{"id":1299,"date":"2019-09-01T07:11:14","date_gmt":"2019-09-01T10:11:14","guid":{"rendered":"https:\/\/coinyze.com\/?p=1299"},"modified":"2019-09-01T07:11:14","modified_gmt":"2019-09-01T10:11:14","slug":"what-are-stablecoins-what-is-the-best-stablecoin","status":"publish","type":"post","link":"https:\/\/coinyze.com\/en\/o-que-sao-stablecoins-qual-e-a-melhor-stablecoin\/","title":{"rendered":"What is a stablecoin and what is it for? How does it work? \u2192 Top stable coins"},"content":{"rendered":"

In recent months, the cryptocurrency market has come up with a term called \u201cstablecoin\u201d or \u201cstable currency\u201d, with the aim of providing stability and security to the cryptocurrency market. So, what are stablecoins? Which is the best stablecoin and what are the characteristics that make them so popular in the Blockchain community?! All will be answered through the article below:<\/p>\n

What are stablecoins?<\/h2>\n
<\/div>\n

Stablecoins, also known as \u201cstable coins\u201d, refer to a cryptocurrency developed on the Blockchain platform with a stable value, which means that the prices of these stablecoins are tied to a type of asset. Fixed like gold or fiat currency (USD, EUR) makes it less volatile, decentralized and not controlled by the central bank or any organization.<\/p>\n

>>> Read Also:<\/b> Top: 5 Platforms to invest in Bitcoin<\/a><\/p>\n

What is the best stablecoin?<\/h2>\n

More and more stablecoins are appearing in the cryptocurrency market, such as TrueUSD, USD Coin, nUSD, etc., but Tether (USDT) is still the most popular stablecoin. It is used by best exchanges<\/a> as a trading market and more and more traders are using it as a \u201cstorm prevention\u201d method. USDT has an almost 1:1 conversion rate with USD (USD).<\/p>\n

Main features of stablecoins<\/h2>\n

Each stablecoin has different mechanisms and development processes, but they all must have the following four important properties:
\n*.Price stability (the most important factor)
\n*.Transparency
\n*.High security
\n*.The unit's reputation stands out for its conversion<\/p>\n

If a stablecoin does not possess one of the four features, it will not gain the trust of users or have credibility in the cryptocurrency market.<\/p>\n

Pros and cons of stablecoins<\/h2>\n

Advantages:<\/b>
\n1. The price is stable (the fluctuation range is less than 1%)<\/p>\n

\n2. A safe haven for traders when markets fall<\/p>\n

\n3. Increasing the development of virtual currency in reality<\/p>\n

Contras:<\/b><\/p>\n

\n1. Easily manipulate supply and manipulate the cryptocurrency market<\/p>\n

\n2. Users run the risk of not being supported by any property<\/p>\n

\n3. There is likely to be high volatility when there is bad news related to stablecoins<\/p>\n

\n4. Expensive for management, asset auditing<\/p>\n

Classification of stablecoins in the market<\/h2>\n

There are 3 types of stablecoins on the market, namely:<\/p>\n

\n-Stablecoins \u2013 debt assets:<\/b> \u2192 a form of debt asset issuance secured by a reputable intermediary, this intermediary will guarantee the conversion of 1 stablecoin into another asset at a fixed rate. For example: Tether Limited guarantees the exchange of USDT to USD at a ratio of 1:1
\nStablecoins t\u00edpicos: Tether, TrueUSD, USDC, Arccy.<\/p>\n

\n-Stablecoin \u2013 colateral \u2192<\/b> is the form of collateralization of another cryptocurrency on the Blockchain. For example, the BitShares exchange creates stablecoin bit.USD and must lock (collateralize) a corresponding amount of BTS.<\/p>\n

Stablecoins t\u00edpicas: BitShares, Maker, Havven, Sweetbridge, Augmint.<\/p>\n

-Stablecoins \u2013 no collateral \u2192<\/b> It is a currency without supply-demand regulation, it works by reducing prices to reduce supply to increase prices, when prices increase it will increase supply to reduce prices.<\/p>\n

Typical stablecoins: Basecoin, Carbon, Shards, Kowala.<\/p>\n

>>> Read Also:<\/b> Top: Sites to Earn Free Bitcoin<\/a><\/p>\n

Conclusion<\/h2>\n

We have just provided you with all the information about stablecoins that every investor needs to know. These stablecoins play a very important role in the cryptocurrency market, with a stable price that helps investors not to depend on fiat currencies and to convert to other virtual currencies such as BTC, ETH, XRP is fast. However, stablecoins still contain risks such as decentralization, which is easily controlled and manipulated by organizations.<\/p>","protected":false},"excerpt":{"rendered":"

In recent months, the cryptocurrency market has come up with a term called \u201cstablecoin\u201d or \u201cstable currency\u201d, with the aim of\u2026 <\/p>\n

Read more\u2026<\/a><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,2],"tags":[],"class_list":["post-1299","post","type-post","status-publish","format-standard","hentry","category-blockchain","category-dicas"],"_links":{"self":[{"href":"https:\/\/coinyze.com\/en\/wp-json\/wp\/v2\/posts\/1299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinyze.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinyze.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinyze.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinyze.com\/en\/wp-json\/wp\/v2\/comments?post=1299"}],"version-history":[{"count":0,"href":"https:\/\/coinyze.com\/en\/wp-json\/wp\/v2\/posts\/1299\/revisions"}],"wp:attachment":[{"href":"https:\/\/coinyze.com\/en\/wp-json\/wp\/v2\/media?parent=1299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinyze.com\/en\/wp-json\/wp\/v2\/categories?post=1299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinyze.com\/en\/wp-json\/wp\/v2\/tags?post=1299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}