What is the safest stablecoin?
First, it is important to know that stablecoin
Coins designed to remain at a stable price,
Backed by assets that remain stable, in order to protect investors from market fluctuations
One of the factors that makes stablecoins safe
They are the assets that support the currency, (backed by the US dollar at a ratio of 1:1)
There is also a factor of transparency in reports and proof of reserves.
The three largest stablecoins
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USDT
USDC
FDUSD
For a currency
Usdt
It is considered the least safe, due to tampering and lack of transparency in reserve proof reports.
Although it is the most popular currency
As for FDUSD
It is safe and organized
But it is not very widespread
As for USDC
On the theoretical side
It is considered the best and safest currency
But what happened about a year ago when it broke its peg to the dollar due to the collapse of SVB Bank, which had $3 billion in USDC reserves.
It makes us doubt her and her incompetence.
But from my personal point of view, there was panic from investors and strong selling pressure on it, which caused it to lose its connection to the dollar
Bottom line
No stable currency is 100% safe.
Each unit has weaknesses
A smart investor is one who does not put all his eggs in one basket
Warning: This article is for educational purposes only, and does not contain any investment advice
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