Fiat-Pegged Token Market Grows Modestly
The stablecoin economy experienced growth in October after several consecutive monthly declines. A total of $608 million was added to the fiat-pegged token market, bringing its valuation to approximately $123.66 billion. However, despite the overall increase, six stablecoins out of the top ten saw reductions in their supply during the month.
Tether Leads the Charge
Tether (USDT), the largest stablecoin by market capitalization, experienced a 1.9% increase in its supply, reaching a market valuation of approximately $84.98 billion. It accounted for more than 27% of the total global trade volume, with $19.79 billion in trades conducted over the past 24 hours.
Other Stablecoins Experience Supply Reductions
Over the past 30 days, Circle's USD Coin (USDC) witnessed a 3.4% reduction, resulting in a market valuation of $24.50 billion. MakerDAO's DAI, the third-largest stablecoin, experienced a 3% reduction, standing at $3.72 billion. TrueUSD (TUSD) saw a decrease of 3.1% in its supply, currently resting at $3.34 billion. The most significant reduction was observed in BUSD, with a substantial 13.1% of its supply redeemed, bringing its market valuation below $2 billion to $1.95 billion.
October's Standout: First Digital USD (FDUSD)
The most notable increase in supply was seen in First Digital USD (FDUSD), which experienced a 45.1% rise. With a total supply of 544.26 million FDUSD tokens, it has become the eighth-largest contender in the stablecoin market. On the other hand, Pax Dollar (USDP) saw a 6.7% reduction, and Liquity USD (LUSD) faced a decrease of 12.6% over the past 30 days.
In addition, PayPal's recently introduced dollar-pegged token has quickly become the 15th largest stablecoin.
What are your thoughts on the stablecoin action in October? Share your opinions in the comments section below.
Frequently Asked Questions
Are precious metal IRAs a smart investment?
How willing you are to risk your IRA account losing value will decide the answer. These are good if you have $10,000 of cash and don't expect them grow quickly. These might not be the best options if you're looking to invest in assets that have the potential to rise in value (gold) and plan to save for retirement for many decades. These fees can reduce any gains.
How does an IRA for gold and/or silver work?
You can make investments in precious metals (such as gold or silver) without having to pay tax. They are a good investment option for those who wish to diversify their portfolios.
If you are older than 59 1/2, interest earned from these account does not attract income tax. You also do not have to pay capital gains tax on any appreciation in the account's value. However, there are limitations on how much money you can put into this type of account. The minimum amount that you can invest is $10,000. If you are less than 59 1/2, you cannot invest. Maximum annual contribution: $5,500
If you die prior to retirement, your beneficiaries may not receive the full amount. Your estate should contain sufficient assets to cover your account's remaining balance after paying any other expenses.
While some banks offer gold and/or silver IRA options to their customers, others require them to open a regular brokerage bank account that allows you to purchase certificates or shares.
How much of your portfolio should be in precious metals?
Protect yourself against inflation by investing in physical gold. This is because when you invest in precious metals, you buy into the future value of these assets, not just the current price. Your investment will increase in value as the prices rise.
Gains will be taxed if you keep your investments for at minimum five years. And if you sell them after this period, you will have to pay capital gains taxes. Our website has more information about how to purchase gold coins.
Can a gold IRA earn any interest?
It all depends on how much you invest in it. If you have $100,000 then yes. You can't if you have less than $100,000
The amount of money you put into an IRA determines whether or not it earns interest.
If you have more than $100,000 in retirement savings each year, you might consider opening a regular brokerage accounts.
You will likely earn more interest there, but you'll also be exposed to riskier investments. You don't want to lose all of your money if the stock market crashes.
However, if you only put in $100,000 per annum, you'll probably be better off with an IRA. At least until the market recovers.
Do you need to open a Precious Metal IRA
This depends on what your investment goal is and how risk-tolerant you are.
If you plan to use the money for retirement, you should open an account now.
It is likely that precious metals will appreciate over the long-term. You can also diversify your portfolio with them.
Additionally, silver and gold prices tend to move in tandem. This makes them an excellent choice for investors in both assets.
You should not invest in precious-metal IRAs if it is not your intention to use your money for retirement, or if you are unwilling to take any risks.
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
How to Decide if a Gold IRA Is Right for You
Individual Retirement account (IRA), is the most widely used type of retirement plan. IRAs are available through employers, banks, mutual funds, and financial planners. Individuals can contribute as much as $5,000 per year without any tax consequences. This amount can be deposited into any IRA, regardless your age. However, certain IRAs have limits on the amount you can deposit. You cannot contribute to a Roth IRA if you are under 59 1/2 years of age. Contributions must be made by those under 50 years old. In addition, some people who work for their employer may be eligible for matching contributions from their employer.
There are two main types: Roth and traditional IRAs. Traditional IRAs can be used to invest in stocks or bonds, as well other investments. Roth IRAs are only available for after-tax dollars. Roth IRA contributions can be made without tax, but they will still be subject to taxes if you withdraw from it. Some people combine both of these accounts. Each type of IRA comes with its own pros and cons. How do you choose the best type of IRA for you? Below are three important things to keep your mind on:
Traditional IRA Pros
- Each company has its own contribution options
- Employer match possible
- Can save more than $5,000 per person
- Tax-deferred growth until withdrawal
- You may have income restrictions
- Maximum contribution limit: $5,500 per annum (or $6,500 for married filing jointly).
- The minimum investment required is $1,000
- You must start receiving mandatory distributions after age 70 1/2
- For an IRA to be opened, you must have at least five-years-old
- Transfer assets between IRAs cannot be done
Roth IRA pros
- No taxes owed when contributing
- Earnings increase tax-free
- No minimum distribution required
- The only options for investing are stocks, bonds, or mutual funds
- There is no maximum amount limit
- There are no limitations on the ability to transfer assets between IRAs
- Open an IRA if you are 55 years or older
Considering opening a new IRA, it's essential to know that not all companies offer the same IRAs. Some companies allow you to choose between a Roth IRA or a traditional IRA. Some companies will allow you to combine both. There are different requirements for different types. Roth IRAs don't have a minimum capital requirement. Traditional IRAs only require a $1,000 minimum investment.
The bottom line
The most important factor when choosing an IRA is whether you plan to pay taxes immediately or later. If you are retiring within ten year, a traditional IRA could be the right option. If you are not able to retire within ten years, a Roth IRA may work better for you. It doesn't matter what, it is a good idea consult a professional to discuss your retirement plans. An expert can advise you on the best options and how to navigate the market.
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