Crypto coins are created and categorized as stable or non stable. Stable coins these are coins which were represent a certain value which is not subjected to change due to volatility in the market. There are different types of stable coins which include DAI, USDT, PAX, GUSD, TUSD and others but right now we are going to look at only 2 and see which one is safer and best.
DAI Coin
It is a stabilized cryptocurrency & also decentralized and was created via the Makers. It uses margin trading and they are created when a user deposit Ethereum or BAT Token so If anyone wants to take a loan in DAI, the Maker coin is used for paying stability fares.
It is not backed with fiat currency but with collateral and on stability of other assets. Its price is pegged at $1 and there slight fluctuations here and there, it has a maximum supply of 200 million out of that supply 132 million are circulating. It is relies on smart contracts and can be verified anytime by anyone.
USDT Coin
It is a cryptocurrency based on blockchain and its coins were created by a company called Tether LTD. The company behind USDT claimed that the coins in circulation are backed with with equivalent amount of fiat money e.g. USD, Euro or the Japanese Yen. There is a maximum supply of 9.1 Billion coins and the value of one USDT is $1.
Different Feature of Both
- Backing - USDT is backed with fiat money whereas DAI is backed with collateral and smart contracts
- Capitalization - USDT has been around since 2014 and it has a large market cap
- Transaction speed - whet it comes to speed DAI has better speed.
Conclusion
Early last year in around May, the lawyer of Tether admitted that the USDT coins in circulation only 74% is backed with real US dollars which makes it vulnerable to change in value as the coins in circulation are not tally with the real US dollars, but however it is a safe haven among other cryptos.
Both coins are good and stable coins but basing with the finding i have DAI is far much better because our trust will be on the smart contracts yet on USDT our trust will be in the people as the coin is backed by fiat money
