Learning the friendly way

When Satoshi Nakamoto created Bitcoin, they designed it in such a way that should the value increase dramatically, there would still be an inclusive decimal value for the masses. Satoshis could one day be how we buy a cup of coffee anywhere in the world, using the same currency from Britain to Japan.

How many Satoshis are in a Bitcoin?

Much like fiat currencies, cryptocurrencies can be divided into smaller units. While the US dollar and Euro has cents as its smallest denomination, Bitcoin has satoshis (also referred to as SATs). But unlike cents, satoshis are 100 millionth of a Bitcoin, meaning that Bitcoin can be divided into 100 million units, that's eighteen decimal places. 

See the table below illustrating the various values of Bitcoin vs satoshis.

How many Satoshis are in a Bitcoin, exactly?

1 Satoshi 0.00000001 Bitcoin
10 Satoshi 0.00000010 Bitcoin
100 Satoshi 0.00000100 Bitcoin
1,000 Satoshi 0.00001000 Bitcoin
10,000 Satoshi 0.00010000 Bitcoin
100,000 Satoshi 0.00100000 Bitcoin
1,000,000 Satoshi 0.01000000 Bitcoin
10,000,000 Satoshi 0.10000000 Bitcoin
100,000,000 Satoshi 1.00000000 Bitcoin

As defined by the technology, only 21 million Bitcoin will ever exist, meaning that there will only ever be 210,000,000,000,000 satoshis. That's a tough figure to wrap your head around. As indicated above the link between satoshis and Bitcoin is several decimal places, certainly not calculations we were taught in school. A less complicated notion to digest is that satoshis were named after Bitcoin's creator, Satoshi Nakamoto.  

Bitcoin measurement units

The creator of the peer-to-peer digital currency outlined in the Bitcoin white paper the decimal places that Bitcoin is divisible by. Throughout the whitepaper, they only referred to two measurement units, Bitcoin itself and satoshis. Several years down the line as the BTC price continued increasing, market research and various discussions resulted in the decision that more measurement units were required.

Five years after Satoshi Nakamoto disappeared from online forums, a universal ISO update was released that recognised two new Bitcoin measurements. 

• MicroBitcoin (μBTC) 

1 BTC = 1,000,000 MicroBitcoins (μBTC) = 100 SATs

• MilliBitcoin X (mBTC)

1 BTC = 1,000 MilliBitcoins (mBTC) = 100,000 SATs

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When taking a glance at your Bitcoin wallet you can choose to see satoshis, microBitcoins or miliBitcoins. By any account, it will likely take a few years before we're referring to buying goods in SATs.

How to calculate SATs

As we've already established in the information provided above, 1 BTC is worth 100,000,000 SATs. While one could do the maths, there are plenty of tools available online that can do the sums for you. Better yet, as satoshis are recognised as universal units of value, you can change the currency setting on several sites.

For instance, on Coin Market Cap, you can change the default currency to SATs by selecting the currency drop down option in the top right-hand corner. Select the Satoshi option under Bitcoin units.

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This will then display all values as satoshis. 

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Alternatively, you can use one of the many satoshi calculators available online, which will instantly convert your currency value into SATs. In the future when using SATs as a form of payment, the value owed will likely be presented to you in the same form, allowing for a much easier consumer experience.

‍Key Takeaways

SATs are used by the Bitcoin network and crypto exchanges. Miners on the Bitcoin blockchain use SATs to determine the fee owned to them for transactions validated, while some exchanges use SATs to measure altcoin's value and performance against Bitcoin.

It is likely if in the future Bitcoin is fully integrated into our financial systems that prices in shops and supermarkets will be reflected as a value in SATs as opposed to BTC.

The process of investing involves putting your money or capital into something with the aim of earning more money and making a profit. Investment strategies are sets of principles, rules, and approaches that an investor follows to manage their investment portfolio. A sound investment strategy can help an investor achieve their financial goals, manage risk, and maximize returns.

In this article, we will provide a beginner's guide to investment strategies, including its definition, benefits, types, and key principles. We will also discuss various investment terms and jargon that a new investor should know.

What are investment strategies? 

