BUSD or USDT? Which stablecoin is safer? - page 3.

dansus021

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Quote from: tvplus006 on July 26, 2022, 09:43:39 AM

Your concerns are not unfounded, since the security of BUSD directly depends on the security of the Binance exchange. But at the same time, you should remember that BUSD aud USDT are centralized stablecoins, unlike decentralized DAI. Thus, if you are a supporter of decentralization, then it would be logical to use decentralized stablecoins.

but the DAI itself backed by crypto stablecoin like usdt and USDC as far that I know

https://cdn.decrypt.co/resize/950/wp-content/uploads/2022/05/unnamed-7.png.webp

X-ray

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Quote from: Charles-Tim on July 26, 2022, 04:07:30 PM

Quote from: X-ray on July 26, 2022, 10:32:00 AM

USDT was not the safest. USDC and BUSD were safest stable tokens.

But USDT remain like USDC and BUSD in term of safety if they are all fiat backed stable coins.

The approval from NYDFS makes BUSD and USDC far better than USDT. I don't see that if USDT supporter/approved by regulators. What i can see from tether if this stable token was still making regulators remain anxious. In here approval from regulators are showing how capable the stable token is. The main aim by NYDFS to make the stable token as a safe innovation to be used by its citizen.

Xal0lex

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Neither BUSD nor USDT are the safest assets. Both assets are centralized, do not fully back their tokens with dollars, are subject to censorship in terms of address blocking, and are subject to peg loss during market turmoil. When it comes to centralized assets, the word "security" is out of place here. If we are talking about secure stablecoin, it is only about DAI and similar assets, but definitely not about USDT, especially on the Ethereum blockchain.

Charles-Tim

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Quote from: fzkto on July 26, 2022, 09:14:57 AM

But personally I still trust USDT, for me it is time tested.

There is nothing better than to have your money in fiat, USDT can be freezes on noncustodial wallet, so people that have it do not have full control just like fiat but fiat is secure than stable coins.

Quote from: X-ray on July 26, 2022, 10:32:00 AM

USDT was not the safest. USDC and BUSD were safest stable tokens.

But USDT remain like USDC and BUSD in term of safety if they are all fiat backed stable coins.

X-ray

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You can't compare UST with some stable tokens like BUSD and USDC. UST has been made as algorithmic stable token that peg on its native blockchain coin called luna. It's not fully backed by fiat money. USDT was not so transparent and for me USDT seems to be a manipulative stable token.

What mistake? So far binance was always operating perfectly. It's become transparent and its stable token backed by the fiat money.

Using stable token that issued by profit based entity was far better caused by it has real reserved funds to backed the stable token.

USDT was not the safest. USDC and BUSD were safest stable tokens.

That's why both were approved by NYDFS https://www.dfs.ny.gov/reports_and_publications/press_releases/pr1909051

tbct_mt2

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BUSD and USDT, they are both safely, the most safest amongst many stable coins on the market. List of stablecoins from Coingecko.

They are safest stable coins because they have real fiat currencies in their reserves, to back their pegs.
They are good because they have highest trading volumes.

However, always avoid to put all your eggs in one bag. Don't put all your stable coin into either BUSD or USDT. You should decentralize them to both USDT, BUSD and one or two more stable coins. Avoid algorithm stablecoins that are not safe with their concept and current algorithms.

TryNinja

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Quote from: Synchronice on July 26, 2022, 03:12:09 AM

I'm afraid that Binance has so huge influence on the market that if it makes mistake, BUSD may get fucked.

Quote from: fzkto on July 26, 2022, 09:14:57 AM

BUSD belongs to Binance. So all these tokens are owned by exchanges, and if something happens to them, these stablecoins could crash.

This is wrong.

Binance does not "own" BUSD. The stablecoin is administrated by Paxos (paxos.com), whichs offers whitelabel services so other exchanges or companies (like Binance with the BUSD, or Huobi with the HUSD) can have their branded stablecoin: https://paxos.com/stablecoin-and-payments

If Binance or Huobi breaks, BUSD and HUSD will be fine.

tvplus006

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Quote from: Synchronice on July 26, 2022, 03:12:09 AM

...At the moment I think that BUSD and USDT are the safest stablecoin pairs for regular cryptocurrency trading but I'm afraid that Binance has so huge influence on the market that if it makes mistake, BUSD may get fucked...

Your concerns are not unfounded, since the security of BUSD directly depends on the security of the Binance exchange. But at the same time, you should remember that BUSD aud USDT are centralized stablecoins, unlike decentralized DAI. Thus, if you are a supporter of decentralization, then it would be logical to use decentralized stablecoins.

