Stablecoins are cryptocurrencies with a stable exchange rate, usually pegged 1:1 to the dollar.
But the word 'stable' does not mean 'reliable'.
The main difference between coins is what they are backed by and how transparent the company that issues them is.
Stable is not about earning. It's about preserving money without volatility.
Thus, when choosing, the most important thing is minimum risk, maximum stability.
🔑 What to look for when choosing a stablecoin
Main criteria:
1️⃣ Collateral (what real assets back the coin)
2️⃣ Transparency and audits
3️⃣ Liquidity and exchange support
4️⃣ Issuer reputation
5️⃣ Stability of the peg 1:1
6️⃣ Regulation / possibility of legal control
Stable must primarily preserve money, not promise cosmic percentages.
📌 Stables from least risky to most risky
🟢 Lowest risk — suitable for long-term storage / financial cushion
USDC, USDP, TUSD
• Fiat collateral
• Regular audits and reports
• Stable peg to $1
• High reputation and predictability
→ Chosen for reserves, Earn, long-term storage
🟡 Balance of risk and stability — suitable if liquidity is important
USDT, FDUSD, DAI
• USDT — largest liquidity in the world, but less transparency of reserves
• FDUSD — popular on certain exchanges, but younger and less known
• DAI — decentralized, backed by other crypto assets (risk of reserve drop during crises)
→ Can be used, but not as a single stablecoin
🟠 Increased risk — use only with deep understanding
USDe, USD1, XUSD
• Insufficiently understood collateral mechanisms
• Less liquidity and less time-tested
• Significant dependence on the issuer and market conditions
→ Suitable for experiments, but not for reserves
🔴 High risk — not recommended for long-term storage
BFUSD, RWUSD, AEUR, EURI
• Very low or narrow liquidity
• Limited information about reserves or their absence
• Unknown or weak issuers
• Potential risk of losing the peg 1:1
→ Not suitable for financial reserves or savings
🧭 Simple choice rule
Stable must not answer the questions:
> “Where will I earn more %?”
and to the question:
“Where will I risk my money the least?”
If the coin: ✔️ has real reserves
✔️ regularly reports
✔️ easily exchangeable
✔️ holds $1 steadily
→ this is a good stable for preservation
If at least one point is in question — the risk increases.
🔥 Summary for those who want to accumulate
The smartest strategy for “reserves / long-term / Earn” looks like this:
1️⃣ Main stablecoin → USDC
2️⃣ Second for diversification → USDP or TUSD
3️⃣ Small share when liquidity is desired → USDT
4️⃣ Everything else → only if you are aware of the risks
Remember: the purpose of the reserves is protection, not risky earnings.
💰 Advantages and disadvantages of each stablecoin
🔹 USDT (Tether)
Advantages: largest liquidity in the world, supported on all exchanges, fast transfers, convenient for trading.
Disadvantages: lower transparency of reserves; there were disputes regarding the audit; the structure of reserves partially includes risky assets; regulatory pressure in the future is possible.
🔹 USDC (USD Coin)
Advantages: 100% collateral with highly liquid assets; regular audits; high transparency; strong reputation; stable peg of $1.
Disadvantages: centralized; depends on American regulators; possible blocking of addresses in emergencies.
🔹 USDe
Advantages: potential opportunities in DeFi; may offer attractive conditions in some ecosystems; an alternative to “big” stables.
Disadvantages: low liquidity; little verified information about reserves; new and untested over time; risk of losing the peg.
🔹 USDP (Pax Dollar)
Advantages: very high transparency; fiat collateral; regular reports; legal regulation in the USA; low risk.
Disadvantages: lower liquidity than USDT/USDC; fewer trading pairs; not as active in DeFi.
🔹 USD1
Advantages: possibility as an alternative stable; may have attractive offers in certain projects.
Disadvantages: low liquidity; minimal information about the issuer and reserves; weak adoption on exchanges; high risk of delisting.
🔹 FDUSD
Advantages: good integration with Binance; sometimes high rates in Earn; active ecosystem.
Disadvantages: new and untested over time; liquidity mainly depends on Binance; reputation is not yet established.
🔹 BFUSD
Advantages: sometimes offers attractive APY in small ecosystems.
Disadvantages: very low liquidity; almost no verified data on reserves; high probability of risks/delisting; opaque issuer.
🔹 RWUSD
Advantages: may be useful in niche or local projects.
Disadvantages: minimal liquidity; almost no major exchanges; unknown/opaque issuer; high risk of losing the peg.
🔹 TUSD (TrueUSD)
Advantages: fiat collateral in escrow accounts; regular independent audits; good stability of the peg; suitable for reserves.
Disadvantages: lower liquidity than USDT/USDC; weaker integration into DeFi; fewer trading pairs.
🔹 XUSD
Advantages: sometimes offers interesting interest programs in certain projects.
Disadvantages: low liquidity; lack of global reputation; little information about collateral; potentially risky.
🔹 AEUR
Advantages: stable pegged to the euro, may be useful if you don’t want a peg to the dollar.
Disadvantages: low liquidity; weak presence on exchanges; minimal information about reserves; risk of losing the peg.
🔹 EURI
Advantages: also focused on the European market and peg to €1.
Disadvantages: critically low liquidity; unknown issuer; lack of transparent audits and guarantees; high risk of devaluation.
🔹 DAI
Advantages: decentralized; not dependent on banks or a single company; well integrated into DeFi; time-tested.
Disadvantages: collateral with crypto assets → depends on market volatility; smart contract risks; not as ‘rock solid’ for reserves as fiat-stables.