Cryptocurrencies have become a trend for the last 6-8 years. Celebrities, who lead an active debate about cryptocurrency on their social media platforms, have a significant impact. They’re frequently in the news, as well as on various blogs and podcasts. At the expense of PR from celebrities, who engage in a heated discussion about bitcoin on their social networks, one such Influencer is Elon Musk, who frequently alludes to crypto in his Twitter posts.
Billions of dollars are invested in crypto, basic users, and wealthy businessmen, companies, or even governments. The rapid growth of crypto-trends has led to the emergence of more and more successful crypto-projects, take for example the Bitsgap platform, which has gained much popularity in the US for developing crypto-assets, trading robots, such as Huobi bot, whose task is to facilitate the process of trading and help make money, beginners friendly.
Cryptoassets are “famous” for their volatility – that is, instability, large rate fluctuations – and are considered a risky investment. On the other hand, Bitcoin is constantly growing somewhere, and a whole stratum of society regularly jokingly cries about “I wish I had bought a bitcoin in 2010. What is this whole industry based on anyway?
Over the past few days, the market’s most popular cryptocurrency, Bitcoin, has been rapidly falling. Not the least of the culprits is one of the stablecoins, which suddenly ceased to live up to its name.
What is Stablecoin?
A stablecoin is a digital asset whose value is pegged to another asset, such as the US dollar, gold, or even the euro. The main purpose of a stablecoin is to provide cryptocurrency users with a way to store the value that is not subject to the volatility of the crypto markets.
There are different ways to peg the value of a stablecoin. Some use traditional fiat currencies as collateral, while others use crypto assets.
One of the most popular stablecoins is Tether (USDT), which is pegged to the US dollar. Tether claims that each USDT in circulation is backed by one US dollar held in reserve. However, there has been much controversy surrounding Tether, as there is no way to verify if the company actually holds enough US dollars to back all of the USDT in circulation.
This controversy came to a head in early October, when the New York Attorney General’s office filed a lawsuit against Tether and its sister company, Bitfinex, alleging that the companies had engaged in a cover-up to hide the loss of $850 million.
In the wake of this news, USDT began to lose value, and Bitcoin and other cryptocurrencies began to surge. This demonstrates the importance of having a stablecoin that is actually backed by a reserve asset.
The case of Tether also highlights the importance of regulatory oversight in the cryptocurrency industry. In the absence of such oversight, it is very easy for companies to engage in fraud and mismanagement.
Trading platforms
There are many different trading platforms that allow you to trade cryptocurrencies, but not all of them support stablecoins. Binance is one of the largest and most popular cryptocurrency exchanges, and it does not currently support any stablecoins.
This is likely due to the fact that Binance is based in China, and the Chinese government has been cracking down on cryptocurrency trading. As a result, Binance may be hesitant to add support for stablecoins, as it could attract more regulatory scrutiny.
Despite this, there are still many exchanges that do support stablecoins, and they are becoming increasingly popular. Kraken is one of the largest cryptocurrency exchanges in the US, and it offers trading pairs for several different stablecoins.
Here are some of them:
- Bitsgap – The platform’s developers came up with an idea to create a single trading terminal that would be able to work with various exchanges. This would save users the time and effort of having to switch between different exchanges to find the best prices for their desires.
- Bitfinex – One of the most popular exchanges, known for its high liquidity and margin trading.
- Bittrex – A US-based exchange that offers a wide range of trading pairs.
- ShapeShift – An exchange that allows you to convert between different cryptocurrencies without having to create an account.
- Huobi Pro – A Chinese exchange that offers a wide range of trading pairs. As you can see, there are many different exchanges that offer stablecoin trading pairs. This is likely due to the fact that stablecoins are becoming increasingly popular as a way to store value in the cryptocurrency market.
These are just a few of the many different exchanges that support stablecoins. As the demand for stablecoins increases, it is likely that more exchanges will add support for them.
