Simply put, a stablecoin in cryptocurrency is a token which has its value pegged to the price of a national currency in order to combat its volatility. There are several types of stablecoins and numerous options and different projects which offer the same fundamental idea of a cryptocurrency coi...
What is a stablecoin? PayPal Editorial Staff January 5, 2024 4 mins read A stablecoin refers to a type of cryptocurrency that has a stable value. Unlike other types of cryptocurrencies — which can be volatile — the price of stablecoins usually doesn't change over time. That's because ...
Two of the most popular stablecoins are USD Coin (USDC) and Tether (USDT), which are pegged to the U.S. dollar. The dollar is significantly more stable than a cryptocurrency like Bitcoin or Ether. However, you should note that neither of these coins is backed by the United States govern...
Stablecoins are an attempt to create acryptocurrency tokenwith a stable price. This stability is commonly achieved by pegging the token to an asset such as gold orfiat currency. Crypto volatility,both long term and short term, has made coins largely considered a speculative investment. Stablecoins...
cryptocurrency, but there’s a catch: by the time you reach the counter, the value of yourcryptohas dropped. Suddenly, your simple purchase costs more than you expected. Volatility is a major obstacle in crypto’s quest to become a payment method – but stablecoins aim to provide a ...
What Is a Stablecoin? By its very nature, cryptocurrency floats in value. Because it’s a decentralized asset, the market establishes the value entirely. That is, what one party is willing to pay another in exchange for the crypto involved in the transaction. ...
Readers like you help support MakeUseOf. When you make a purchase using links on our site, we may earn an affiliate commission. Read More. Recommended What Is a Cryptocurrency Stablecoin? Facebook Stablecoins are meant to protect against the volatility of regular cryptocurrencies, but how do ...
The price of bitcoin, ether and other popular cryptocurrencies plunged this week as investors trimmed their losses and sought refuge in less volatile assets. One catalyst for this week's rout are growing concerns about so-called stablecoins, another kind of cryptocurrency that is supposed to ...
EU's definition, are tokens that try to stabilize their value using the value of another asset or right.5This covers all crypto-assets whose value is tied to or backed by other assets, such as officially backed currencies like the euro or the dollar—many people know this as a stablecoin...
Stablecoins are a type of cryptocurrency linked to an asset like the U.S. dollar that doesn’t change much in value.