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What is stablecoin? Stablecoins on cryptocurrency exchanges – list for 2019

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Stablecoins are a type of cryptocurrency whose value is tied to fiat money or precious metals. Most often, stablecoins are pegged to the US dollar, at the rate of 1 asset = 1 dollar.

Stablecoins are used by cryptocurrency exchanges to quickly and cheaply transfer large amounts of dollars to each other, without the need to use a banking system. There, the fees for such transactions would be significantly higher.

How did stablecoins come about?

The controversial issue that arose since the advent of bitcoin 10 years ago about whether electronic or virtual money can compete with traditional types of currencies can already be said with full confidence that it has been decided in favor of the latter.

This is evidenced by the almost avalanche-like appearance of many cryptocurrency exchanges, crypto exchangers, payment services, blockchain start-ups, and even the spread of cryptocurrency ATMs. Moreover, many corporations, banks, world-famous investment funds are feverishly introducing departments for working with the blockchain , hiring hastily specialists.

However, in spite of such impressive prospects for cryptocurrencies, they still have a number of disadvantages, one of which is high volatility. Those. rapid and strong change in course over a period of time. This creates serious difficulties when using crypto as a means of payment – “here and now”.

One of the attempts to solve such a problem is to create some hybrid cryptocurrencies that serve as a cross between the usual fiat money and pure cryptocurrencies – stablecoins. This interesting innovation in the world of cryptocurrency will be discussed in this article.

What is stablecoin?

There is no exact or official definition of what stablecoin is (hereinafter referred to as SK) (from the English stable – stable, fixed). As a basis, you can take the definition that exists in such reputable financial analytical publications as Bloomerg.

Stablecoin refers to a cryptocurrency asset whose current value is provided by one of the traditional and liquid types of assets – currency, commodity values, i.e. assets accepted in world financial practice, as a reliable and legal means of calculation.

The main task of stablecoin is to smooth out the cryptocurrency volatility, due to the fact that its price (market value on the market) is “tied” to the price of, for example, the US dollar, Swiss franc or gold.

Here the analogy of what was before 1973, when both the American dollar and even the Soviet ruble were provided with full-weight gold, had a "gold standard" is quite appropriate. Using this practice implies the following benefits of stablecoins:

  • the predicted cryptocurrency rate, which allows you to make payments even on long-term contracts between counterparties;
  • insurance against a sharp depreciation of cryptocurrency, especially when insiders use information manipulative technologies;
  • the possibility of using asset-protected crypts as a means of accumulation and reservation;

With all the advantages of such a solution to the problem of volatility, any SC has one big drawback. The fact is that the percentage of security or liquidity of the UK will be determined by the one who issued it. Those. stablecoin cannot solve the problem of rate manipulation by the issuer.

That is why so far, Bitcoin remains a reliable means of saving, or as it is called "digital gold." It is a fully decentralized crypto, no one can manipulate its course, depreciate, print more or lower the percentage of security with something valuable.

Types of stablecoins

The cryptocurrency market has just begun to conquer the global financial space and you should be prepared for the fact that a huge number of cryptocurrencies, types, varieties will appear.

As for the UK, the following classification is currently used, which is used in the practice of digital coins.

Secured by fiat currencies

Such stablecoins mainly work according to the scheme, when the number of issued digital coins is equal to the amount of real, reliable money used to secure it. For these purposes, the US dollar is still mainly used – the most reliable international means of payment. However, there are already attempts to make a UK based on other world currencies.

In particular, China has plans to make a crypto secured by the renminbi by 2021. Despite such a positive moment, all these fiatable stablecoins have the following limitations:

  • IC carries those exchange rate risks as the currency, which serves as a means of ensuring it,
  • not all payment systems, including cryptocurrency, can accept or service this type of IC
  • there is a real risk of manipulating the course, since no one knows for sure how many dollars or other fiat will be used to provide IC (the problem of decentralization). The most used fiat-based ICs are TrueUSD (TUSD), USD Tether (USDT), USD Coin (USDC), Paxos Standard (PAX), Gemini Dollar (GUSD), Bitcoin Air (USDAP)

Secured by cryptocurrency

This is a cryptocurrency where a more reliable and liquid digital instrument is used as the underlying asset. It is generally used primarily to provide bitcoin, ripple and ether. Sometimes it is practiced to bind SK to the “basket” of cryptocurrencies.

