The best stablecoins to invest in 2023 and why?

Best Stablecoins You can Invest in xbitcoin club app

In a year in which inflation has caused headaches in the world’s largest economies, many investors have chosen to shelter part of their capital in stablecoins . For this reason, we decided to make this guide with the best stablecoins to invest at this time and thus have a savings alternative.

Stablecoins are crypto currencies whose value is “tied” to that of another financial asset. Usually, this asset is usually the US dollar, although we also find stable currencies that simulate the price of the euro or the Japanese yen, for example. The objective of this strategy is to give the cryptocurrency tradersstable price : that is where it gets its name from.

These tokens are widely used in the payment of services and goods, in international commercial transactions (to unify currencies and have a reference) and as a long-term savings or value refuge mechanism. In a year where Spain exceeds 7% year-on-year inflation and the United States is close to 9%, the version of using these currencies as savings has taken on a lot of strength.

Let’s see then which are the best stablecoins to invest in !

🥇 STABLECOIN🎯 TOKEN
TetherUSDT
USD CoinUSDC
BinanceUSDBUSD
ICDICD
PAX DollarUSDP

Best stablecoins to invest

Can you first give us a suggestion? To buy stablecoins you have to have an account with a regulated broker that allows you to access a complete portfolio. 

Tether (USDT)

We start our list of the best stablecoins to invest with Tether , the most successful stablecoin . Created in 2014, the so-called “Tether dollar” or USDT has a market capitalization of almost 69 billion dollars and trades more than 56 billion USD daily.

Tether Stable coin to invest and trade it with xbitcoin club app

Tether is backed in the dollar currency : this means that for each Tether issued, the company behind the cryptocurrency must have one US dollar . While it is often disputed that this is so, so far Tether has managed to get around SEC audits and everything seems to indicate that it is a reliable stablecoin.

In addition to USDT, there are Euro-backed Tether coins and the Chinese Yuan. It is by 2022 the most used stablecoin in the world to make international payments.

USD Coin (USDC)

The second most chosen stablecoin in the world by cryptocurrency traders and investors is USDC ( USD Coin ). Created in 2018, it is Tether’s main competition in terms of volumes and reputation. As of October 2022, its market capitalization is nearly $44 billion and its daily trading volume amounts to $4.5 billion per day.

In the case of USDC , its commitment to financial security is to be observed and translates into the prestige it has gained within the universal crypto community. USD Coin is backed by the US dollar, and to maintain the 1:1 ratio, the company supports regular accounting audits.

USD Coin is widely used by private operators and by banking and financial institutions. Many experts claim that, from a technological point of view, it is noticeably better than Tether.

Binance USD (BUSD)

We continue with the best stablecoins to invest with Binance USD , the stablecoin of the most famous crypto exchangeBUSD has a market capitalization of 21 billion dollars and mobilizes more than 8 billion daily.

It is, as we mentioned, a stablecoin designed by the operator Binance, which was developed on the BSC ( Binance Smart Chain ) network. Thanks to this, it is optimal and efficient to operate internationally through very high-demand ecosystems such as PancakeSwap and the entire DeFi scaffolding of the BSC.

Binance USD also has, and not least, high sponsorship by the exchange, which encourages its use through a large number of plans, programs, and benefits. From liquid loans to access to restricted services, through credit and debit cards and cashback benefits , Binance USD remains in the game of being a strong bet to establish itself as the most used stable cryptocurrency in the world.

DAI (DAI)

DAI is a stable cryptocurrency created by the MakerDAO organization , so you may find it under that name on some exchanges and brokers. However, DAI is the most common nomenclature, usually.

It is an algorithmic stablecoin , therefore, its support is not given by the amount of US dollars held by the DAI issuing organization, but rather by the algorithm that runs the blockchain software . This, which sounds complex, is not so complex, but rather it is based on the simple Law of Supply and Demand: if the demand for DAI falls, the algorithm burns tokens so that the currency does not lose price. If demand increases, new tokens are issued to maintain the 1:1 parity ratio.

DAI was the first algorithmic stablecoin and, although many appeared later, it has been the only one that has managed to stay afloat and not only that, but it has become one of the fifteen most traded cryptocurrencies in the world. In October 2022, its market capitalization is 5.7 billion dollars and it mobilizes more than 400 million daily.

Pax Dollar (USDP)

We conclude our top 5 of the best stablecoins to invest with Pax Dollar (USDP), a currency that, although it is far in the ranking compared to the others, continues to be a widely used alternative for payments and international financial transactions. With a market capitalization of almost 895 million dollars and a daily volume of almost 23 million, it is ranked 60th in the cryptocurrency ranking of the prestigious CoinGecko portal .

Pax Dollar maintains a parity relationship with the US dollar , being its support based on reserves of the US currency. In fact, in this sense, Pax Dollar has a great advantage over its competitors, and that is that it is strongly committed to keeping its operation within the limits of formal US regulation.

Launched on the market in 2018, USDP has its own statute agreed with the New York State Department of Financial Services to “provide crypto services in a regulated manner ”. Behind the coin is a private company called the Paxos Trust Company whose reserves are regularly audited.

Conclusions

We have finished our review of the best stablecoins to invest. As we discussed at the beginning of the article, stablecoins have two main functions, for which they are in high demand:

  • They facilitate payments and financial transactions between economies of different currencies.
  • They allow maintaining the value of money , by adjusting with the price of the American dollar.

To access the aforementioned stablecoins, it is best to use the services of a regulated platform that ensures that we are operating in a safe and legal environment. And, on the other hand, that it provides us with wallet services, since this would simplify the storage operation and, therefore, the costs.