When many investors look at cryptocurrencies and consider investing, they first look at coins like Bitcoin, Ethereum, and Solana, also known as the major layer 1s – and then they move on to other altcoins that have tremendous upside. However, there is another subset of cryptocurrencies that are considered safe havens during bear market times like these – stablecoins.
The stablecoin market cap is very large, and two stablecoins are in the top five cryptocurrencies by market cap, and three in the top 10 – thus signaling their importance and market position. For a list of the top 10 stablecoins by market cap see the image below.
In particular, Tether (USDT) and Circle’s USDC are the two largest and most popular stablecoins that are both time-tested and battle-hardened. USDT was created in 2014, so it has the longest life cycle of all stablecoins. USDC launched in 2018, so it’s relatively younger.
But to expand on USDT, it’s a 1:1 Dollar backed stablecoin that often serves as the quote currency for many trading pairs on exchanges such as Phemex. For example, to spot buy Bitcoin, you’d go to the BTC/USDT trading pair and buy Bitcoin with USDT. Really, USDT has come to play a hugely important role in cryptocurrency trading and adoption worldwide. It’s simply easier to send someone USDT rather than USD or another local currency.
(Source: USDT’s reserves are 86% cash and cash equivalents, with the remaining 14% in other investment vehicles.)
Investing In USDT On Phemex
On exchanges like Phemex, investors can invest in USDT by creating an interest-earning savings account through Phemex’s Earn Crypto program. In fact, Phemex is currently running a promotion for USDT savings where for 7 days we’re offering a rate of 18.8% APY on USDT. So for those interested in exploring different ways to invest in USDT with a high return, this product is worth consideration.