Investment strategies are plans of action that an investor follows to manage their investment portfolio. It involves selecting investments that align with their financial goals, risk tolerance, and time horizon. Good investment strategies takes into account market conditions, diversification, and risk management techniques. 

The primary goal of investment strategies is to help investors maximize their returns while minimizing potential losses. These strategies can be created by the investor themselves or by a financial advisor and used across varying markets, from the stock market to the crypto market.

The benefits of having an investment strategy

Having an investment strategy can help you achieve various financial goals, whether they be generating income, building wealth, or funding retirement. It also helps you manage risk, reduce potential losses, and maximize returns. Strong investment strategies consider each investor's specific investment objectives, time horizon, risk tolerance, and market conditions.

Various types of investment strategies

There are several types of investment strategies that investors can implement during the investing process depending on their unique circumstances (risk tolerance, capital, financial goals, etc.). From value investing to income investing, we cover the most popular investment strategies below.

Value investing

Value investing is a strategy that involves buying stocks that are undervalued compared to their intrinsic value. This approach seeks to identify companies that are trading on the stock market at a discount price and have strong fundamentals.

Growth investing

The growth investment strategy is one of the best investment strategies as it focuses on investing in companies with high growth potential, even if they are currently trading at a premium. This growth investing strategy is designed around identifying companies with strong earnings growth, innovative products, or dominant market positions. Growth stocks will typically encompass both mature and emerging companies.

Income investing

The income investing strategy focuses on generating regular income from investments, such as dividend stocks, bonds, or real estate investment trusts (REITs). Here the aim is to provide a steady stream of income for investors, especially those who are retired or seeking passive income.

Index investing

Index investing is also one of the more common investment strategies that seeks to replicate the performance of a particular market index, such as the S&P 500 or the NASDAQ. This approach offers investors broad exposure to the market at a low cost.

Momentum investing

Momentum investing is a strategy that involves buying stocks that have shown strong performance in the past and continue to outperform the market. The aim here is to capitalize on the trend of rising prices and momentum in the market.

Contrarian investing

Contrarian investing is a stock market focused strategy that involves buying stocks that are out of favor with the market or have fallen out of favor. This strategy centers around identifying companies that are undervalued by the market and have the potential for a turnaround.

Active investing 

Active investing is a strategy that involves actively managing a portfolio, often through the frequent buying and selling of assets. This strategy generates higher returns than passive investing but requires more time, research, and expertise.

The key principles of investment strategies

Regardless of which of the different investment strategies one chooses, here are some key principles that every investor should follow.

Set investment goals

Before you start investing, you should have clear investment goals and a plan to achieve them. Your investment goals should be specific, measurable, achievable, relevant, and time-bound.

Diversify your portfolio

Diversification is the process of spreading your investments across different asset classes, sectors, and regions. Diversification helps reduce risk by minimizing the impact of any single investment or market event on your portfolio.

Manage risk

Remember that all investments carry some level of risk, and it is important to manage risk to avoid potential losses. You should assess your risk tolerance and invest accordingly. You can also use risk management techniques, such as stop-loss orders, to limit your potential losses.

The long-term investment strategy

Investing is a long-term game, and you should be patient and disciplined in your investment approach. Playing the long game and investing in long term investments is more likely to deliver financial independence.

Control your emotions

Emotions can cloud your judgment and lead to irrational investment decisions. It is important to control your emotions and stick to your investment strategy, even during market downturns or volatility.

Focus on fundamentals

When selecting investments, it is crucial to focus on the fundamentals of the underlying companies or assets. This includes factors such as revenue growth, earnings, valuation, and competitive advantage.

Stay informed

The investment landscape is constantly changing so ensure that you stay informed about market trends, economic indicators, and company news. This can help you make more informed investment decisions and adjust your strategy as needed.

Investment terms that every investor should know

As a new investor, you may encounter various investment terms and jargon that can be confusing. Here are some of the most common investment terms and their definitions:

Stock: A stock represents ownership in a company and gives the holder a claim on a portion of its assets and earnings.

Bond: A bond is a debt security that represents a loan made by an investor to a borrower, typically a corporation or government.

Mutual funds: mutual funds are a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets.