Ansu5801

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No doubt in these option, you should go for busd because it is highly backed by moat famous and number one exchnage which is also a centralized exchange known as Binance, they have full reserves of their busd stable coin, while usdt have trillion of supply and there is no chance in it that they had full reserve according to their current usdt supply,

Tony116

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USD is an algorithmically stablecoin, backed by cryptocurrencies, BUSD and USDT are backed by USD so both are stablecoins but they are not the same. In addition to BUSD and USDT, we also have USDC which is also a stablecoin that is being used a lot in recent times. Personally, I see that these 3 stablecoins are not much different, they are all centralized and controlled by the company, so it can be said that the risk is the same. You can use 1 of the 3 types above don't necessarily compare because they don't have much difference.

fzkto

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I think these stabelcoins are equally safe, if you can call it that. USDT belongs to Bitfinex, BUSD belongs to Binance. So all these tokens are owned by exchanges, and if something happens to them, these stablecoins could crash. But personally I still trust USDT, for me it is time tested.

passwordnow

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Dai as the option of being decentralized but relying upon the dollar-pegged stablecoins, despite the issues that USDT has taken. We can say that volume speaks for itself. I guess just put it on this logical thinking that anything with these stablecoins has some possibility that all of them can go wrong. CMIIW, all of these centralized stablecoins are being backed up by huge exchanges.

ryzaadit

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Quote from: _act_ on July 26, 2022, 03:34:32 AM

-snip

Agree.

As long as not choosing any stablecoin backed like UST system should be fine and stablecoin backed with FIAT (USD) still a strong stable coin until now. A long time ago, my local exchange have using my fiat currency (So it's really guaranteed).

But, now they created into a token to make it easy. USDT with fiat backup still recommended until now.

ololajulo

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I think BUSD and USDT are equally safe with nothing to compare with USDC, the idea behind tying to volatile coin is very unsafe and had been proven, although it is new and a lesson to teach any investor for the future. Talking about how the value is preserved for so many years now, however, there could be a case of slight dip which usually do not go below -5%. It has been suggested that fiat tie with stable is the safest. We also need to be careful with new projects in stable coin straight away, this has been the highest/oldest form of fraud in cryptocurrency with printing of virtual currency without government's involvement.

Note3

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I think that none of them is safest maybe even all stablecoins none of them are safe, all of them can end up like UST the value is no longer 1:1 but 1:0.5 or even smaller than that, if you ask what can make USDT be like UST it may now seem impossible just like what happened to UST before it is impossible to have a value this low, because stablecoins are centralized people who have power over them can do anything for their benefit

Mpamaegbu

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Quote from: Synchronice on July 26, 2022, 03:12:09 AM

BUSD may get fucked.

I had to single that comment out to let you know anything can "get fucked" in this crypto space. That done, now to the question. The two stablecoins you mentioned are the only ones I've been using. I started with Tether when the stablecoin option became a thing and then moved to BUSD. It's my favourite now because I do trade often on Dex using the Trust Wallet Dapp. For me, BUSD is ok. I tend to tie it to BNB. Seeing how BNB has come to stay, I believe BUSD too won't go rogue since both are from the same platform.

_act_

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If there is option to use fiat like US dollars to trade, it will be the better option to go for, the coins are backed by US dollar or fiat. For algorithmic stable coin like UST, never go for that type of stable coins, they are often known to lose their peg.

On exchanges, there are few options to go for, I would have preferred Dai, but on most exchanges that I know, the two most common stable coins are USDT and USDC which are also the two stable coins with the highest marketcap. Traders do not have options than to go for the coins to trade, but fiat would be better. BUSD is a common stable coin used for trading pair on Binance.

Coins like USDT and USDC are fiat backed, unlike algorithmic stable coin, they have not lost their peg with the fiat they are backed with, unlike algorithmic stable coins, they are almost stable with US dollar price.

The stable coins can be freezes by the company that created them, but it is exchanges that we are talking about, traders do not consider that because using exchanges also means that you do not have complete control over your own coins.

Synchronice

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TerraUSD is a stablecoin that previously had a value of "1 USTC = $1". At the moment it worths $0.03
Crypto market is very unpredictable and dangerous, every company is chasing power and influence on the market but the problem is that if any of them make mistake, their product and the assets of millions of people fail.

At the moment I think that BUSD and USDT are the safest stablecoin pairs for regular cryptocurrency trading but I'm afraid that Binance has so huge influence on the market that if it makes mistake, BUSD may get fucked.
USDT seems to be the safest, am I right? What are the possibilities that USDT may end up like TerraUSD?

Which stablecoin do you suggest for crypto/usd trading?

Topic: BUSD or USDT? Which stablecoin is safer? - page 3. (Read 479 times)