Against the backdrop of violent fluctuations in the cryptocurrency market, investors' demand for asset preservation is becoming increasingly prominent. This article aims to answer how to effectively hedge risks in the turbulent currency circle. It will introduce in detail the concept of stablecoin, a core hedge tool, and provide a list of TOP3 stablecoins by analyzing the current highly recognized options in the market. The article will explain how to select and use these stablecoins according to their own needs, so as to better manage risks in an uncertain market environment.

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Ouyi OKX:

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Huobi htx: [

What is a stablecoin?

Stablecoin is a special cryptocurrency whose value is designed to remain stable and avoid severe price fluctuations like mainstream crypto assets such as Bitcoin. To achieve this, their value is often pegged to some stable asset, most commonly with USD 1:1 . When the market is generally down, investors can convert other cryptocurrencies they hold into stablecoins, temporarily avoid the risk of price declines, and wait for the market to stabilize before entering the market again. Therefore, stablecoins play multiple roles in the crypto ecosystem, including value scale, trading medium and hedging tools.

TOP3 stablecoin list

1. Tether (USDT): As the stablecoin with the largest market share and the highest liquidity , USDT is supported by almost all mainstream trading platforms and has unparalleled versatility. According to general feedback on the Internet, its advantage is that its transaction depth is good and its exchange is convenient and fast. However, the issue of transparency in its reserves is also discussed from time to time, which is a factor that users need to consider when making a choice.

2. USD Coin (USDC): USDC is widely regarded as the strongest competitor of USDT, and it is known for its transparency and compliance . Its issuer Circle will regularly release reserve certificate reports audited by top accounting firms, giving users greater confidence in their asset support. According to comprehensive comments, USDC is a highly recommended choice for users who value funding security and compliance.

3. Dai (DAI): Unlike the first two, DAI is a decentralized stablecoin . It does not rely on central institutions to keep collateral assets, but instead over-collateralizes multiple crypto assets through smart contracts on Ethereum to generate and maintain their value stability. Internet users believe that DAI's biggest advantage lies in its censorship resistance and transparency. All operations can be checked on the chain, which is more in line with the decentralized spirit of the crypto world.

How to choose and use stablecoins

When choosing a stablecoin, it is recommended to consider several key factors, such as the transparency, compliance and application scenarios of the reserves . For users who trade frequently, liquidity of USDT may be the first choice; for users who seek long-term and secure holdings, USDC compliance is more attractive; for deep DeFi participants, the decentralized nature of DAI is more popular. For the specific use process, please refer to the following steps: 1. When predicting that the market may decline, sell the risky assets (such as BTC, ETH) you hold on the trading platform and exchange them for the selected stablecoin. 2. Hold stablecoins to avoid the risk of market price fluctuations and achieve temporary locking of asset value. 3. When the market shows signs of recovery or bottoming out, use the stablecoins you hold to buy your favorite crypto assets.

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