ETF: An ETF, or exchange-traded funds, tracks a particular market index and can be bought and sold on an exchange like a stock.

Asset allocation: Asset allocation is the process of dividing your portfolio among different asset classes, such as stocks, bonds, and cash, to achieve your investment goals and manage risk.

Market capitalization: Market capitalization refers to the total value of a company's outstanding shares of stock, calculated by multiplying the number of shares by the current market price.

Dividend: A dividend is a distribution of a portion of a company's earnings to its shareholders, typically paid out in cash or additional shares of stock.

Expense ratio: The expense ratio is the annual fee charged by a mutual fund or ETF to cover its operating expenses, expressed as a percentage of the fund's assets.

P/E ratio: The price-to-earnings ratio compares a company's current stock price to its earnings per share, indicating how much investors are willing to pay for each dollar of earnings.

Yield: Yield refers to the income generated by an investment, typically expressed as a percentage of its price or face value.

Market order: A market order is an instruction to buy or sell a security at the current market price, regardless of the price level.

Limit order: A limit order is an instruction to buy or sell a security at a specific price level or better.

Stop-loss order: A stop-loss order is an instruction to sell a security if its price falls below a specified level, designed to limit potential losses.

Bull market: A bull market is a period of rising stock prices and optimistic investor sentiment.

Bear market: A bear market is a period of declining stock prices and pessimistic investor sentiment.

Conclusion

Investing can be a complex and challenging endeavor, especially for those new to it. While understanding the different types of investment strategies, key principles, and terms is important, it can be extremely beneficial to consult a qualified financial advisor. An experienced financial advisor can provide personalized guidance to help you build an investment strategy tailored to your specific financial goals, risk tolerance, and life situation.

They can offer professional expertise in areas like asset allocation, portfolio diversification, tax optimization, and risk management. Working with a financial advisor takes the guesswork out of investing and can increase your chances of achieving your long-term financial objectives. Remember, investing is a journey, and having the right professional partner can make a significant difference in navigating that path successfully.

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Portfolio diversification is a strategy that involves allocating funds across a variety of different securities and assets to reduce risk and improve overall potential returns. It is recommended by financial experts because it helps to spread out the risk and prevents your portfolio from being too dependent on one particular asset.

What is diversification?

Diversification is a key strategy for managing portfolios and risks. Effective risk management involves spreading out allocations to minimise vulnerability to market changes.

The concept of diversification is simple - instead of putting all your eggs in one basket, you spread them out across multiple baskets. This way, if one allocation underperforms or experiences a loss, the impact on your overall portfolio is minimised because the other allocations can potentially offset those losses.

A diversified portfolio can consist of various types of assets, including stocks, bonds, funds, real estate, CDs, and even savings accounts. As each asset class behaves differently in different economic conditions, it offers varying levels of potential gain and loss.

While we won't cover this topic here, it's worth noting that when referred to in a business sense, diversification involves expanding product offerings or entering new markets to reduce reliance on a single revenue source and mitigate risks.

Exploring the concept of diversification in portfolio management

Diversification involves spreading allocations across various asset classes to reduce risk exposure. For instance, allocating funds to stocks, bonds, and cash equivalents simultaneously forms a diversified portfolio, or allocating funds to stocks across several countries and industries.

Diversification minimises the impact of poor performance in one asset class. In contrast to relying solely on a single asset type, diversified portfolios provide a safety net against market volatility, enhancing long-term stability.

Different types of asset options

Below we explore a number of asset options that can be utilised in a diversified portfolio:

Stocks

• Stocks tend to have the highest long-term potential returns but can also experience significant volatility in the short term.

Funds

• Funds can be diversified if they hold many different assets, but some funds may focus on a specific industry or sector.

Bonds

• Bonds offer more stable potential returns with fixed payouts but are influenced by changes in interest rates.

CDs and savings accounts

• CDs and savings accounts provide stability and steady growth based on interest rates.

Real estate

• Real estate can provide slow appreciation over time and potential income, but it also involves maintenance costs and high commissions.

By owning a mix of these assets, you can benefit from the different performance characteristics they offer. When some assets are performing well, others may not be doing as well, and vice versa. This lack of correlation between assets is what makes diversification effective in reducing risk.

