What is a stablecoin?
A stablecoin is a cryptocurrency that is pegged to the price of a government-issued currency like the US dollar or a commodity like gold.
This makes the price of that cryptocurrency dependent on the price of the government-issued currency or commodity, so the price of the cryptocurrency will rise or fall as the price of the currency rises or falls.
This is done to help the cryptocurrency keep a relatively stable price, which is why it’s called a stablecoin.
The price of a stablecoin usually fluctuates much less than the prices of other cryptocurrencies.
What's an example of a stablecoin?
BUSD (or Binance USD) is a stablecoin backed by the US dollar.
You can think of it as the digital version of the dollar. At any time, 1 BUSD is equal to $1.
Should I be interested in buying BUSD?
Yes, you should be.
BUSD isn’t only versatile like other cryptocurrencies, it also has the stability of the US dollar which makes it a good way to protect your money from local inflation.
And if you’re just getting into cryptocurrency trading, BUSD is the low-risk way to begin.
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