Cryptoacademy week 7:- home work post for @yohan2on

Hey there, this is @prakhar9675 here and this post is against the work given by @yohan2on on stable coins.
In this post we will discuss about the True USD or TUSD

So let's get started

What is stable coin

So stable coin are those coins whose price remains nearly constant and this minimize the volatility of price change of cryptocurrency.

Source

These are of 4 type. For all details you can read my previous post
Link

What is true USD

True USD is a stable coin founded in 2018. This was issued only to some invester at that time. The ratio between this and USD was 1:1. This means for every 1 dollar, invester were given 1 TUSD.

Source

This cryptocurrency was fully backed by USD. this means this is a fiat backed cryptocurrency.

It minimize the volatility of price fluctuation In the cryptocurrency world. As we know that in cryptocurrency world, the price of cryptocurrency is very unstable. For example you can see the price of bitcoin over the last 1 week. It's completely unstable. Its price has been decreased to 50000 USD in some days. So one may suffer loss. To avoid this, this stable coin was founded.

Source:- binance app

How TUSD is a stable coin

We all know that TUSD is a stable coin, and by seeing these graphs and 24 hours low and high of price of this coin you yourself can conclude that this is a stable coin.

^{This is the graph of price of TUSD in INR.}

^{this is the 24 hours low and 24 hours high of TUSD}

Source

^{this is the price of TUSD against USDT at binance.}

Usage of True USD

Now a days, the usage of True USD is very wide and spread. Many corporate partners use this to trade and many people use it for exchange.
Some usage of True USD are given bell

1. For corporate use and financial services.
   This coin can be easily used for transferring funds from one place to another without any risks.
   
   Source
   For example I own a company and I am in partnership with another company, then in this partnership, a company might have to send assets to another one. Then sending money through banks is a quite lengthy process and transferring cash is very risky. To avoid these both, i will prefer the transfer of money through true USD. By using this, I can avoid lengthy and expensive process of bank transfer and risky process of cash transfer.

2. For exchanging coin
   If you invest money in cryptocurrency, you can easily understand that when we sell any crypto currency, then to avoid volatility, we transfer the fund into the fiat account and next time when we want to buy any coin, then we have to pull money out of Fiat account. And in this process, a certain amount of fees a deduced from your account.

So by using true USD (or any other stable coin) you don't have to transfer the money to your fiat account, just to avoid volatility.
As this coin is very stable, you can exchange that with your cryptocurrency. And next time when you want to buy any coin, just exchange this with that coin.

how and from where to obtain this coin.

This coin is available at many exchanges. For example binance, hotbit, coinsbit and many more.

To obtain this from binance, just go to binance app and tap on option market and then search for TUSD and then choose your suitable pair and exchange them.

pro's of TUSD

There are many advantages of this:-

1. The biggest advantage of this coin is that it is very stable and backed fully by USD
   
   Source

2. By using this, you can easily swap TUSD with many other coins directly. You just have to go to exchange platform and search for your required pair and then just swap that.

3. it has legal protection. So this can be used to trade, exchange and pay anyone.

Cons of TUSD

1. One of the biggest disadvantages of this is that it is not decentralised. This is centralised this means the whole power vested in the company. They can block and mute user without giving any reason. (Usually this is not done but it is possible)
   
   Source
2. This is backed by USD so this is affected by the economy of a country. Whenever the economy (or you can say dollar) is affected by any reason, this coin gets affect.

Conclusion

TUSD is a very stable coin and it has a very wide range of usage. We have discussed some of its usage and there are certainly many more. Every person can use it for many works to do.

Cc
@yohan2on
@steemcurator01
@steemcurator02