What makes a particular crypto coin to be considered a stable coin? What is it's advantages as a stable coin? Can someone list a few stable coins?
Which cryoto coins are stable coins
- Thread starter Niyi Briggs
- Start date
At the moment I am still learning about crypto and which ones are the best to look into and which ones are better to avoid. At the moment the two that seem to be the stable ones and that are the most trustworthy ones are Bitcoin and Ethereum, that is about all I know at the moment in terms of any stable coins and ones that are more trusted.
- Thread starter
- #3
I heard that those ones you mentioned are not even stable coins. They are unstable.
It depends on how you look at stable. I myself look at stable as a way and means of being able to detect whether a certain coin is trustworthy enough and is stable enough for you to invest in and not lose too much. Bitcoin is one that has been around for the longest time and one I would class as stable in the term I would risk investing if I had the means. If you mean by stable in terms of how much it's worth. At the moment, no, neither of these coins is stable.
If a cryptocurrency is backed by a stable asset such as dollar, then I think that it would be considered a stable coin.
It is true that their values and the value of dollar are almost the same.
The stable coin are coins that have the same value with the dollar.
- Thread starter
- #12
I only know about USDT and that is the most popular stable coin. Stable coins are tethered with a high value asset so that it's value remains stable despite the shakings of the crypto market.
Stablecoin as the name implies means that its value will always be stable according to its supporters, which come from fiat money, gold or crypto itself. But there are also stablecoins that have no backers or stable coins without collateral because their value is supported by smart contract algorithms such as UST
Does that mean the stable coins that are not backed by anything would be subject to the volatility of the crypto market? What then is the basis of its stability. USDT is the only stable coin that I know though.
You are right, Stablecoins which are only supported by algorithms, only rely on smart contracts that manage the supply of tokens that are launched or issued, so to maintain price stability it is necessary to maintain the total supply of tokens, and stability is maintained centrally, so it is possible that prices will fluctuate.
It is very correct that they are the coins that are pegged against the dollar.
We have the same value as that of the USD and it's out of fluctuation as well.
Stablecoins are this crypto coins that are being pegged to the United States of Americas dollar as we have them in usdt, usdc, busd that are mostly used as a means of exchange between other crypto coin in equivalent to the dollar.
It is not only the dollar that is used to back up stable coins. Gold can also be used to backup a stable coin. But a stable coin is always backed up with a tangible asset.