Stablecoins (English stable – stable, coin – coin) are cryptocurrencies designed to minimize price volatility. This minimization of volatility in cryptocurrency rates (most often against the US dollar) indicates how much these stablecoins differ from more volatile cryptoassets, such as Bitcoin, which lack a built-in price stabilization mechanism.
The value of tokens is tied to the value of other digital assets. A crypto-backed stablecoin works in the same way as a fiat-backed stablecoin. However, instead of using fiat, cryptocurrency is blocked as collateral, with not one coin, but two. Thus, price fluctuations and risks are compensated. Today, stablecoins such as Tether are used by crypto traders to tackle volatility.
Of course, the stablecoins, the list of which we offer you, are not all projects of this kind, and there may well be coins that we do not consider here, but they seem interesting to you. If such a situation arises, then you just need to make sure that a sufficiently reputable organization with a good reputation is behind the coin.
About one stablecoin
How Gemini Dollar Works. The principle of operation of GUSD is extremely simple, which is an important factor for a stablecoin.
If you want to receive Gemini Dollar, you need to top up the balance of your account on the Gemini website with US dollars, and also indicate the address of the Ethereum wallet to which the tokens should come. After that, the specified amount in dollars is withdrawn from your account, GUSD is generated and sent to the specified wallet.
Withdrawing Gemini Dollars to USD is the opposite process. You deposit GUSD to your Gemini account, they are debited from the account and you receive an equivalent amount of dollars.
The Winklevoss brothers have developed a quick and convenient scheme for working with their stablecoin, which plays an important role for users.
How stablecoin works
Stablecoins provide the opportunity to take advantage of the benefits of digital currencies, including security, privacy, low fees and transparency, while helping to alleviate the extreme price volatility that most traditional cryptocurrencies face on the blockchain network.
Where to buy stablcoin
Stablecoins are traded on almost all crypto exchanges. You can buy tokens both for fiat and for any other cryptocurrency.
In the ratings compiled by our editors, you can choose a service for buying the safest stablecoin:
- Cryptocurrency exchanges;
- Electronic payment systems;
- Telegram bots;
- Cryptocurrency exchangers.
When choosing a suitable platform for yourself, first of all focus on its reliability and safety, commissions for exchange or purchase, user-friendliness of the interface, level of technical support.
TOP best stablecoins
For a better understanding, here is a list of stablecoins. TOP 3 includes:
- USD Coin is another project aimed at strengthening its position in the stablecoin market. It was released by the CENTER and Circle consortium, a fintech startup that acquired the Poloniex exchange in early 2018;
- Paxos (PAX) – This crypto token (also pegged to USD) is developed by the Paxos Trust Company. It is regulated by the NYS Department of Financial Services with extensive experience in mediating between fiat and digital assets.