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Crypto Guides

The Australian Stablecoin Guide

By January 6, 2019 January 8th, 2019 One Comment

Introducing The Australian Stablecoin Guide

Why write a specific Australian Stablecoin Guide? Because Stablecoins are fast becoming popular with traders and investors due to their ability to retain value and minimize price volatility. Furthermore, as the coin is a cryptocurrency, it benefits from the highly liquid crypto to crypto exchanges. Despite the dozens of stablecoins out there, nothing exists that shows Australians what they can actually use.

Stablecoins can be purchased with fiat currency such as Australian or US dollars. They are then used on exchanges to purchase other cryptocurrencies. Really, the main benefit with stablecoins is that they act as a stable and liquid hedge when conducting trades by reducing volatility when compared to Ethereum and Bitcoin markets.

Decentralised Applications can also integrate stablecoins right into the app, avoiding the requirement for a fiat gateway. Due to most stablecoins being Ethereum based, they are an attractive currency for developers to integrate.

How Stablecoins Work

A stablecoin is exactly what the name implies, which is a coin that remains stable. These coins all started after Tether, a stablecoin pegged to one american dollar, became widely adopted and used by traders worldwide.

You can learn more about Tether in our video below.

The coins use blockchain technology and are backed by collateral. Some are backed by actual dollars sitting in a bank, and others are backed by cryptocurrency locked up in a smart contract. Centralisation is strong is some models, while other are pursuing the ideals of complete decentralisation.

According to the Stablecoin Index, there is currently 29 stablecoins active or in development. This Australian Stablecoin guide has been focused on which coins Australians can actually use. In other words, which coins can be purchased and used on an exchange accessible to aussies.

Lets get started.

The Australian Stablecoin Guide List

Tether (USDT)

Ticker Symbol: USDT

Currency Peg: $1 US Dollar

Collateral backing: Fiat currency

Where to buy in Australia: Coinspot, Kraken,

Exchanges for Tether markets: Binance, Bittrex, Poloniex,

Overall thoughts: Tether is by far the most popular stablecoin in the world. Ranked at #8 by market cap, the coin has $1.8 billion is value backing it, and has over $3.8 billion in daily trading volume. Second only to Bitcoin in liquidity, Tether is the best stablecoin option right now and can be used on a variety of crypto to crypto exchanges worldwide.

USD Coin

Ticker Symbol: USDC

Currency Peg: $1 US Dollar

Collateral backing: Fiat currency

Where to buy in Australia: Coinbase

Exchanges for USD Coin markets: Binance, Bittrex, Poloniex, CoinBase Pro

Overall thoughts: For Australians, there is far less incentive to use the USD Coin unless you are using CoinBase Pro. The CoinBase Pro exchange is an insurance backed exchange that is designed with traders in mind. The coin also has far less markets than Tether, so your options are limited.

Thats a short list!

Honestly when writing this blog, I thought the list would be huge! There are many stablecoins out there, including DAI, TUSD, GUSD, and many more. What surprised me is the lack of availability here in Australia.

We have our own AUD stablecoins in development, such as OnRamp and sAUD. However, until these coins are live and operational, we will still need to be using Tether or Coinbases’s USD Coin.

Another important aspect is liquidity. Ultimately it doesn’t matter how many stablecoins there are, because unless they are being used on a variety of exchanges with strong trading volume, they will be less-convenient than coins like Tether.

Over-time as more coins become available, I will update the Australian Stablecoin Guide to include any new additions!

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