In the CeFi (Centralized Finance) and especially in the stablecoin world (stable with respect to the $US) , what is the best choice?
My point of view has evolved about USDT (or Tether) since the SEC (U.S. Securities and Exchange Commission) targeted this stablecoin. I just want to point out this fact and not the reason why they investigate the tether project. So the question is now how to switch USDT into another stable coin.
First I will consider that DAI is more dedicated for DeFi (Decentralized Finance, for instance see my post here) even if USDC is support in DeFi through lending platforms (like Compound or dYdX) but I will focus on DeFi platforms in this post.
My practice with centralized platforms, exchanges are as follow :
I used to trade with Binance (and Binance Future with leverage) with USDT because so many pairs are available with this stablecoin but I don't care because it's easy to switch with another stable coin like BUSD own by this platform or USDC or PAX or TUSD. Note that USDT is currently the largest stablecoin on the market and USDC being the second one.
About USDC, this is the main stable coin available in Coinbase (co-founded by Coinbase and Circle) my first account when I started investing in crypto currencies ( see my post about DCA strategy here). Bitpanda (Europe only) and Crypto .com platforms, allow you to change your USDT with USDC in case of.
But the main interest to hold USDC is to earn some APY (Annual Percentage Yield) with these centralized apps (non-exhaustive list) :
- Among many Altcoin, Celsius netwotk has a passive income on your USDC about 13% APY on USDC , you can choose to earn their own token CET or not (Referral program : my referral code 175950af96 when signing up and earn $20 in BTC with your first transfer of $200)
- Swissborg a new platform based in Switzerland with best liquidity rates among cryptocurrencies availlable, thanks to its a.i. exchange. They propose a Smart Yield account option to earn passive income on your USDC 11,5% APY, more if you are premium i.e if you store their own token CHST ( Referral program : earn between €1 to €100 in BTC with a lottery ticket by depositing at least €50 Euros, to get the bonus it's here)