The benefits of diversification

Diversification not only helps to reduce the risk of your portfolio, but it can also improve your potential returns. By spreading your allocations across different types of assets, you are more likely to have a smoother overall potential return. While one asset may be experiencing a downturn, another asset may be performing well, balancing out the overall performance of your portfolio.

It's important to note that while diversification can reduce risk, it cannot eliminate all risk. Diversification helps to reduce asset-specific risk, such as the risk associated with having too much allocation in one stock or one type of asset. However, it cannot protect you from market-specific risk, which is the risk associated with owning a particular type of asset in general.

How to build a diversified strategy

To develop a diversification strategy, you can start by creating a portfolio that includes a mix of different assets. Be sure to allocate based on your personal risk tolerance, time horizon, and financial objectives. Below are several options to consider when building a diversified portfolio.

Examples of building a diversified portfolio

Please note that this is not financial advice but merely examples of how one might diversify their portfolio.

You might explore the option of allocating funds to a widely diversified index fund, such as the S&P 500 index, which holds interests in numerous companies. Combining bonds and CDs could contribute to portfolio stability and assured potential returns. Holding cash in a savings account can offer stability and act as a financial safety net.

If you're inclined to expand beyond the fundamental approach, further diversifying your stock and bond allocations is an option. For stocks, you could contemplate allocating funds to a fund targeting emerging markets or international corporations, as these often diverge from broader index funds. Regarding bonds, varying maturity lengths in bond funds can grant access to short-term and long-term bonds.

Some financial professionals even suggest the consideration of including commodities like gold or silver to extend diversification beyond conventional assets.

Building a diversified portfolio may seem complex, but it doesn't have to be. You can utilise low-cost mutual funds or exchange-traded funds (ETFs) that offer diversification across different asset classes. Many major brokerages now offer these funds with zero commissions, making it a more accessible and cost-effective offering for those allocating funds.

If you prefer a more hands-off approach, you could contemplate allocating funds to a target-date fund or utilising a robo-advisor. Target-date funds recalibrate asset allocation according to your planned time horizon, progressively adjusting to lower-risk assets. Robo-advisors use algorithms to formulate and sustain a diversified portfolio grounded in your objectives and risk tolerance.

Risk management

Be sure to regularly review and rebalance your portfolio to ensure it aligns with your objectives. Assessing and adjusting the asset allocation helps maintain desired levels of risk and potential returns.

In conclusion

Diversification is an essential strategy for those looking to reduce risk and potentially improve returns. By spreading allocations across different assets, you can mitigate the impact of any single asset's performance on your overall portfolio.

Whether you choose to build a diversified portfolio yourself or seek assistance from a fund or robo-advisor, diversification can help you navigate varying economic conditions and work towards your financial objectives.

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What started off as a joke has become an international phenomenon with a market cap that ranks it among the top 10 cryptocurrencies (not to mention price gains). As we explore what Dogecoin is, let's take a look at where the digital cash network came from, why the cryptocurrency became such a sensation and how it compares to Bitcoin.

Leading the way in the meme-based movement, Dogecoin has become the most unlikely of leaders in its field as it trades at a very attractive price. Everyone from investors to run-of-the-mill Internet users has followed the hype and invested in this meme-inspired altcoin.

Did you know that Dogecoin has more DOGE in circulation than Ethereum and Litecoin combined? Let's dive in to understand the true value behind this Internet meme-inspired cryptocurrency

Who created Dogecoin?

Dogecoin was created as a joke cryptocurrency in 2013 and is based on a Shiba Inu dog meme circulating at the time. Two developers, Billy Marcus and Jackson Palmer got together to create the cryptocurrency to poke fun at Bitcoin, which turned out to be a lot more than that almost a decade later.

What is Dogecoin?

Dogecoin is a peer to peer payment system with its native cryptocurrency, DOGE, acting as the medium of exchange. The cryptocurrency was created in December 2013 through a hard fork off of the Litecoin network. The cryptocurrency has no limit on the maximum amount of coins and currently has over 131 billion DOGE in circulation.

While a popular option as a digital cash payment method, the cryptocurrency is most commonly used as a tipping system to reward quality content on social media platforms like Twitter and Reddit. Working in a similar way as cash would in a financial transaction.

