What is a Stablecoin?

Stablecoins are cryptocurrencies that claim to be ‘stable’ or ‘pegged’ to a fiat currency. They often come with a promise that they will be backed 1:1, or somehow anchored to the value of the underlying asset.


The idea is that this makes them more reliable than other cryptocurrencies, which can go through wild swings in value.

What is a Stablecoin?

A stablecoin is a cryptocurrency which claims to maintain its value relative to another asset or currency. This means it could be pegged to the US dollar, for example, and as long as you know that 1 USD/stablecoin = 1 USD then you can use this token as a proxy for dollars without having to actually buy or sell them directly.



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