TrueUSD(TUSD) Complete Guide - Everything About Stablecoins
Hello! Today, we're going to learn more about TrueUSD(TUSD). As the cryptocurrency market grows day by day, interest in stable digital assets is also increasing. I'll explain it in an easy way so that even those who are new to cryptocurrency can understand. π
Introducing TrueUSD(TUSD)
TrueUSD is a stablecoin pegged to the US dollar, and 1 TUSD is designed to always maintain the value of 1 USD. This minimizes price volatility and enables stable trading in the cryptocurrency market. TUSD supports transparent and safe trading based on blockchain technology.
In particular, it plays a role in reducing the stress experienced by many investors due to the high volatility of the cryptocurrency market. When major cryptocurrencies such as Bitcoin and Ethereum fluctuate by more than 10% a day, TUSD serves as a stable haven. These characteristics have made it popular among both institutional and individual investors.
π‘ Good to know: A stablecoin is a cryptocurrency whose value is pegged to a specific asset (usually fiat currency).
TrueUSD History and Background
TrueUSD was launched in 2018. At that time, as the need for stablecoins grew, many investors were looking for a stable asset. TUSD was developed by a company called TrustToken, which is regularly audited to ensure the transparency of the asset. In this regard, TUSD has established itself as a reliable stablecoin.
2018 was a very important year for the cryptocurrency market. As Bitcoin soared to $20,000 in late 2017 and then plummeted, market participants felt the urgent need for a stable digital asset with no volatility. The emergence of TUSD in this market situation can be seen as very timely.
The TrustToken team has aimed for complete transparency from the beginning. While other stablecoins are under suspicion for their reserves, TUSD has gained market trust by disclosing its reserve status in real time and publishing monthly audit reports.
How TrueUSD Works
TrueUSD utilizes blockchain technology to ensure that real dollars are deposited whenever a user issues or exchanges TUSD. In other words, when you purchase TUSD, the corresponding dollars are stored in TrustToken's bank account, which guarantees the value of TUSD. Thanks to this structure, TUSD can always be linked to dollars at a 1:1 ratio.
To explain more specifically, the issuance and burning of TUSD is completely automated. When a user deposits dollars through a smart contract, TUSD is automatically issued, and conversely, when TUSD is burned, the corresponding dollars are returned to the user. All of these processes are recorded on the blockchain and can be verified by anyone, ensuring transparency.
In addition, TUSD follows the ERC-20 standard of the Ethereum blockchain, making it compatible with various DeFi (decentralized finance) projects in the Ethereum ecosystem. This is one of the important features that greatly increases the usability of TUSD.
Various uses of TrueUSD
TrueUSD can be used for various purposes. The most common use is trading on exchanges. Many exchanges support TUSD, so it can be used as a stable asset when trading with other cryptocurrencies. TUSD can also be used as a means of payment, and can be useful in overseas remittances and e-commerce.
In particular, the utilization of TUSD is increasing in the DeFi ecosystem. TUSD can be used as collateral or as a tool to generate income in liquidity mining, staking, and lending platforms. For example, you can deposit TUSD on lending platforms such as Compound or Aave and receive interest, and you can also provide liquidity on DEXs such as Uniswap to earn fee income.
Companies have also begun to utilize TUSD. In particular, they are using it to reduce exchange rate risk and save remittance costs in cross-border B2B transactions. It is gaining a lot of attention because it allows you to move funds much faster and cheaper than traditional SWIFT remittances.
Major TrueUSD Exchange Guide
TUSD can be traded on several exchanges. TUSD can be easily found on major exchanges such as Binance, Huobi, and Bittrex. These exchanges increase the liquidity of TUSD and help users trade it easily. When trading TUSD on an exchange, you should always consider transaction fees and liquidity.
TUSD can also be found on domestic exchanges. Major exchanges such as Upbit, Bithumb, and Coinone support TUSD trading, making it easily accessible to Korean investors. However, each exchange may support different trading pairs, so it is a good idea to check in advance before making a desired trade.
π Exchange Selection Tips: When choosing an exchange, consider trading volume, fees, security, customer service, etc. In particular, it is important to choose an exchange with sufficient liquidity for TUSD.
You can also trade TUSD on decentralized exchanges (DEXs). You can exchange TUSD for other tokens on Uniswap, SushiSwap, PancakeSwap, etc., and sometimes you can get better prices than on centralized exchanges.
Active TrueUSD Community
TrueUSD is actively discussed in various communities. There are many users sharing information and tips about TUSD on platforms like Reddit, Telegram, and Discord. These communities can be a great help in getting the latest news and investment strategies about TUSD.
In particular, the development team directly participates in the official TrustToken Telegram channel to answer users' questions and share the latest updates. We also provide real-time updates through the @TrustToken account on Twitter, so if you follow us, you can quickly receive useful information.
The Korean community is also becoming more active. There is an increasing number of users sharing information about TUSD in Korean on Naver Cafe, DC Inside, and open chat rooms. For those who find English burdensome, it is also a good idea to utilize these Korean communities.
Guide to Choosing a Safe TrueUSD Wallet
You need a wallet to safely store TUSD. TUSD is an ERC-20 token issued on the Ethereum blockchain, so you can use an Ethereum wallet. There are various options such as Metamask, Ethereum wallets, and hardware wallets, so it would be good to choose a wallet that suits your needs.
For beginners, I recommend Metamask. It is easy to install, intuitive to use, and compatible with most DeFi platforms. However, since Metamask is an online wallet, there is a risk of hacking. So, when storing large amounts, it is safer to use a hardware wallet such as Ledger or Trezor.
For those using it on mobile, consider Trust Wallet or the MetaMask mobile app. In particular, Trust Wallet is a wallet developed by Binance that is highly secure and supports a variety of tokens.
π Wallet Security Precautions: Never store your wallet seed phrase (recovery phrase) online. Write it down on a piece of paper and store it in a safe place. It is also important to update your wallet software regularly.
Things to know when investing in TrueUSD
TUSD is a stable asset, but there are some things to keep in mind when investing. First, even though the value of TUSD is always linked to 1 USD, there may be price fluctuations on the exchange, so be careful. Second, the security of the wallet that stores TUSD is also important. It is recommended to choose a safe wallet to prevent hacking or fraud.
In particular, you should be aware of the risk of defegging. Although TUSD has maintained a stable 1 USD so far, there is a possibility that it may temporarily deviate from 1 USD in extreme market situations. In such situations, it is important not to panic and to make a judgment based on sufficient information.
You should also consider regulatory risks. As governments around the world are strengthening regulations on stablecoins, there may be restrictions on the use or trading of TUSD in the future. Please keep an eye on these changes when making investment decisions.
Lastly, please remember that TUSD is not a yield-generating asset. If you simply hold it, its value may actually decrease when inflation is taken into account. Therefore, you may want to consider ways to generate additional income, such as staking or providing liquidity through DeFi platforms.
Conclusion
That's all for a detailed look at TrueUSD (TUSD). TUSD is a stable stablecoin that is an attractive digital asset that can be used for a variety of purposes. It serves as a stable haven, especially in the volatile cryptocurrency market, and its utilization in the DeFi ecosystem continues to increase.
However, sufficient learning and careful judgment are required before investing or using it. Please keep an eye on market changes, learn how to use a safe wallet, and use it according to your investment purpose. I expect that interest in the development of TUSD and the stablecoin market will increase in the future.
If you have any questions, please leave a comment at any time! We will be able to make better investment decisions by learning and sharing information together. π
π Learn more: Cryptocurrency investment carries high risks. Please conduct sufficient research and learning before investing, and invest within your risk tolerance.