Bitcoin Vs Tether — Selecting your Base Currency

Cryptohopper
5 min readMay 16, 2019

Unstable vs. Stable coins — the main battleground for crypto. Both share in common that they use blockchain technology, but differ fundamentally in ideology. Which should you choose for your base currency?

Stable coins vs unstable coins?

ETH/XRP/LTC vs USDT/TUSD/USDC?

…Which type should you use as a base coin?

These are questions most of our users have when they first start trading. As it turns out, there are benefits and drawbacks to both types.

In traditional markets, such as indexes, currencies or commodities, setting a base currency is not really much of a contested question. Traders often don’t wonder whether they should trade from Euros, Dollars or Yen. Most just trade with the currency that they own, or the currency that has more liquidity. In traditional markets, any given choice will also be a relatively stable currency. In crypto trading, this last characteristic and many more unique features are what sets the coins apart.

In this blog, we will narrow the discussion down to the coins that best represent both types of coins. In one corner of the ring, we can find USDT, defending stable coins, and in the opposite one BTC, for unstable coins. Overall, only 12% of Cryptohopper users use stable coins as their base coins, but that shouldn’t shape your decision. After reading this blog you will have a solid understanding of the pros and cons of each type and a good idea of which type you want to select as your base currency on Cryptohopper!

Background

Bitcoin is the first and definitely the most popular cryptocurrency. It was created by the mysterious Satoshi Nakamoto in 2009 as the first ever electronic, peer-to-peer, decentralized currency.

The latter characteristic has harnessed its reputation as being revolutionary to the pre-existing financial system. Theoretically, if Bitcoin became the leading currency, the world as we know it will be fundamentally different. According to the principals of Bitcoin, power would leave the hands of the centralized figures (such as government institutions and banks) and the world would become more equal as financial control would flow into the hands of the people.

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