What is a stablecoin?

Stablecoin is a fixed-price cryptocurrency whose market value is attached to another stable asset. Differing from normal cryptocurrencies, stablecoin can be pegged to assets such as certain fiat currencies that can be traded on exchanges and also can be pegged to other types of assets, including precious metals, such as gold, and even other cryptocurrencies.

Stablecoins let users enjoy the benefits of digital currencies based on blockchain, including security, privacy, low fees and transparency, while helping to alleviate the problem of extreme price volatility faced by most traditional cryptocurrencies.

People who use stablecoins don’t have to worry about the day-to-day fluctuations of traditional cryptocurrencies.

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