This option does not particularly solve the problem of the volatility of the course, but it increases the degree of user confidence in this digital coin. An example from SC practice is “DAI” provided by Ethereum (ETN) .

Unsecured

Such stablecoins are relatively rare when used in practice calculations. The main task of those who issue such coins is to earn additional income in the form of Seigniorage. Those. income received by the cryptocurrency issuer from the fact that its users carry out all payments only through the payment servers of the crypto owner, paying him a percentage of the commission.

This model was initially widely used in the primary cryptocurrency offering market ICO, which peaked in mid-2016 and late 2017.

The main difference between unsecured ICs and other altcoins is that the issuer maintains a certain level of liquidity in the payment system, periodically neutralizing jumps in the IC rate.

Stablecoins market overview

Despite its relative youth, the UK market for the period from 2018 to mid-2019 showed impressive dynamics. So, during this time more than 200 new ICs and blockchain projects appeared on the market using this crypto format.

The distribution of SK shares by types of assets used as collateral is presented in the figure above.

The leading position in the market of derivatives of cryptocurrencies of the UK is occupied by Tether, with a dominance of 75%.

The trading volume of major types of ICs is still small and reaches $ 120 billion at the moment. But the dynamics so far remains upward and, as demand for crypto assets grows, in view of, for example, the impending powerful economic crisis, the growth rate of IC usage will take an exponential form.

TOP 5 stablecoins, list for 2019

Digital coins that comply with the SK standard and have direct practical application are:

  • Tether (USDT) is the absolute leader in the stablecoin market in terms of issued funds and daily transactions.
  • True USD – as the developers say, the liquidity of this token is provided in a ratio of 1 to 1. This is, like, a digitized US dollar.
  • USD Coin – used for trading on Coinbase and Circle cryptocurrency exchanges
  • Gemini USD – used in trading on the cryptocurrency exchange of the same name
  • PAX – Paxos Standard Token. It is used for settlements on the Binance and Okex trading platforms.

Important figures are stability and liquidity.

From the point of view of today's user, two factors are critically important for stablecoin: stability and liquidity.

  • Stability – an indicator of how much the coin deviates from the target price ($ 1),
  • Liquidity, however, shows how many coins can be bought or sold without significant impact on the market, or the cost of slippage.

Stability can be approximated by various indicators of volatility , although in the case of stablecoins it will be more accurate to talk about price emissions rather than standard deviation, liquidity can be judged by the volume of trades – the larger the volume of transactions, the cheaper each of them will cost.

If you measure this parameter more accurately, you need to take an order book and see how much you can sell or buy instantly within a given slippage range (say, 1%).

In practice, these two factors correlate: the greater the liquidity of the stablekion, the less susceptible it is to short-term price spikes. And for these two factors – stability and liquidity – so far no one is even close to catching up with Tether.

I have included market capitalization in the table because it is a number that interests many – but it can be deceiving. For example, although Dai's market capitalization is approximately equal to that of TrueUSD, the former is much less liquid.

Below you can see that the TUSD / USDT pair on Binance is incredibly liquid – with several million dollars of cash liquidity available within a 1 percent price deviation.

I do not consider these liquidity figures directly for TUSD, since most people are interested in trading stablecoins for BTC or ETH, and not among themselves.

If a coin is used as a carrier of value (NS), we expect a high market capitalization from it – a coin costs more than dollars. If this is a medium of exchange (CO), we can talk more about volume – a lot of coins are sold.

