Stablecoins are a bunch of cryptocurrencies that are playing an extremely influential role in the rising institutional adoption of cryptocurrencies. They defend investors with a stable exchange rate against FIAT currencies. Their reputation should persist to grow in the future. In this article, we will talk about the top 3 Stablecoins to use during the market crash in 2022.
What are stablecoins?
Stablecoins are also cryptocurrencies whose worth is secured 1 to 1 to another economic asset like fiat currencies. The most prevalent of these coins are tied to the US dollar. This provides investors in crypto assets the possibility to transform their money into a more usable format in a market that is extremely volatile.
If stablecoins are tied to the US dollar, then there are 3 distinct types of stablecoins:
- Stablecoins with Collateral: With this sort of stablecoin, each separate coin is supported by an asset. For instance, a monetary institution can carry a US dollar matching for each coin (Example: Tether, USD Coin, Binance USD).
- Algorithmic stablecoins: These coins utilize specific blockchain-based instruments to maintain the price of the coins stable (example:…