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How to Buy TrueUSD (TUSD) in Canada

In crypto investing, often we only hear about the following crypto coins and tokens:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Tether (USDT)
  • USD Coin (USDC)
  • Cardano (ADA)
  • Dogecoin (DOGE)
  • Solana (SOL)

Unsurprisingly, these cryptocurrencies also have the largest market capitalizations. This outlines a general rule of thumb In the crypto industry; that those with the largest market caps are often the ones with greatest popularity and reach.

On the other hand, we seldom hear about cryptocurrencies that are not in the top 10. Or, if it’s not Bitcoin or Ethereum, we rarely hear about it. As a result, only few people invest in less popular cryptocurrencies and stablecoins (cryptocurrencies with a stable price, usually equal to 1 USD). But even lesser known crypto options like TrueUSD (TUSD) have their merits, and should be so easily forgotten.

Why choose and buy TrueUSD (TUSD)?

One of those cryptocurrencies and stablecoins that don’t get the spotlight is TrueUSD (TUSD). It’s a stablecoin with a value of one US dollar (1 TUSD = 1  USD).

Although right now it’s not among the top ten cryptocurrencies, it still has a huge market cap of more than 1.6 billion CAD. In addition, its 24-hour trading activity ranges in hundreds of millions of dollars. This means the transactions and the level of activity is high in TUSD. With this scale and level of activity, it can also mean that many investors are keeping an eye on TUSD (or other people keep using TUSD in their blockchain-based transactions).

Looking at those numbers (1.6 billion CAD market cap, trading activity worth hundreds of millions of dollars in a day), we can say that TUSD has a decent level of popularity among users and investors. Although Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) always take the spotlight and are the most mentioned in the news, other cryptocurrencies and stablecoins are still worth considering. It’s especially the case when you want to diversify your investment and spread the risks.

Moreover, TrueUSD is designed to be simple and transparent (one reason for its name, TrueUSD). It also doesn’t use a special algorithm (which was used by TerraUSD, also a stablecoin but still crashed). TUSD’s holdings are distributed in different bank accounts that belong to various trust companies. Fully backed by the US dollar (always 1 USD equals 1 TUSD), TUSD undergoes audits and regulatory compliance. It’s similar to conventional currencies that are under regular scrutiny from different organizations. This way, the cryptocurrency remains true and transparent to the investors and general public.

Pros and cons of TUSD

To better understand what TUSD is all about, let’s review and explore its pros and cons. This will help you decide whether TUSD is a smart investment for you.

TUSD pros

  • TUSD is a stablecoin (with a value that’s almost consistent and predictable)
  • Licensed and fully regulated in the US
  • TUSD undergoes regular monthly audits to ensure TUSD is fully backed by the US dollar
  • TUSD is secured by the Ethereum blockchain (users can store their TUSD tokens in a wide range of wallets)
  • Bank accounts that hold the US dollars (which back the TUSD) are insured (up to 250,000 USD)
  • Other tokenized currencies are also available (e.g. tokenized British pounds, tokenized Canadian dollars) under the TrustToken platform

TUSD cons

  • Users are required to complete AML (anti-money laundering) and KYC (Know Your Customer) requirements when they buy or redeem TUSD from the TrustToken platform (they create asset-backed tokens).
  • TUSD and other tokens and coins created by TrustToken are centralized (the platform can disable accounts and confiscate tokens when they see user violations)
  • Other stablecoins and cryptocurrencies are often more favored because of the two reasons above (e.g. developers and users might still prefer truly decentralized crypto coins and tokens)

With these pros and cons in mind, you might now want to buy some TrueUSD to temporarily hold your assets (and fewer worries about your assets suddenly losing value because TrueUSD is fully backed by the US dollar. Or, you might want to limit your TUSD assets and further diversify your crypto investment and buy other crypto assets (because TUSD is centralized, the central platform can confiscate the tokens anytime once they find a violation of the terms and conditions).

Should you buy TrueUSD (TUSD) now?

Because of TUSD’s price stability, should you consider it as a safe investment for now? A straight answer is that it’s all uncertain. This is true in most other cryptocurrencies and stablecoins available today. Remember what happened to Terra (LUNA)? It’s a stablecoin and yet its value rapidly dropped within days. Even a stablecoin is not immune from the dynamic and unpredictable nature of the crypto market.

Although investors know the risks, they still move forward and buy some TUSD or other stablecoins and cryptocurrencies. They easily and quickly do this by signing up to a major cryptocurrency trading platform and starting for the smallest amount possible. For example, here at Coinberry, investors can buy a cryptocurrency or stablecoin for as little as 50 CAD.

Using a crypto trading platform is the easiest way to get into crypto investing. Although there are several other ways on how to buy some crypto, these require some technical knowledge or multiple signups and setups to get started. In contrast, using a crypto trading platform only takes one signup and you get access to dozens of major crypto assets. This also makes it easy to manage your crypto investments (just one login and one dashboard to see it all).

Because TrueUSD (TUSD) is not as popular as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and other major cryptocurrencies, TUSD might not be available in the platform you choose. As a result, you might want to explore other crypto assets. Aside from Bitcoin, Ethereum, Tether, and USD Coin, you might also want to take a look at Cardano, Algorand, Avalanche, Cosmos, Dogecoin, Polkadot, Gala, Loopring, THORChain, Tron, Shiba Inu, and Uniswap. You can also find dozens of other popular cryptocurrencies that have a significantly long history and market capitalization.

If you want to start your crypto investing journey and have access to dozens of crypto assets, you can sign up at Coinberry. More than 220,000 Canadians have already found it easy to start buying crypto here. As a result, they have finally known what crypto investing is all about and learned more about its risks and opportunities.