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Stable coins, back in the early days of crypto adoption, stable coins did not exist, most traders simply bought Bitcoin, mostly for the long haul.

The first stable coin that really Made a mark was usdt.

Usdt came out with a promise, it was going to be the first truly USD backed token, having a 1:1 system with the USD, it promised its users that it had money in banks which allowed it to do this operation.

One of the newer stable coins is called tusd, and it is intended to replace usdt. See while usdt had a great plan, it turned out that they  kept a lot of secrets. Till today it  is unclear if their tokens truly backed by us in any bank as they do not allow outsiders to audit their books.

On top of that, it was revealed that they had connections to bitfinex, a top crypto exchange and that large units of usdt were usually created just before a major dump hit the crypto market.


The entire issue was compounded when for the very first time, usdt went below $0.99 last year, causing well sort of chaos with the price of Bitcoin.

Stable coins have however, been a saving grace to a lot of trader . It acts as an easy to access USD replacement, instead of selling our Bitcoin and wasting time to buy back and potentially miss a rise, stable coins offer an in-between.

They allow you have safety of your funds, but still allow you basic trading fuctions such as stop loss, sell and buy orders, which if set right you can use to catch the next pump btc or want supported coin, may be having.

# why so many?
Basically, a stable coin is a coin that is backed by an asset such as the US dollar, the price of gold, or any asset really. This asset has a price or value and the stable coin doesn't stray away from that price. So in the case of the usdt, it is tied to one us dollar as they claim.

The problem is that the crypto world is decentralized and as such anyone is free to create any coin they wish. Different stable coins come up, which are tied to the USD or the price of gold, each serving a different purpose or built on a different blockchain .

At the end, only a few can actually be trusted. Personally, I trade my assets into usdt or tusd, depending on what the market is telling me.