The Top 3 Fiat-Independent Stablecoins In 2019?

What are they?

9 min readSep 2, 2019

Whenever the question, what are the top fiat-independent stablecoins, while most do not even want to hear about stalecoins mining anymore, most crypto enthusiasts think of Tether.

The question is, is Tether a top Fiat-Independent Stablecoin, and if yes, should we invest in it, and if no why invest in tether then as many people are doing?

Feels like I’m going into a lion’s den but I want to get this off my chest:

Am I the only one who always thought that a stablecoin that’s used by everyone would be the breakthrough that cryptocurrencies needs? (Assuming that it can be traded into other coins)

I think Libra is interesting news. Doesn’t replace Bitcoin or Ethereum as investments or in use case and solves a problem of mass adoption.

As long as you KNOW that it’s controlled by centralized companies and don’t buy more than your grocery and beer money I don’t really see the problem.

I have many things to say but I will try to break it out so you can follow me properly.

What are Stablecoins?

Frankly speaking, they are price-stable cryptocurrencies, which market price is pegged to another stable asset.

I may seem varying but the truth is, a stable coin backed by the dollar is a stable coin backed by a currency that has lost 97% of its purchasing power since the establishment of the Federal Reserve in 1913.

You can that a true stable coin would be backed by something stable like gold! Which has preserved purchasing power for 5,000 years.

The Science of StableCoins

The higher BTC pumps this time, the more attractions stable coins actually get. traders won´t go away, but there is no purpose anymore to trade in BTC, it doesn’t make sense, it’s a red sea. But if you look at the USDT markets, most coins are in green.

So exchanges are pumping BTC (to death actually) and keep buying stable coins, it’s a clever move, no doubt.

The 3 Types of Stablecoins In 2019

So far, there are three types of Stablecoins.

1. Fiat-collateralized. These cryptocurrencies are backed by real-world currency and traditional assets (gold, silver, oil, etc.). These coins share a one-to-one relationship with the fiat currency at which it is pegged. The advantages of fiat-collateralized Stablecoins are:

Simplicity. This is a great advantage, both in helping people to understand how it works and in implementing those solutions.
100% price stable.
Security. It’s less vulnerable to hacks since no collateral is actually held on the blockchain.
The examples of fiat-collateraliz

The Top Stablescoins To Keep

Looks like there are so many now, TUSD, USDT, USDC, USDS…

After knowing the above, the big question is,

Of course, the smart thing to do is keep coins in your own wallet, and best to keep it in fiat if you don’t want to have it in a non-”stable coin”. But if you do, which do you recommend given all the options currently?

I know you never asked more but let me give you more value.

#1. USDT

This has always been a great Stablecoin. Unless you have not experienced the deep, then this coin might not have created that positive effect, but if you did, then, this is the real deal.

Here is a question a cryptocian asked…

“There is 3x as much USDT now in circulation as there was in Dec 2017 while other stable coins aren’t issuing much. Who is buying it”?

Let’s analyze his reasons for the question…

Who is buying all this issued USDT? Institutional investors don’t have KYC problems or geographical problems. The average person can’t/isn’t buying USDT from Tether directly.

So it begs the question, why is there 3x as much USDT now and why aren’t all the other major stable coins seeing such significant growth? Who is making all the initial purchases? Iran? North Korea?

Seems very sketchy that USDT is exploding even when there is much less public interest and even more stable coin options than ever before.

Let’s bump in.

Question/Consideration:
#1. “There is 3x as much USDT now in circulation as there was in Dec 2017 while other stable coins aren’t issuing much. Who is buying it”?

Answer: It’s the exchanges that do most of the buying.

And the majority of this happens on Binance.

I think Binance own about 33 % of all Tether issued. Also, USDT has issued almost 2 Billion USDT the past 6 months which for me seems crazy while you have much better stable coin alternatives now, who are transparent and more regulated.

Do you think that it doesn’t make that much sense though, I mean, why not buy USDC/PAX/TUSD and ditch USDT completely?

#1a. Why is the USDT so powerful?

Players like Binance, OKEX, and Huobi have almost no fiat options still want to offer their customers the ability to trade against a stable coin. That is why Tether exists.

There is 3 billion Tether as you say …. and Binance owns one billion alone! OKEX exchange owns like half a billion, Huobi is a few hundred million, Poloneix has a few hundred million, and obviously Bitfinex owns a ton. Then you got Kraken, and all the others etc.

