What is A Stablecoin & Types Of Stablecoins?

azeem22 (68)in Steem Alliance • last year (edited)

Hello Everyone!

I am good jadni hope you are also well and good today i think that we talk about stable coin.Today when i take my dinner then my cell was ringing i pick up my phone to and recive call of my teacher and now you think that why i tell you my dinner time because i discuss something about cryptocurrency with you then i continue i receive call of my teacher then she told me her husband invest almost 1 cror in cryptocurrency trading then after that he lost all their amount and now she has no hiuse no shop and no money thats. a very big news for me and i think that so many people invest in cryptocurrency and lost all thier amount but why people do it before taking any knowledge about it.They invest almost all their savings in cryptocurrency and they not know even 5 coins of cryptocurrency infact they don't know what is cryptocurrency.Thats why today i think that i discuss about stable coins.Stabke coins are best for those who invest in something and want to profit because when we invest in stable coins then you have a profit with very low chance of loss.

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StableCoins

Nowadays we gain so many knowledge from different resources about stable coins.Stable coins always around 1 dollar its not wrong to talk the average amount of stablecoin is 1 dollar.And if company goes to loss then these types of companies have reserve amounts which is best for investers.

Source

Four Types Of Stablecoins

Stablecoins are further divided into four major types and now i discuss all these types in details but firstly i tell you about five names of stable coins which are best and so benefits in cryptocurrency then other coins.I see that mostly people not know difference between stablecoins and other coins and they invest in randomly thats become harmful for investers.Lets discuss ahout the name of stablecoins:

Source

1 Fiat Backed Stablecoins.
2 Crypto Backed Stablecoins.
3 Commodity Backed Stablecoins.
4 Algorithm Stablecoins.

Fiat Backed Stablecoin

Fiat backed is the most stablecoin other then three stablecoins and i like it more and i recommended to invest in it because fiat coin always reserved dollars in equal amount of their selling coins.
For example:

BUSDUSDT.

Crypto Backed Stablecoin

Crypto backed is also a stable coin and its almost around 1 dollar price and in the stable coins more then 90 percent chance to gain profit and this is best in trading.This type of coin reserved cryptos in case of company goes to loss its not a company cryptos but it has other cryptos.
For Example:

USDT

Commodity Backed Stablecoin

In crypto world stablecoin is king of all the coins but in stable coins i like more fiat backed stable coin and after this i recommend commodity backed stablecoins because in both coins government also take a part in this.Commodity backed stablecoins reserved gold or silver in equal amount of there selling or price of this coin.
For example:

Algorithm Backed Stablecoin

Algorithm is last and fourth type of stablecoin in which its depend on contracting and most common example of this is USDD which is new in cryptocurrency.

Conclusion

Many people invest in so many different coins but they dont know any knowledge about it that's why everyone who trading nowadays they loss their all savings thats best way to invest in trading world is invest four or five different stablecoins if one company loss and your account goes to zero then you reserve your other amount in other accounts but if you invest all the money in one coin and company goes to zero then you loss your all saving so best way that i also use this is invest in different stable coins. Thanks for seeing my post if you learn it so please share your remarks in comments and take care of your self and carely invest your savings in safeable and stable coins.