What's triggered Dogecoin's surge?

The self-proclaimed "Dogefather" and Tesla CEO Elon Musk has contributed to Dogecoin's recent success with his tweets about the cryptocurrency making news headlines around the planet. His tweets have had a significant effect on the cryptocurrency's price as published on the CoinMarketCap website.

With a similar mining style to Litecoin, Dogecoin is a popular option when it comes to trading cryptocurrencies.

How does Dogecoin work?

Using blockchain technology, Dogecoin facilitates digital transactions in a transparent and mutable way. Hard forked off of the Litecoin network, Dogecoin uses the same Scrypt technology in the Proof-of-Work protocol. Unlike Litecoin, however, the cryptocurrency can execute transactions in 1 minute.

Users simply need to create a wallet in order to store DOGE, from where they can either send and receive the cryptocurrency or simply store it. DOGE works similarly to other cryptocurrencies in this regard.

In the last year, investors have seen high gains as the celebrity-endorsed hype surrounding the cryptocurrency increased its value. As interest grew in the Shiba-meme token, so too did its market cap, pushing Litecoin out of the top 10 biggest cryptocurrencies and edging closer to Ethereum (currently in second place).

The Dogecoin foundation

In 2014 members of the Dogecoin team created a not-for-profit foundation to oversee project development and direction. This dissipated over the years and was recently relaunched in 2021 with several key new members and an inflated market capitalisation.

While co-founder Billy Markus and Dogecoin's core developer Max Keller remain on the board, two new additions have been made with the likes of Ethereum founder Vitalik Buterin as well as Jared Birchall, the manager of Elon Musk's family office. 

The team meets on a monthly basis to discuss issues relating to the virtual currency, with each member taking responsibility for various aspects. Markus is responsible for overseeing the community and memes while Keller will function as the cryptocurrency technical advisor.

Buterin will serve as the blockchain and crypto advisor and Birchall as the financial and legal advisor (representing Elon Musk).

Dogecoin's following

From its initial launch, Dogecoin has had a spirited and loyal following. In its early days, the community raised funds for high profile events, like sponsoring a NASCAR driver and sending the Jamaican bobsleigh team to the 2014 Olympics.

To date, a number of high profile celebrities have put their name behind the coin, most notably Elon Musk and billionaire Mark Cuban. Musk was responsible for several waves in the crypto market in 2021, causing substantial boosts and dips in the capitalisation of the market. Most notably in May, after a tweet from Musk stating only "How much is that Doge in the window?" The DOGE price increased by 11% in mere hours. 

While Dogecoin was not created to be a store of value, the Dogecoin price increases certainly brought about tons of media attention and healthy returns for investors.

Dallas Mavericks owner Mark Cuban is also a huge fan, celebrating the cryptocurrency for being "the one" when it comes to a digital medium of exchange. In 2021, the NBA team started accepting Dogecoin as a payment option for merchandise and ticket sales, incorporating blockchain into the main league.

What is the difference between Dogecoin and Bitcoin?

While both cryptocurrencies are designed to provide a medium of exchange, they differ in a number of ways. For starters, they both use the same Proof-of-Work mining concept which is based on miners solving complex mathematical problems in order to mine new blocks and control the supply.

Different from each other, the Dogecoin network can process transactions 10x faster than Bitcoin (1 minute vs 10 minutes for BTC). They also have varying inflationary statuses, with Bitcoin being deflationary in nature due to its 21 million coin cap while Dogecoin is highly inflationary as it has an unlimited supply. 

While Bitcoin can be held as a store of value, Dogecoin is less supported in this area due to its lack of maximum supply and the fact that millions of DOGE are entering circulation each day. DOGE however, is better suited to being a medium of exchange.

While Bitcoin has a strong following around the world, there is a significant Twitter and Reddit community punting the coin and encouraging traders to buy the cryptocurrency. From internet meme to international top 10 traded cryptocurrency, Dogecoin has an impressive history when it comes to market value.

How do I buy Dogecoin?

In just nine months the cryptocurrency has become a legend of sorts in the crypto community (including Reddit), moved into the top 10 cryptocurrencies based on market cap, and grown 5,000% in value.

