5 Best Stablecoins To Start Your Crypto Investment in June 2024

Despite having no profiting outlook, stablecoins are part of every single investor, and there is more than one reason behind that. These are easily understandable by their name, Stablecoins, as in a comparatively stable cryptocurrency. As the other cryptos’ price keeps going up and down based on various factors, stablecoins are made by pegging their values to assets like the US Dollar or gold, offering better stability.

Why To Buy Stablecoins?

Stablecoins are the perfect cryptocurrencies for people who want to keep their money or transactions private from third parties. As they are stable, the users prefer to keep their money stored in them without handling the risk or price fluctuations. More importantly, it is the best medium to transact money internationally, as it won’t charge high transaction fees as the banks and transaction apps do.

Other than that, few DeFi apps and crypto exchanges require users to have stablecoins to buy the trading cryptocurrencies. The users can use stablecoins like fiat currency and trade them for desired crypto assets.

5 Best Stablecoin To Start Your Crypto Investment

Stablecoins have a huge share in the crypto market, and various platforms have launched their own, offering multiple options for investors. The combined market cap of Stablecoins is around $161.5 Billion, and trading volume of $64.4 Billion.

Additionally, there are various types of stablecoins based on their working methods and pegging. But despite that, they offer almost the same functionality. On that note, let us discuss the 5 best stablecoins that can be the perfect companion for your crypto investment this June.

1.Tether (USDT)

Tether was launched in 2014 and is the top stablecoin for its market cap of $112 Billion. More importantly, it is ranked 3rd on CoinmarketCap after Bitcoin and Ethereum, highlighting its demand in the market. Tether offers to peg to the various fiat cryptocurrencies, but the USDT pegged to the US dollar is the most powerful among these just the way the US dollar is among fiat. At the time of writing, the USDT price is equivalent to $0.993.

2.USDC (USDC)

USDC stablecoin is also pegged to the US dollar, but in its case, the ratio is 1:1, which means 1 USDC is equivalent to $1 all the time. Every USDC’s equivalent physical money (cash or US Treasury bonds) is stored in the reserve to ensure this ratio. It is the sixth biggest cryptocurrency in the market for its market cap of $32,376,024,662.

3.Dai (DAI)

DAI is an Ethereum-based stablecoin whose value is pegged to the US dollar. But Smart Contracts manage the value instead of storing it in physical money form in reserves. At the time of writing, the DAI price is $0.999 and has a market cap of $5,347,150,316, putting it in the 24th position in the market cap-based ranking of cryptocurrencies.

4.First Digital USD (FDUSD)

FDUSD is valued at $0.9983 and is ranked 38th for its market capitalization of $2,899,317,794. It is another example of stablecoin whose value is pegged to the US dollar for stability and security. This stablecoin can also be programmed for financial contracts, insurance, and escrow without involving any third parties.

5.USDD

Tron DAO is behind this USDD stablecoin, whose value is pegged to the US dollar. More importantly, it is backed by other cryptocurrencies like TRON, Bitcoin, and Ethereum instead of cash or smart contracts. And to do the Tron DAO ensures the storage of backing cryptocurrencies more than the USDD value. It is to ensure that the instability of backing cryptocurrencies does not affect the stablecoin. At the time of writing, 1 USD is equivalent to $0.9979 and has a market cap of $730,211,025.

The list continues, as hundreds of other stablecoins with different pegging and security promises also exist. The blog here concluded the five biggest and most popular stablecoins, which have a higher acceptance ratio and offer the utmost stability compared to the rest.

Continue Reading 5 Top Cryptos To Buy If You Are Building A Portfolio From Scratch

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