I included in the table included a measure of the speed of money, calculated as the average daily volume / market capitalization. For Tether, this parameter is incredibly high (this is an annual rate of more than 300, for comparison, for M1 dollars – all dollars, except for bank reserves, – about 6), which indicates that cryptocurrency is used mainly as a medium of exchange, and can also be an indicator that people actively avoid storing capital in Tether.

Prospects for the use of stablecoins in the future

Regarding the prospects for using ICs as a means of calculating and storing assets, specialists have many points of view. But the fact remains that as more and more financial transactions and transactions, especially international ones, go into the crypto space, the demand for a certain stable cryptocurrency standard will grow more and more. Many cryptocurrencies with the status of the UK are already claiming this role. The flagship is no doubt USDT.

In addition, it should not be discounted that the competition in the cryptocurrency market will only increase and at any time another initiative can intercept the initiative, for example, the Facebook developed cryptocurrency Libra.

Cryptocurrencies created specifically for mutual settlements, for example Ripple (XRP) and Stellar (XLM), can significantly move SK from this market. It is believed that they can be used as a cryptocurrency standard recognized by states, the IMF and world payment systems such as Visa and Master Card.

Publication date 08/16/2019
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Binance Exchange added the ability to purchase cryptocurrency from Mastercard

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This Friday Binance Exchange announced the addition of the possibility of buying cryptocurrencies using bank cards in the Mastercard system.

The service covers 19 countries, including Russia and Ukraine. There are no other CIS countries on the list yet.

To use the option, you must log in to your personal account at https://www.binance.com/ , go to the “Buy Cryptocurrencies” tab and select payment using a bank card. Bitcoin, Ethereum, XRP, Binance Coin, USDT and some other assets are available for direct purchases from Mastercard cards.

Previously, users already had the opportunity to buy cryptocurrency on Binance using Russian Visa cards.

Also this morning, Binance CEO Changpen Zhao hosted another live broadcast at Periscope. Zhao’s speech mainly covered the latest achievements of the exchange, including the launch of the Binance Card , mining pool , Binance KR, OTC portal, as well as cooperation with Brave and the acquisition of CoinMarketCap . In addition, Zhao recalled the need to maintain social distance.

“We have completed the initial development of platforms, and now I think it is important for us to support mining , since bitcoin mining is now centralized. We want more players to take part in it, as well as support existing players, ” he said.

In addition, on his Twitter, Zhao shared a screenshot testifying to the preparation of the exchange for the launch of option trading.

He left no comments on this subject. In the main Twitter account of Binance, a list of tasks for testers that was “publicly available” was posted. Among other things, it includes the item “test option trading”.

Publication date 04/04/2020
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TRON (TRX) cryptocurrency review – forecasts and prospects, current rate

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Cryptocurrency TRON (TRX) is a decentralized protocol based on blockchain technology designed to create a global entertainment network with free content.

In simple terms, TRON is a service similar to all well-known social networks and platforms where users have the opportunity to publish, view and use any available content for entertainment, for example, online games.

The TRON project is currently developing the idea of joint consumption, which is that on a single global platform, users will be able to share entertainment content.

Official TRON cryptocurrency website: https://tron.network

Analysts call this platform the broadcast of the modern entertainment industry. In general, the functioning of this system is as follows:

  1. The author or copyright holder publishes the result of his intellectual work on the official website. You can download anything from literary novels to an author’s song or art on a specific topic. Next, the participant uploads information about how his creation can be used (as an accompaniment to another work or as an independent product). Nearby, he indicates the price of his work.
  2. Another user who is interested in this work acquires it for the local currency Tron (TRX). However, users should remember that it is impossible to purchase this or that product on this resource using fiat money (dollar, euro, rubles, etc.). The system has its own cryptocurrency , which must be purchased at exchangers or exchanges in order to complete a transaction.
  3. As soon as the interested user has acquired the result of intellectual work, the amount indicated by him is transferred to the author’s account. The author can use the tokens at his discretion – purchase a work from another author, simply save money in his account, or exchange it for another cryptocurrency or fiat funds.

