As the name mentions it is self-explanatory, these coins are very safe and wise to purchase currently. For the past few days the crypto market has been falling due to some factors and investors are losing the value of their money stored in the crypto wallets.
Safe haven of the crypto world
For years now United States dollar has always been the safe haven when other currencies are fast losing their values, investors sell-off their currencies and purchase the greenback and when the greenback is falling people would opt to buy gold and it was it was their safe haven but things are different now.
Currently we are living in the world of crypto currencies and they are dominating financial markets and are now the preferred safe haven and better investment option but those crypto can also be under siege and they will lose value as well, but it is not a dead end their might savior was created a few years back.
Stable coins. These coins when they came the crypto market was a well-balanced market as there was now were to run when things go bad. Almost every crypto currency is traded against bitcoin as the quote currency so when the bitcoin is falling the base currency is supposed to be rising but bitcoin is the giant crypto and it doesn’t go down alone it drags the other currencies with it on its way down.
With stable coins it’s a different case because it was designed for defense mechanism as a safe haven, it has so much great features which make it a better token. They reduce volatility in the crypto market as they are not volatile.
What could be the reason for less volatility with stable coins?
These coins are backed by crypto assets, commodities, traditional currencies and collaterals so the number of coins in circulation is equivalent to the value of assets which back them and also these coins are mostly pegged at $1 and they always maintain their price which makes it the best token at the moment.
With it you will not lose the value of your money, but keep in mind these tokens are not for profit making as they don’t move much they are just for safe keeping the value of your money. There are a lot of them you can chose any you like, e.g. Tether, Dai Paxos and many more.
What to look at when selecting them
Always check their age as the oldest stable coin is the most stable one and check the company behind those tokens, and always check their current market capitalization as this shows the level of adoption of each token.