Should I immediately pour my life savings into it? Probably not. But if you're looking to add the cryptocurrency to your cryptocurrency investment portfolio, look no further than the Tap Global platform. DOGE is one of the latest cryptocurrencies to be onboarded on the mobile app. 

The post-pandemic working world is a different place entirely. These days, many people have given up their nine to five jobs to work from home, joining the gig economy where projects are more short-term and schedules are flexible. After all, all one needs is a reliable internet connection and a space to work.

These temporary projects allow for more freedom when it comes to creative license, time constraints and living a life best suited to the individual. And they just got a whole lot easier thanks to the electronic cash system that is Bitcoin (and other crypto assets).

The Gig Economy Meets Blockchain

There are plenty of upsides to working in the gig economy, most notably that you can pick your own hours. As you are in control of your schedule you can choose your vacation times, you’re your own boss, and you get to choose what jobs you take on.

In the UK alone the gig economy between 2016 and 2019 doubled in size, equating to a staggering 4.7 million workers. Meanwhile, in the European Union, the number of freelancers rose by 24% between 2008 and 2015, from 7.7 million to 9.6 million people.

The U.S. Bureau of Labor Statistics reported that 36% of all employees in the United States are part of the gig economy, approximately 57 million people. Unfortunately of these 57 million, 58% reported that they have not been paid for work that has been completed. 

This problem could be solved through the use of blockchain and smart contracts. Smart contracts are digital agreements that automatically execute once the criteria have been met. Say you agree to complete a project within a certain time frame, once the project is completed and submitted, the payment is released. No need to request or accept payment, the funds are cleared and deposited directly into the relevant account.

Another positive to merging the gig economy with blockchain technology is the use of cryptocurrencies. 

4 Reasons Why Getting Paid In Crypto Just Makes Sense

While smart contracts would need to be made in order for them to smoothen out the wrinkles of unpaid jobs, cryptocurrencies are available right now. The benefits of crypto transactions when it comes to working remotely just make sense.‍

1) Cryptocurrency transactions are fast and cheap
‍While the thought of using Bitcoin payments might sound scary, they are in fact incredibly simple to send, receive and withdraw. With the use of blockchain technology and the Bitcoin network, international transactions can be completed in minutes with considerably fewer fees. Not just Bitcoin, all digital currencies for that matter.

All you need to do is pick a cryptocurrency, share your wallet address and wait for the crypto transaction to clear. Through the Tap mobile app you can then use the funds to pay bills or sell them for fiat currencies and send them to your personal Tap account to spend as you please or directly to your bank account. 

2Anyone can make crypto payments
‍While opening a bank account is typically a very tedious task, opening a crypto account is very easy. Anyone anywhere in the world can easily create an account, add funds, and start transacting. As the network is entirely digital, employees and employers based anywhere in the world can tap into this and effortlessly make crypto payments.

3) You can work from anywhere
‍On that note, cryptocurrencies give you the freedom to work anywhere in the world as there are no constraints on receiving payments allowing you to sell your skills in the global market. There has also been an increase in jobs looking for freelancers that are willing to accept Bitcoin, goodbye central banks and hello digital assets‍

4)Low transaction fees make small jobs worth it 
‍If you've ever been hesitant about accepting small jobs, this is the one for you. When small jobs pay less, the payments might frequently be entirely overwhelmed by the transaction fees associated with receiving your payment for the job.

That is not the case when it comes to some cryptocurrencies, with Litecoin for example charging merely $0.02 per transaction. 

How To Get Paid In Cryptocurrencies

If you’ve decided to take the plunge, you can either request that your employer pays in crypto, or specifically look for crypto-paying jobs (more on this below). The next step is to set up an account from where you can receive said crypto.

The Tap mobile app will tick all the boxes, and opening an account is incredibly simple. First, you will need to download the app and then register. You’ll be asked to fill in some personal information and then verify your identity with a government-issued identity document. This is all very normal and is required by law. 

Once you are verified, head to the home page, select the Crypto wallet and choose a cryptocurrency you would like to receive / the cryptocurrency you will be paid in. Then select Receive and send the wallet address to your employer/contractor. You will get a notification when the funds arrive in your account. 

