The 10 Best Stablecoins To Hedge Against Crypto Volatility

Stablecoins are a type of cryptocurrency that is pegged to the value of another asset, such as gold or fiat currency. This means that stablecoins are less volatile than other cryptocurrencies.

Some people believe that stablecoins could be the answer to the current problems with cryptocurrency volatility. It is hoped that by stabilizing the price of cryptocurrencies, they will become more widely used in everyday transactions and not just for speculative purposes.

The cryptocurrency market is volatile, and it can be difficult to predict the price swings that happen. But stablecoins are a safer option to invest in.

Stablecoins are different from other cryptocurrencies because they have a fixed value. They are pegged to a stable asset like gold or fiat currencies like the US dollar. This means that they don’t experience any high spikes or dips in their value, which makes them a great choice for investors who want stability in their investments.

While this may not be ideal for those who want to make money off of volatility, it’s perfect for people who just want to use cryptocurrencies as an alternative form of payment without worrying about the price fluctuation on exchanges.

Market Cap: $80B

Tether is the first and most popular stablecoin in the crypto market.

It was founded in November 2014, and it is pegged to the US dollar. Tether does not have any geographical restrictions, so one can trade it on any cryptocurrency exchange that has USDT trading pairs.

The founders of Tether wanted to provide an alternative to fiat currency. The idea behind it was that people who wanted to avoid the volatility of Bitcoin could instead use a stable alternative like Tether.

The main benefit of Tether is that it can be used for trading cryptocurrency without having to worry about price volatility.

Market Cap: $52B

The US dollar coin, or USD Coin, is a cryptocurrency with a value pegged to the U.S. dollar. It was created by an organization called Centre, which is owned by Circle Internet Financial Ltd. and operates as a subsidiary of that company.

The goal of this cryptocurrency is to provide stability for those who are looking for a way to invest in crypto without the risk of losing their money due to volatility.

Market Cap: $18B

Binance is one of the largest cryptocurrency exchanges in the world, and its USD (Binance USD) is backed by a variety of fiat currencies.

The Binance USD was founded on July 14, 2017. It is a stablecoin that is pegged to the US dollar. The company has created this cryptocurrency to make it easier for traders to buy and sell cryptocurrencies without having to worry about changes in value due to market volatility. The Binance USD offers traders a reliable alternative to other cryptocurrencies that are not as stable.

Market Cap: $13B

TerraUSD is a stablecoin backed by physical assets. It was founded in 2018 and has already attracted a lot of attention from investors because of its benefits.

TerraUSD has been backed by physical assets all around the world in order to make sure that it’s stable. It is also backed by cash, gold, and other precious metals so that it can be more stable than the USD.

The founder of TerraUSD is trying to create an asset-backed currency that can be used for everyday transactions without the volatility that usually comes with cryptocurrencies.

Market Cap: $9.8B

Dai is built on the Ethereum blockchain and uses smart contracts to create a stable token. It is backed by collateral, which helps to ensure stability, and has been designed to minimize volatility. Dai’s decentralized governance system provides stability through transparency and accountability, which means that users can use Dai as an instrument for hedging against crypto market volatility.

Dai is a cryptocurrency that was created to be a stablecoin. It is backed by Ether, which is the cryptocurrency of Ethereum. Dai has a fixed value of one US dollar and can be used to purchase goods and services with no volatility risk.

Market Cap: $1.9B

Digix Gold Token (DGX) is the first ever tokenized gold on Ethereum. It is backed by physical gold and can be exchanged for physical gold. The token is a decentralized cryptocurrency that is built on the Ethereum blockchain. DGX tokens can be purchased in 1g increments, with each token being worth 1 gram of gold. This means that as the price of gold fluctuates, so will the value of DGX tokens in real-time.

The benefits of the Digix Gold Token (DGX) are many, but the most important one is that it offers a tangible and secure store of value. The price of gold has been on an upward trend for decades, and people who invest in DGX tokens know that they will always have something to show for their investment.

Market Cap: $1.4B

TrueUSD is a stablecoin backed by USD. It is one of the many stablecoins that have emerged in the past year. TrueUSD is unique because it was founded in 2018 and it has a legal framework to support the token.

TrueUSD is backed by USD and has all of the benefits of any other stablecoin, such as low volatility, price stability, and decentralization.

Market Cap: $947.8M

Pax Dollar (USDP) is a US-based cryptocurrency that aims to be the new standard for global payments. The Pax Dollar (USDP) is backed by USD and has a 1:1 exchange rate with the US dollar.

The coin was founded in 2017 by the Paxful team, who wanted to create an alternative currency that could help people avoid high transaction fees and poor exchange rates that come with using traditional currencies like the USD or EUR.

The benefit of Pax Dollar is that it does not have any transaction fees, which means users can send money to anyone without having to pay any hidden charges.

Market Cap: $553.4M

Neutrino USD (USDN) is a payment solution for the digital currency market. It is a cryptocurrency that has pretty good potential to be adopted by more businesses as it offers lower transaction fees and faster transactions.

The main benefit of Neutrino USD (USDN) is its low transaction fees. It charges just 0.1% per transaction, which is much lower than the 1% charged by credit cards and PayPal. This makes it a more attractive option for merchants who want to minimize their expenses while maximizing their profits.

The other major benefit of Neutrino USD (USDN) is its ability to provide instant transactions within seconds, which makes it perfect for online shopping as well as in-store purchases.

Market Cap: $422M

Fei is a blockchain-based USD that is backed by a reserve of real, physical USD. The company was founded in 2018 with the goal of helping people around the world access a safe and stable USD. Fei’s main benefit is that it provides an alternative to expensive international remittances and provides a transparent way to move money internationally.

Market Cap: $245.3M

Tribe is a cryptocurrency that was founded in 2018. It has a main benefit of privacy, which is why it’s called the “privacy coin.”

The founder of Tribe wanted to create an anonymous cryptocurrency that could be used for everyday transactions. The idea behind the coin was to create a currency that could be used without having to provide your personal information or identity.

Tribe is built on the privacy-centric Zcash protocol and has many features that make it private and secure.

There are two versions of Tribe: Basic and Advanced. The basic version is designed for daily transactions, while the advanced version caters to more experienced users who want more control over their funds.

Stablecoins are gaining momentum in the crypto world, but they do have some disadvantages.

The first disadvantage is that stablecoins are not as decentralized as other cryptocurrencies. The second disadvantage is that stablecoin projects can be abandoned if the company shuts down or goes out of business. The third disadvantage is that stablecoins are not secure from government intervention and manipulation.

I think the notion of a cryptocurrency being stable sounds almost too good to be true. If we’re already in this volatile market and all cryptocurrencies are going up and down in value, it would seem that frequent market moves would only worsen the matter and make all cryptocurrencies unstable. However, while it’s true that there is a degree of risk with all things, some level of stability must be present in order to have any sort of foothold in the financial world.

Therefore, before investing or using stablecoins, it’s important to review their features — if they’re backed or supported by loans or something else — as well as look at use cases where they were used effectively.

Thank you for reading my post. I hope you find it helpful. If you would like to take a deeper dive into the foundational concepts of crypto. Here are some of my favourite introductory books to get you started. They’re affiliate links, so if you decide to use them, I’ll earn a small commission at no additional cost to you. But in all honesty, I suggest these books because I believe they will be useful to you and are already a part of my library.