About what TRX is, initially interested in all users who are just starting their activities on the site. This resource uses several types of tokens for different purposes:

  • Tron (TRX) . This is the main currency of the system. For this currency you can buy or sell the results of your intellectual work. If necessary, the owner of a certain amount in this currency can exchange it for fiat money or other cryptocurrency.
  • Tron Power It is impossible to purchase or exchange other money for a given currency. The only way to get them is to secure the TRX currency on the site platform. In this case, they are converted to TR. The presence of such tokens gives advantages to their owner. For example, the holder of a TR has the right to vote for one or another change in the system, or to oppose them.
  • TRON 20 . Coins owned by developers. With the help of them, they create new full-fledged blockchains with new tokens.

The TRON cryptocurrency issue is limited, 100 billion coins have been issued at present. However, it is worth considering another point – starting in 2018, tokens begin to be burned (they are meant to be forwarded to an address known only to developers). The last major burn was in June last year, but how often such procedures will be carried out is currently unknown.

project team

The team of this project has on its side professionals working in various fields. The founder of the platform and the creator of TRX Coin is Justin Sun , who also created a social network with an audience of 10 million people. In 2017, Forbes magazine included Justin on his list as one of the most successful entrepreneurs, who was not yet 30 years old.

The technical director of the project is Lucien Chen , who has extensive experience in working for large Internet companies. He is perfectly versed in blockchains and the principles of functioning of cryptocurrencies.

Deus Yu , responsible for quality control, has been working in the computer games industry for a long time. According to Justin Sun, the experience of Deus will come in handy a little later, when the platform gains even greater popularity.

Charles Zhang , an adviser who is well versed in a business not related to cryptocurrencies and blockchains. He has repeatedly lectured on the basics of entrepreneurship, with which he was invited to many universities. Charles made a huge contribution to the promotion of the platform at the initial stage.

Blockchain Browser

Block Explorer is a search tool that allows you to view the addresses of wallets involved in the system, blocks, as well as data of transactions completed or committed. It can be compared with standard browsers, with the help of which an ordinary user searches for the information he needs on the Internet.

For each cryptocurrency, a personal Block Explorer is created that shows the network status for a given period of time. For the Tron cryptocurrency, such a Block Explorer is called TRONSCAN , where users can get all the information they need ( https://tronscan.org ).

How to mine Tron?

The developers of the platform did not provide for mining the Tron cryptocurrency , since they had already created all the necessary coins. In addition, the creators talked about the scheme according to which their cryptocurrency will work:

  1. 40% of the total number of coins will go on sale to enable the project to develop further.
  2. 15% of the remaining amount is allocated for acquisition by investors. Investors are players who, after the main sale of coins, will be ready to purchase tokens further.
  3. The remaining funds are “frozen” and remain in the accounts of the company owners.

Justin Sun explained that perhaps mining will be provided in the future when the company gains the necessary popularity.

TRX Token Wallets

The user can choose one of two options for storing Tron coins (TRX):

  • Storage of tokens on the exchange;
  • Creating your own crypto wallet.

With proper use, wallets provide a higher level of security. All types of wallets for Tron (TRX) are described in detail in this review .

Buying and selling TRX coins

You can buy a Tron on popular crypto exchanges , we recommend that you use the first 15 exchanges, and do not forget to install additional account protection. On the selected exchange, you must go through the registration procedure, after which you will be given a personal wallet, as well as its address.

The most popular and safe exchangers where you can buy and sell Tron:

The exchange rate of the Tron cryptocurrency against the ruble as of October 28, 2019 is 1.29 rubles per 1 coin. For a detailed analysis of the course and chart of coins, we recommend that you look at the Coinmarketcap website.