If you’re looking for jobs that specifically pay in crypto, look to Purse.io, Ethlance and Coinality. These are part of the gig economy and pay in cryptocurrencies. Good luck out there, it will 100% be worth it!

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Cryptocurrencies have gained a reputation for being largely volatile investments. While stock too can have their moments (what with Peloton stocks dropping 20% every other day) the crypto market carries the brunt of it. 

Thankfully, stablecoins have come to the rescue. While still functioning as digital currencies powered by blockchain technology, stablecoins are pegged to external assets such as fiat currencies or gold, thereby eradicating (most of) their volatility. 

A Short History Of Stablecoins

After the advent of Bitcoin in 2009, it was only a few years later that a stable digital asset entered the market. Stablecoins came into existence in 2014 when a Hong-Kong based company named Tether Limited released a coin of the same name. The Tether coins' value was pegged to the US dollar, meaning that 1 USDT would always be worth $1. 

In order to guarantee this value, the company held the dollar equivalent in bank accounts. Skip past the controversy surrounding their reserves and lack of financial analysis, and there are now plenty of other stablecoin options on the market. 

Seeing the infinite benefits of digital currency transactions and blockchain technology, like speed, transparency and low fees, many companies around the world have created their own version of the stablecoin, mostly improving on the previous release. These coins have proven to be invaluable with businesses and retail merchants around the world.

Today, the two biggest stablecoins on the market are Tether (USDT) and USD Coin (USDC). One can argue whether these are "safe haven" assets, but one cannot deny that these tokens hold most of the advantages that digital currencies hold while considerably diminishing the unpredictable market swings. 

In our attempt to better understand the concept, let's take a look at the two biggest stablecoins.

Tether (USDT) vs USD Coin (USDC)

Below we explore the two multi-billion-dollar market cap stablecoins, while they both provide the same service in terms of a digital currency, the companies behind them operate quite differently.

What Is Tether (USDT)?

As mentioned above, Tether is the first stablecoin to enter the market. Launched in 2014, the network was initially built on the Ethereum blockchain but is now compatible with a number of other networks. 

Note that the Ethereum-based USDT cannot be traded as a TRON-based token, coins need to stick to their respective blockchain networks as this is how the transactions are processed. 

It wasn't long before USDT was listed on the top exchanges, and included in dozens of trading pairs. 

Tether Limited have since released a Euro-based stablecoin as well as Tether crypto coin pegged to the price of gold. The downside to Tether falls on the company's reputation surrounding transparency and reserve funds. 

There have been several court cases where individuals and regulatory bodies have called for transparency surrounding the funds held in reserves. Tether has since provided access to this information but is yet to go through a third party audit. Regardless, Tether holds the third biggest market cap (at the time of writing). 

What Is USD Coin?

USD Coin is a stablecoin created by the Centre Consortium, an organisation made up of crypto trading platform Coinbase and Circle, a peer to peer payment platform. It launched in 2018 as an ERC-20 token and has since climbed the ranks to be in the top 5 biggest cryptocurrencies based on market cap. USD Coin is available on the Ethereum blockchain, as well as Solana, Polygon, Algorand and Binance Smart Chain networks. 

The significant bonus that USDC holds over its biggest competitor, USDT, is that the coin is regularly audited by a third-party institution. These audits are made public, allowing any user to verify the authenticity of their USDC value each month. Since launching USDC, Coinbase has removed USDT from its platform. 

Which Is Better: USDT vs USDC?

Due to the fact that these respective companies are holding the dollar-equivalent value in reserves, these two digital currencies are considered to be centralized, while the rest of the cryptocurrency market holds a decentralized nature. As the demand for digital currencies increases, it is likely that these two stablecoins will only continue to grow.

When looking for a stablecoin, these are two mos recognised options. When deciding which are the better of the two, consider what you will be using these for, and which networks you would ideally like to trade through.

Users can both buy and sell USDT and USDC directly through the Tap app. Simply create your account, complete the KYC process and deposit funds into your digital wallet. Manage your entire crypto (and fiat) portfolio from one convenient, secure location.