USDC vs USDT

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Estimated reading time: 2 minutes

The volume of the cryptocurrency market continues to grow, the popularity of digital assets does not decrease, and the interest of investors grows, but the risks, unfortunately, still remain. First, they are connected with the key feature of virtual currencies — the instability of the exchange rates and the high level of volatility.

However, there’s a way to minimize risks. And one of them is using stablecoins. Let’s discuss it today.

Risk Hedging

Stablecoins are digital coins backed by fiat money. The most striking example is trc20 USDT, which is actually a digital version of the American dollar based on the Tron blockchain. Tether combines the features of a virtual asset and the stability of a reserve currency, which leads to the absence of significant price fluctuations. Thus, USDT copes with the main problem of cryptocurrencies — high volatility. One of the most popular pairs is USDT EUR.

The Tether rate is stable and always around 1:1 USDT to USD. So, during the last year, the minimum price for one coin was $0,999, and the maximum price was $1,0115. It means that buying USDT is an excellent solution and a really profitable investment in conditions of increased volatility.

Briefly about Stablecoins

Here are some facts about stablecoins:

  • Stablecoins are fiat-backed digital coins with a fixed value. 
  • Stability. Stablecoin is a digital version of fiat money allowing conversion into virtual coins.
  • Stablecoins bridge the gap between cryptocurrencies and real money, and their main advantages are security, transparency, and stability.

There are many stablecoins, the biggest competitors are USDC vs USDT, but most users prefer the latter.

Wrapping up

Stablecoins appeared on the market to protect investors from the excessive volatility of cryptocurrencies and the unpredictability of the crypto market. Mainly, stablecoins are used in trade operations and financial transfers. It is much more convenient and cheaper than using fiat money or, for example, Bitcoin and Ethereum. In addition, stablecoins allow traders and investors to efficiently and profitably convert digital currencies and withdraw dollars to their USDT address.

Users do not need to convert cryptocurrencies to fiat, which means they can save on commissions. Also, with the help of stablecoins, crypto exchanges bypass the banking system’s restrictions, which apply to unregulated trading platforms.

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About Annabel Johnson

Part time gamer, reviewer and blogger. Full time geek and tech expert!

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