussed below in the order of their market cap.
1. USDT
USDT is the largest stablecoin and the third-largest crypto today. USDT is launched in 2014 by the Tether company. As of writing, the market cap of Tether (USDT) is $69 billion.
Tether (USDT) is tied to the US dollar on a 1:1 ratio. While many crypto assets are reaching their all-time lows, the USDT price remains unchanged at $1.
USDT claims to have cash reserves and equivalents to back every USDT available in the market. Although this has been debated, the company has backed up its claims.
2. USDC
USD coin (USDC) follows USDT as one of the most valuable stablecoins today. USDC is launched in 2018 by the crypto exchange platform, Coinbase, and Circle. It is ranked 5th among thousands of crypto assets by coinmarketcap.
USDC is tied on a 1:1 ratio to the USD like USDT. As of this writing, USDC has a market cap of $43 billion.
This stablecoin claims to have cash reserves and equivalents (including US treasuries) to back every USD coin circulating worldwide.
3. BUSD
Binance USD (BUSD) is another top stablecoin you can get to beat the crypto crashes. This stablecoin launched by Binance, the largest crypto exchange globally has a market cap of $21 billion today.
BUSD is the 7th largest crypto today; three places below another Binance token, BNB. BUSD also has a value of 1-to-1 tied to USD. BUSD has attracted many investors as its charges are relatively low when bought or sold.
4. DAI
DAI is an Ethereum-based stablecoin which makes it different from others. It was launched by Maker Protocol and the MakerDAO decentralized autonomous organization. As of writing, the market cap of DAI is $6 billion.
Holders of DAI asides from being able to beat the crypto crash, are also involved in its governance as a DAO. This makes it one to get for investors.
5. TrueUSD
TrueUSD (TUSD) is a U.S. dollar stablecoin pegged to the fiat currency, USD at 1:1. TUSD is launched in January 2018 by TrustToken, a platform for tokenizing real-world assets.
TUSD aims to facilitate increased liquidity and provide cryptocurrency traders and general users with a nonvolatile asset relative to free-floating tokens such as Bitcoin (BTC).
This stablecoin is currently ranked 58th among other crypto assets. As of this writing, the market cap of TUSD is $818 million.
Where to Trade Top Stablecoins
The top stablecoins today are available on crypto exchange platforms such as Binance, Coinbase, Kraken, and so on.
USDT is available on several exchanges worldwide. USDC can be purchased on the Coinbase platform as well as on other exchanges. BUSD is available on Binance, the largest crypto exchange in the world.
Closing Thoughts
Stablecoins are the only categories of crypto that can beat the crypto crash. They are tied to external assets which makes them different from other cryptocurrencies. With this, we’ve come to the end of the video for
