8 best stablecoins to buy in 2023 (2024)

Stablecoins have taken the world by storm, and they have the finest features of Fiat and cryptocurrency. As stablecoins are typically pegged to Fiat currencies, the prices are entirely predictable as they are not as volatile as cryptocurrencies. They make appropriate investment options. You must know that stablecoins are not linked to Fiat money ultimately. Even though the tokens are linked to some precious metals and other assets, they are used in various initiatives.

1. Tether

Tether is definitely among the most popular cryptocurrencies in today’s context, and also one of the best stablecoins you can buy this year. This is primarily because its price is correlated to the USD, and it is a dominant stablecoin when it comes to market capitalization. All the units are backed by U.S. dollars by the company that created the tether. However, the police remain entirely skeptical about the assertions.

2. USDC coin

USDC coin has entered the top five cryptocurrencies because of market capitalization. Fiat money reserves and U.S. Treasuries back the supply. One of the top cryptocurrency exchanges is Coinbase, so USDC would indeed be a wise investment for 2023.

3. True USD

True USD was launched in 2018, and it is a stable point that is tethered to the USD. The collateral is split among different bank accounts held by various trust corporations. Hence true USD has kept the USD and USD ratio at 1:1 for several years. It is one of the top 50 cryptocurrencies as per the market cap.

4. Binance USD (BUSD)

One of the most well-known stable coins is Binance, and it is tied to a ratio of 1:1. The cryptocurrency was initially created by Binance, and it is the most significant trading volume. The exchange rewards users of the branded currency and gives Binance USD a continuous and considerable boost.

5. Magic Internet Money

Magic Internet Money has a soft peg to the U.S. dollar. Abracadabra money is a decentralized crypto lending platform that unveiled this asset back in 2021 successfully. The cryptocurrency holds the $1 price, which is excellent, besides the sporadic minor price spikes.

6. Neutrino USD

Neutrino USD is one of the most prominently used algorithmic stablecoins. It has been one of the leading cryptocurrencies in terms of market capitalization since the start of 2023. Even though it did depreciate a little in 2022, the coin is actively traded even today. You can view the price reduction from $1 to $0.50, and it is a great pricing opportunity.

7. DAI

It is basically an Ethereum-based stablecoin that is pegged to the U.S. dollar, and it is a decentralized coin. It means that it is not tied to any government or central authority. MakerDAO regulates the currency, and it looks forward to maintaining a ratio of 1:1 against the USD.

8. Gemini Dollar

The Gemini dollar is one of the most regulated ERC 20 tokens that the U.S. dollar backs. It is entirely collateralized, meaning it is backed by the equivalent amount of USD that Germany holds. German dollar ensures that there is parity between the amount of GUSD in circulation and the amount of USD present in reserve.

Strategies you need to consider while investing in stablecoins

When it comes to investing in stablecoins, you can consider several strategies. The first is to just buy the coins and hold them for some time. This strategy is best for people who believe that the long-term prospect is positive for stablecoins and they can eventually get a good return on it. You can also use stablecoins to trade different cryptocurrencies. You can do this by exchanging your stable coins for another cryptocurrency on the crypto exchange. This strategy is profitable, provided the prices of cryptocurrencies being traded go in the right direction.

Wrap up

Stablecoins are one of the best ways to invest in cryptocurrency and make the most of the returns. With the ever-growing acceptance of cryptocurrencies, stablecoins have become entirely prominent among all investors as they offer a lot of stability and they also provide the potential for optimum yields, provided you choose the right one.

This content is for informational purposes only and should not be construed as financial advice.

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