Understanding the similarities as well as differences between TrueUSD vs USD.
Intro
The cryptocurrency domain is well known for its high volatility which indirectly attracts a lot of investors as well as day traders from the world. The highly volatile cryptocurrency market has become highly challenging for the traders to store their cryptocurrency funds in a very effective manner, as due to high volatility, the prices of their cryptocurrency funds is fluctuating even when they are not interested to trade. In order to keep track of this, a number of cryptocurrency coins and developed which year precisely develop in order to mitigate imitate the functionalities of the traditional Fiat currencies. Thanks to the series of stable cryptocurrency coins which are utilized effectively by the traders as well as investors in order to avoid the constant transfer of the Fiat currency through them. Let us understand the difference between the two most famous stable coins: TrueUSD vs USDT.
TrueUSD vs USDT: Introduction
Volatility is one of the major concern which is hindering the widespread worldwide acceptance of the cryptocurrencies throughout the masses, for the daily transactional purposes. Therefore two of the most famous stable cryptocurrency coins which are pegged to the value of US dollars are TrueUSD and USDT. USDT is also well known as Tether. Therefore, let us try to understand the differences as well as similarities between TrueUSD vs USDT.
Advantages of such coins
The stable coins of such kind provide immense amounts of security to the investors as they protect the investors from the crashing of the price due to high volatility with respect to any cryptocurrency for that matter.
Both the stable coins are equated with one US dollars. The precise reason being as the US dollars is mostly considered as a set standard within the cryptocurrency domain and also the familiarity of the customers with it has rendered it to become a standardized cryptocurrency or a standard for such stable coins. According to experts, respective amounts of Fiat currency is back for in order to develop stability and reliability within the stable coins both TrueUSD and USDT.
TrueUSD vs USDT: Popularity
USDT is highly popular when compared to TrueUSD as USDT is far more mature than TrueUSD due to its early inception within the cryptocurrency space. As the latter stable coin was released much later after week former one, it has not been able to gain much popularity when compared to its counterpart automatically.
TrueUSD vs USDT: Speculations
However, according to experts, a number of false allegations were imposed upon USDT, as the community members were accused of not having the respective amount of US dollars backed, in order to support USDT. This has created immense amounts of doubt and fear within the cryptocurrency users, which might indirectly be taken advantage of by TrueUSD.
TrueUSD vs USDT: Explained
TrueUSD is nothing but an Ethereum based token where each token is equated with 1 US dollars. However, it is highly different from the USDT as there are no actual reserves of the Fiat currency in order to maintain the stability of the coin. Instead, the stable coin has collaborated with major financial Institutions as well as banks across the world and is estimated to hold the funds in the escrow accounts.
TrueUSD vs USDT: Security
However, the funds which are stored on an escrow system cannot be accessed by the third party intermediary in any manner. This results in the high amount of reliability when it comes to TrueUSD. Therefore, the cryptocurrency token is expected to surpass USDT when it comes to its adoption among the users of the cryptocurrency domain. The escrow accounts which store the cryptocurrency funds for TrueUSD are checked on a consistent basis by another third-party auditing firm. This makes the TrueUSD one of the most reliable options when compared to its counterpart.
TrueUSD vs USDT: Working mechanism
In order to keep the value of TrueUSD to 1 US dollars, the respective amount of cryptocurrency tokens are minted when someone does a wire transfer in order to avail TrueUSD and burnt when someone requests for their Fiat currency for the TrueUSD respectively. When it comes to USDT, the reserves of the Fiat currency are provided with various security levels.
Conclusion
Amongst the volatility of the cryptocurrency market, the stability provided by such coins is becoming highly valuable and rare, therefore, one is to make the best use of the various facilities provided within the cryptocurrency space in order to get the best return on Investments.