Development Perspectives and Company Roadmap

A distinctive feature of the project is its roadmap, which is scheduled until 2027. It is divided into several stages:

  1. Exodus It lasts from 2017 to 2018 and is considered officially completed. During this period, information about the project was actively disseminated, as well as developers were engaged in improving tools for using the site.
  2. Odyssey . Accounted for 2019-2020. During this time, developers will pay special attention to the economic development of the platform.
  3. Great Voyage . Captures July 2020 and ends in July 2021. Implementation of a personal ICO system, and third-party developers will have the opportunity to launch their own ICOs.
  4. Apollo It lasts from March 2021 to March 2023. Creating a decentralized exchange platform.
  5. Star Trek . It begins in April 2023 and ends in September 2025. Creation of a decentralized platform for the development of any computer games.
  6. Eternity . It starts in September 2025 and ends in September 2027. Platform users will have the opportunity to create their own playgrounds.

The developers mentioned that if these plans are implemented, a new roadmap will be created in the future, which will begin in 2028.

When analyzing the active nodes of the Tron cryptocurrency, you can notice the scale of the development of the project, where the majority of servers are located in the USA, China and Germany.

The forecast for Tron cryptocurrency from leading analysts suggests that, taking into account the current features of the crypto asset, in the future the project can absorb the entertainment market. And this means that in 2020 the value of one coin is able to stand on one level with the dollar.

Main competitors Tron

The project has two main competitors – Qtum and Ethereum . Each competing company has its own advantages, for example, the first has a more advanced platform in terms of technology, and the second wins due to smart contracts and fame.

Analysts are confident that the Tron platform will still have to fight for its users, since the developers are aimed at a specific audience. However, the Throne does not have special advantages that would distinguish the project from its competitors, which could become a serious problem in the future.

Conclusion

Tronix cryptocurrency has good prospects for further development, since the project itself is one of the most ambitious among others. However, at present it is not in demand. Investing in such a project will bring quite large risks, however, long-term investments can bring the investor good profit.

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The largest exchange Binance has the opportunity to deposit / withdraw deposits in rubles

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The Binance cryptocurrency exchange this Wednesday activated the possibility of making deposits in Russian rubles.

According to the instructions provided on the website, deposit / withdrawal of funds is carried out through the AdvCash payment system , including using bank cards. The commission for the deposit in this case is 3%, for the withdrawal – 2.5% plus 50 rubles.

To deposit / withdraw assets in rubles, you need to go to the “Buy cryptocurrencies” tab in the upper control panel or select the “RUB” currency in the user's wallet, then indicate the desired direction of payment and other necessary data.

Trading pairs for exchanging the ruble for cryptocurrencies on the Binance platform have not yet been presented.

Earlier today, CoinDesk published excerpts from a conversation with Binance CEO Changpen Zhao during his visit to Moscow last week.

“We are always looking for partners in any community, especially in Russia. Russia is a key market for us, it is one of the most active markets in the global blockchain space, ” he said then.

Zhao also confirmed that Russia is included in the Venus project, in which Binance intends to launch several regional stablecoins.

“We are working with potential issuers of stablecoin tied to fiat currency. We do this in all jurisdictions, in Russia in particular, we are looking for partners, ” he added.

Last week, Binance listed its first cryptocurrency pairs on its main platform, starting with Nigerian naira. The exchange also supports fiat trading at selected sites in Uganda, Singapore, the United States and Jersey.

Publication date 10/30/2019
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Name Price24H (%)
Bitcoin (BTC)
$8,854.48
-0.61%
Ethereum (ETH)
$201.84
-1.09%
XRP (XRP)
$0.194122
-0.69%
Bitcoin Cash (BCH)
$227.84
-0.50%
EOS (EOS)
$2.51
-0.72%
Stellar (XLM)
$0.065159
-0.71%
Litecoin (LTC)
$42.42
-0.92%
Cardano (ADA)
$0.053631
0.52%
Tether (USDT)
$1.00
0.08%
Monero (XMR)
$61.72
-0.68%
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