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stablecoin
What does stablecoin mean?
A cryptocurrency designed to hold a steady value by pegging to an asset like the US dollar, used for trading, saving, and moving value without volatility. Examples include USDC and USDT.
"I parked my profits in a stablecoin to sit out the volatility."
Origin
Crypto term for price-stable tokens; category grew with Tether and later USDC and DAI.
Frequently asked questions
What is a stablecoin?
It is a cryptocurrency designed to hold a steady value by pegging to an asset like the US dollar, avoiding the volatility of coins like Bitcoin.
What are examples of stablecoins?
Common ones include USDC, USDT (Tether) and DAI, most of which aim to stay pegged to one US dollar.
Why do people use stablecoins?
They let traders lock in value, save, and move money on-chain without exposure to the price swings of volatile cryptocurrencies.
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