I would say 90% if owned by exchanges with Binance being the king.

#1b. Why is the USDT so powerful?

Chinese buy USDT as they can’t hold USD itself, I do wonder why not move to better stablecoins like TUSD PAX especially DAI though.

Chinese people keep money in Tether because there is a general sentiment that the Yuan will drop against the dollar, based on speculations, so, Tether is the gateway into crypto in China.

Now, when China buys plenty of USDT, the question is,

Are the Chinese completely unaware of the extra risk they’re taking when they choose USDT over USDC/TUSD/PAX?

I mean, they’re under investigation by DOJ/NYAG/CFTC, have lied several times to the public and try to avoid attestation/audits at all cost.

Those are some pretty big red flags if you’d ask me.

Daunting Question: Is USDT a safe haven?

Unless you understand how it works, a lot of people think nobody outside of tether knows how tether works.

For example, they pumped out over 1,500,000,000 USDT in the last 75 days, all while insolvent.

What of USDC? Should you buy, trade and hold it? I think ya. Why? Let’s go ahead below.

#2. USDC

What of USDC?

Coinbase is U.S. Operated and insured also compliance with regulations and vetted. Coinbase is U.S. Operated and insured also compliance with regulations and vetted.

Just as USDT, USD Coin (USDC) is a type of cryptocurrency that is referred to as a stablecoin. You can always redeem 1 USD Coin for US$1.00, giving it a stable price.

So USDC with them is a safe bet.

As of the time of writing, Volume (24 hours s $89.6M, and the Circulating Supply stands at 453.8M USDC.

Should you buy this coin?

I trust (like a normal word) Coinbase as a startup because they have the powerful backing of giant investors.

And for Coinbase customers, with your US dollar accounts, you can exchange 1 USDC for US$1.00 (and vice versa) on Coinbase in jurisdictions where USDC support is available.

USDC is an Ethereum token and is the only fiat-backed stablecoin currently supported by Coinbase.

HOW TO BUY STABLECOINS

Where to Buy USDC coin? Coinbase

How to Buy Stablecoins on Coinbase?

You can buy it on Coinbase. How? See steps.

#1. Create or sign in to your Coinbase account

#2. Convert USDC at a ratio of US$1.00 for 1 USDC with no fees

#3. Send elsewhere or convert back into dollars on Coinbase

#3. DAI.

Dai is a Stablecoin that aims to be worth exactly one US dollar.

Advantages are that I don’t need to KYC/AML on every damn exchange to move it. It can e.g. withdraw it from Bitfinex and store it on a normal ERC-20 address without need to send someone my ID, Bank Statement and Blood Sample.

Second advantage (and maybe a disadvantage at the same time) is its decentralization. Backed by Crypto, not by Fiat and without any central authority have a way to freeze it.

Do you know that you can earn DAI is backed and featured on the worlds crypto google — Coinbase? Most interestingly, you can earn FREE $20 via DAI on Coinbase.

How to Earn DAI

Step 1. Register and create an account on Coinbase.com.

By the way, I have been using Coinbase as my best online crypto vault since 2017, and I have no need to regret.

So, to earn DAI worth $20, you want to register and create an account on Coinbase.

Click here to create a free account on Coinbase.com

Step 2. Click on Earn Crypto

Upon verifying your account via an email sent to you, go ahead and login to your account.

On your Dashboard, click Earn Crypto.

Step 3. Select the crypto of your choice and get started.

All you need now is click on DAI, and start the lessons.

Lesson 1 is just a 2 minutes video so it won’t take your time.

But before that, you will get this.

“We’ll notify you if you’re eligible, and when it’s your turn to earn”.

Just monitor your registered email account for a link to watch and start earning.

Interested in DAI?
Of course, a lot of crypto enthusiasts are interested in it and below are other reasons.

You can move and store DAI freely without fear that it gets blocked because someone think the proof of income you send them 3 times is not enough.

On the other hand, if you want, you can be sentimental in the fact that it harbours some risks, however, the idea to back it by crypto is interesting.

How to Buy Stablecoins on Binance?

Because I use often these 2 giant crypto startups — Binance and Coinbase (since 2016),

When it comes to buying these top coins from home; Bitcoin, Bitcoin Cash, Ethereum, Litecoin and XRP, I recommend using Coinbase. Why? It is as simple as linking your local account and buying the cryptos of your choice.

Buying Stablecoins.

Let’s say you want to buy USDT from Binance.