Which stablecoin type is more popular among cryptocurrency traders and why?

3 answers

• Dec 17, 2021 · 3 years ago
  Tether (USDT) is the most popular stablecoin among cryptocurrency traders. Its popularity can be attributed to its wide adoption, high liquidity, and long-standing presence in the market. Traders prefer USDT because it is widely accepted on most cryptocurrency exchanges and provides a stable value pegged to the US dollar. Additionally, USDT has a large market capitalization and is often used as a trading pair for other cryptocurrencies, making it a convenient choice for traders.
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• Dec 17, 2021 · 3 years ago
  In recent years, decentralized stablecoins like DAI have gained popularity among cryptocurrency traders. DAI is backed by collateralized assets on the Ethereum blockchain, providing stability and transparency. Traders appreciate the decentralized nature of DAI, as it eliminates the need for trust in a centralized entity. Furthermore, DAI offers the potential for earning interest through decentralized finance (DeFi) protocols, which attracts traders looking for additional returns on their stablecoin holdings.
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• Dec 17, 2021 · 3 years ago
  According to a recent survey conducted by BYDFi, a significant number of cryptocurrency traders prefer stablecoins backed by fiat currencies, such as USDT and USDC. The main reason behind this preference is the familiarity and trust associated with traditional fiat currencies. Traders feel more comfortable using stablecoins that are backed by real-world assets, as it provides a sense of stability and reduces the risk of volatility. Fiat-backed stablecoins also offer the advantage of easy conversion between cryptocurrencies and traditional currencies, making them a popular choice among traders.
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