A stablecoin is a type of cryptocurrency designed to maintain a relatively stable value.
Unlike many other cryptocurrencies, whose prices can fluctuate significantly, stablecoins are typically pegged to the value of an external asset, such as a fiat currency.
Pegged to a real-world asset
Many stablecoins are pegged to the US Dollar (USD), which helps keep their value close to 1 USD.
This makes them less volatile than many other cryptocurrencies.
What are stablecoins used for?
Stablecoins are commonly used to:
Transfer digital value.
Reduce exposure to market volatility.
Make payments or move funds between different platforms.