Cryptocurrency trading might be intermediating at first. However, the blockchain platform allows cryptocurrencies to function without the need for any central authority. Although the year 2020 was a memorable year due to the pandemic strike, 2021 looks like it could be the year when cryptocurrencies reach heights. With the highs and lows in the crypto sector, the rate of the coins keeps fluctuating. That’s when you need to hold some of the stablecoins which seem to have the most potential in 2021. As the stable nature of these crypto-assets makes them less appealing, nonetheless these stablecoins have the effective tools which help to bypass the unfavorable conditions of the market. Wondering what stablecoins actually mean? Let us discuss in detail the meaning and best stablecoins like Tether, USD coin, Dai, and many more in which you can invest in 2021.
What is Stablecoin?
A stablecoin is a stable valued cryptocurrency that is designed to have a fixed rate of exchange of their market value to some external reference like precious metals or industrial metals. Also, they offer stability, instant processing, and security while trading cryptocurrency.
The motive of using cryptocurrencies is to utilize and adapt them in daily monetary exchanges. Also, it should remain moderately stable over the long time horizons. Therefore, Stablecoins can be pegged to cryptocurrency, fiat money, or exchange-traded assets. Which in return benefits the cryptocurrency buyers, as they will be sure of its purchasing power tomorrow.
As per the market capitalization, we have shortlisted 5 Best Stablecoins that have high potential and you can invest in them.
Tether (USDT) $1.00
USTD, known as Tether, was initiated in 2014. Tether offers high security and continuous integration with crypto to fiat platforms. Now, USDT is updated to work on Ethereum, EOS, Tron, and Algorand blockchains. Also, Tether is actively working to update for having the best outcomes for the Blockchain platform. Currently, the USDT Market Cap ranking is at 3rd place having USD 62,446,167,480.
USD Coin (USDC) $1.00
This stablecoin issued in September 2018 by the two founding members, one being the payment service company called Circle and the other is the Coinbase cryptocurrency exchange. It is pegged to the U.S. dollar on a 1:1 basis, meaning that every unit of USD coin circulation is backed up by the $1 which is reserved. Currently, the USDC Market Cap ranking is 8th with a live market cap of USD 23,187,274,112.
Binance USD (BUSD) $1.00
Crypto exchange Binance also released a Binance USD, which is pegged 1:1 to the U.S. dollar. It plays an important role in transactions, payments, and Decentralised Finance (DeFi) based on its price stability. Currently, it is having the Coin Market Cap ranking at 16th place, with a live market cap of USD 9,583,958,219.
Dai (DAI) $1.00
This stable currency is based on Ethereum and its development is managed by the Marker protocol and Marker decentralized autonomous organization. Currently having the Coin market cap ranking at 25th place with a market capitalization of USD 4,909,821,368.
Paxos Standard (PAX) $1.00
This stable coin was established in September 2018. It is a flat-collateralized stablecoin that allows users to exchange USD for the PAX tokens. PAX tends to keep 1:1 parity with the U.S. dollar. It focuses on stabilizing the dollar with blockchain technology. PAX currently racked at 69th place as per the market cap and having USD 1,163,687,529.
So this year, these stable coins have great potential in terms of expanding their market capitalization and providing opportunities to crypto buyers for investing their money which can be utilized.
If you are someone who is keen to learn more about the backend process of the crypto and blockchain world, then you can learn and explore cryptocurrency certifications. Moreover, Being a cryptocurrency auditor can alleviate your career path to the next level. With the best courses available at Blockchain Council, start your crypto career today!