The Aftermath of Raging Bear Market-2022
Since the horse of the crypto market started plummeting in price, there was a frenzy seen among the bitcoin investors. The downward arc of Bitcoin took all other altcoins along its trail and set the market sentiments blazed. This snowballed into a raging FUD (fear, uncertainty, and doubt) made many of the short trade investors face the brunt. While some technical experts and trading gurus’ made money in this bearish market, one could see the aftermath and sudden shockwaves of crypto’s downfall. The situation for the new entrants and some noobs and learners was worse as they saw no point of recovery for their invested funds because the market was showing no signs of ultimate recovery. The spot market was where more havoc was visible, especially among amateur investors. There were many crypto mandarins guiding people to invest in a particular token that later proved to be helpful while some shenanigans misled the masses into investing in fake projects, tokens, and coins.
The penultimate decision is not yet resolved because we are right now in the last quarter of 2022. Before we get to the end of 2022, let us sum up the crypto market situation. We will see which coins and tokens remained most stable while making investments safe from raging market sentiments. Let us have a look at the most stable cryptocurrency of 2022
What Remained Stable in Shambolic Crypto Market?
The market witnessed all altcoins turning topsy-turvy and releasing nonplussed instances where each day had different news, and resultantly many altcoins faced selloffs as on a rampage by crypto investors. Still, there were some lucky ones, that made their investors stay safe from gaffed crypto investments. Let us look at the safest currency to invest in 2022, which absorbed the tumultuous shocks of the cataclysmic market situation. Here is a list of the most reliable cryptocurrencies to help you gauge and diversify your crypto portfolio in a bearish market.
Best Stable Coins to Invest In
Tether acted most stable in the rowdy market. It remained this way because of a strong semblance with the USD. It is pegged by USD on its back. That is why it is closer in terms of price to 1 USD. Tether has been enjoying this status since 2014 and remains the most stablecryptocurrency today. The market cap of the tether is tantamount to $82.44 billion and bears the capacity to absorb itself as the most widely used medium of exchange on different crypto trading platforms. Whether it is DEX (decentralized exchange), CEX (Centralized Exchange), or a HEX (Hybrid Exchange) USDT would be available with all pairs of coins and altcoins. According to Tether, they keep reserves of cash to make it equivalent to USD in the market. In terms of usage, it ranks as the 4th most widely used crypto.
USD Coin (USDC)
USD Coin, also known as USDC enjoys the same reputation as Tether. USDC is also pegged to USD. The coin was introduced in October 2018. USDC is collateralized by fiat and was launched by the CENTRE consortium. CENTRE consortium is a partnership of Circle and Coinbase to help introduce another stablecoin like USDT. USDC and USDT resolve most key issues of crypto i.e., volatility and conversion. USDC currently has a market capitalization of $51.35 billion and ranks the 9th most trusted and valuable cryptocurrency in the world. USDC applies the same principle of pegging their token with USD cash reserves.
Binance USD (BUSD)
Binance famous for being the biggest exchange in the crypto world, has created its crypto to incentivize its traders. Binance played a key strategy to make it more reputed by making the New York State Department of Financial Services use it and make crypto transactions. BUSD has a total market capitalization of $17.88 billion. BUSD’s amount is also equivalent to 1 USD and gives a lower charge when you buy it as compared to other stablecoins. When we talk about numbers, BUSD has reached a market capitalization of $17.88 billion. At present, BUSD is the 19th most persistent and famous cryptocurrency.
With the emergence of many stablecoins, a more reliable stablecoin named Terra USD (UST) has created facilitation for crypto traders and maestros. In terms of value, it is also pegged against the USD. TerraUSD has an astounding market cap of $16.70 billion. The use case of UST is to earn returns from Luna and its staking. As Terra’s staking and governance work with rewarding tokens whereas other use cases include earning through arbitrage prospects.
Dai is also amongst a list of stablecoins but differs in terms of pegging and backup. It is pegged by USD but has Ethereum tokens on its back. Dai is the 36th most-used cryptocurrency in the market. Launched in 2015, the market capitalization is around $9.45 billion. It is slightly less than a dollar, making its price around $0.9936.
Do not Put All Eggs in One Basket- Diversify!
When as a trader or an investor you want to build a strong crypto portfolio but feel weak then you must add more stablecoins to your crypto basket. As a beginner or an expert, your portfolio should not contain just one or two cryptocurrencies. Try to add some of the best stablecoins to invest in so you can bear the risk and still feel safe with some of your money in the stablecoins. There is no rule of thumb to decide which stablecoins work best and which ones are the most sustainable crypto coins, but we can eventually take a hiatus from the crowd’s emotions and make a pragmatic decision using some fundamental and technical analysis before investing in any stablecoin as well as another cryptocurrency.