What Are Your Favorite Stablecoins?
When people get to know about cryptocurrency for the first time, they hear people talk about how volatile cryptos are. You turn your head and then look back at the price, the crypto price can change in that time.
If you like to hold the value of a coin stable, for the time being, people usually prefer Stablecoins. 1 Stablecoin is equal to $1. Well, it does not necessarily hold its value of exactly $1 but it is very close to $1.
When I first got to know about Stablecoins, USDT was my first choice. It holds the top position among Stablecoins. And if you do trading, you will get the most trading pairs with USDT. It is easy to use USDT and you can buy any crypto quickly. At the same time, you can sell your crypto and get out of it quickly.
After looking into the controversy around USDT, I changed my mind. USDT is not my favorite Stablecoin anymore. Tether (USDT) lost its market cap recently. On the flip side, USD Coin (USDC) market cap increases. Now, USDT's total market cap is $73 Billion whereas USDC's market cap is $53 Billion.
It seems algorithmic Stablecoins are better. The thing is, algorithmic Stablecoins find a hard time holding their peg at some point.
UST shows everyone how risky algorithmic Stablecoins can be. Holding Stablecoins is not risk-free. You see the price fluctuation in cryptos while Stablecoins prices are stable. As a matter of fact, it is not stable even though it holds its peg to $1. It is because the fiat currency is losing value due to inflation, and so are your Stablecoins.
Does that mean you should not hold Stablecoins? Stablecoins definitely has its use case. You can use Stablecoins to buy crypto when the price is low. You can do DCA and accumulate crypto over a period of time.
Having liquidity is very important. You can make any decision and execute that instantly when you have Stablecoins. I think it is good not to hold one Stablecoin. I have some HBD and other Stablecoins.
You should make your decision based on your goals, risk tolerance, and analysis. I can change my mind anytime based on the changing situation. Here I am sharing my opinions. This is not financial/legal advice. I will not be liable for your action.
Thank you for reading this post. Please feel free to leave your comments. That's it for now. I'll be back with another post.
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Posted Using LeoFinance Beta
I prefer HBD but I generally just do whatever stablecoin the exchange or platform is using. At least I don't really have that much of a preference.
Posted Using LeoFinance Beta
I also like HBD. That's why I hold some HBD. Hope I can buy HIVE with HBD later at a lower price.
Posted Using LeoFinance Beta
Well definitely not LUNA anyways!!
Yup, that's for sure.
Posted Using LeoFinance Beta
USDT is still very practical because it is in the main exchanges and in the main wallets. but since i mainly use binance and its network i currently use mainly BUSD.
HBDs are a great way to monetize more in the hive ecosystem
Posted Using LeoFinance Beta
You can get pairs of almost every crypto in exchanges with USDT. Considering the risk, I don't feel comfortable holding USDT. While I'm on Binance, I also use BUSD.
Thank you @jsvasquez1986 for your feedback!
Posted Using LeoFinance Beta
Well I might have to review my choice of stable coin from USDT that am familiar with to the HBD that I can save and earn passive income.
Posted Using LeoFinance Beta
In the beginning, I thought that USDT was a good one seeing it everywhere. Later, I realize I take more risks having USDT. In case I need to use USDT, I just do it quickly.
Stablecoins give a nice opportunity to earn passive income and at the same, it is not risk-free as we usually think.
Posted Using LeoFinance Beta
Exactly, I only use USDT for only quick immediate transactions.
Posted Using LeoFinance Beta
...It seems algorithmic Stablecoins are better..
How do you belief that stablecoin like USDT is realy backup for $1?
You cannot say for sure what they actually hold. They hold commercial paper, bonds, debt, and a little portion of dollars. And there is a lot of controversy around it.
Posted Using LeoFinance Beta
Crypto is crypto and there are and will always be risks.
Even with alleged 'stablecoins' there will be risks, but for me those risks are minimised the most in opinion with HBD, and that is my stablecoin of choice at the moment!
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We cannot eliminate the risk completely, but we can minimize the risk. And that makes a difference when you make financial decisions.
Posted Using LeoFinance Beta
Absolutely, it is all about risk mitigation, nail that and you are on the way to making great financial decisions!
Have a fantastic weekend:)
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