The cryptocurrency market continues its existence for the second decade. Bitcoin was the first coin that saw the light of day. Perhaps its author was not so sure of its success. It takes a certain amount of time to create a cryptocurrency token and develop it. Therefore, developers now offer a wide selection of coins for investment. Today, the soft crypto exchange offers profitable options for its customers.
Stebocoins are modern cryptocurrencies that are stable due to their peg to the dollar or euro. Such coins are used to accumulate investments. They can be stored in an online wallet. You will not be able to make money on the difference in stablecoin rates. To begin with, it is worth understanding in more detail the operation and sale of modern coins.
Types of cryptocurrencies
Stablecoins are cryptocurrencies that represent the value of another asset. These are usually paper currencies such as euros or US dollars. A currency is the value of another currency. A stablecoin is a digital currency that represents the value of another asset (such as gold or fiat currencies). In principle, it can be any asset. However, stablecoins are typically low-volatility assets. Most of them are paper currencies such as euros or US dollars. This makes them relatively stable in value compared to other cryptocurrencies.
Investors who want to buy or sell cryptocurrencies do not necessarily have to do so through their fiat bank account. This usually saves time and money. Stablecoin acts as a link between the crypto sector and the classical market. Being tied to “stable” values, it facilitates the trading and storage of crypto-assets. For example, one of the most famous stablecoins is Tether’s USDT. Tezer is tied to the value of the US dollar. Stablecoins can be divided into three different categories:
- Asset-backed cryptocurrencies that give them stability.
- Insignificant and do not have outstanding active value, as well as their stability.
- Hybrid stablecoins are able to combine two different methods. Assets are held in reserve, but some algorithms also control their value.
Cryptocurrency has come a long way to date. Therefore, crypto exchange software provides opportunities for investors in much larger volumes.

Peculiarities of cryptocurrency operation
Stablecoins are special cryptocurrencies. They try to reproduce the value of traditional currencies such as the US dollar and use them to issue loans. This makes them particularly suitable for paying for goods and services. After receiving these payments, the value of the stablecoins is the gross income. In order to make a profit, you need to understand how cryptocurrencies work. To date, there are three effective methods:
- Hedging using classic assets. In stablecoins of this type, classic assets are deposited as collateral. For example, if you want to issue a token that represents the US dollar at a 1:1 ratio, you must deposit a physical US dollar for each bet with the relevant provider. If you resell it, you can exchange it back accordingly. For stablecoins that represent other assets, such as gold, you need to deposit the corresponding assets (in this case, gold).
- In addition to hedging using classic assets, there are also stablecoins that guarantee stability of value by using cryptocurrencies as collateral (Pfandbrief or security in German). The advantage of this is greater decentralization. Finally, the deposit can be managed using a smart contract, so there is no need for an intermediary like in the case of Tether.
- In addition to hedging with assets such as fiat currencies, gold or cryptocurrency, there is a third option to establish value parity with the underlying asset. The approach to algorithmic hedging is to forego collateral. Rather, automated buying and selling algorithms are designed to ensure price stability. In principle, this type of “stable cryptocurrencies” works similarly to a central bank – only automatically and decentralized. If the market raises the price above a target base value, such as one US dollar, the algorithm throws more tokensinto the market and thus artificially increases the supply. As a result, the exchange rate should return to one US dollar.
Stubcoins occupy an important part of the market. Today, it is impossible to imagine the existence of a market without a stable token, which is preferred by many investors. The ability to analyze and correctly use information allows you to increase the chances of profit.
Which cryptocurrencies to choose for investment
Analysis is a priority for any investment. That is, it is necessary to study in more detail the information about exchange rate fluctuations and earning options. If you need to accumulate investments, you should choose one of the following cryptocurrencies:
- Tether is the stablecoin with the largest market capitalization. Tether (USDT) is pegged to the US dollar. The USDT stablecoin targets a fixed exchange rate of 1:1 to the US dollar. USDT is issued by Tether Labs. Each USDT token must be backed 1:1 by Tether reserve. As demand for USDT increases, new units are minted.
- The USD token (USDC) was introduced in 2018 by Center Consortium. USDC is also pegged to the US dollar 1:1. Each unit of this cryptocurrency in circulation is backed by one US dollar.
- Binance, the world’s largest cryptocurrency exchange, also offers a stablecoin. Binance USD (BUSD) was launched on September 5, 2019, aiming to combine the stability of the US dollar with blockchain technology. BUSD is also physically backed by classical assets. By market capitalization, BUSD ranks third after Tether and USDC.
- DAI is an Ethereum-based stablecoin, the release and development of which is managed by the Maker protocol and the MakerDAO organization. DAI’s price is pegged to the US dollar and backed by a mix of other cryptocurrencies that are put into smart contract storage each time a new DAI is minted. This makes DAI one of the stablecoins backed by other cryptocurrencies.
A stablecoin is naturally subject to fluctuations in the prices of the collateral it deposits. This means that if the US dollar loses purchasing power, the digital image also loses purchasing power. Additionally, however, USDT is traded on a different market than the US dollar. Therefore, in some cases, volatility may occur within the stablecoin.

Conclusion
Stablecoin bets are popular with many investors because they can passively generate income without exposure to currency risk. But should you bet on stablecoins?
In fact, the profits from CeFi and DeFi platforms are often noteworthy. Therefore, it may be worth making a bet with stablecoins. However, what many platforms call staking is actually a lending business.
In this way, you lend your stablecoins and receive a certain interest rate in return. There is a risk here that the platform you lend your money to will have to file for bankruptcy. Thus, high profitability is also associated with risk.Making a profit, saving it and using it for shopping in online stores is an important task for every investor. Stablecoins are a secure coin backed by real currency. The ability to analyze the current market and use crypto exchange software provides an opportunity to profit.