What is a Stablecoin?
A stablecoin is a type of cryptocurrency that utilizes blockchain technology and has its value pegged to another asset, such as fiat currency or gold. This means that the price of the coin will remain relatively stable compared to other cryptocurrencies with more volatile prices. The stability of these coins makes them attractive for investors who are looking for less risk in their investments, as well as people who want to use them as an alternative form of payment due to their reliability. They can also be used to facilitate cross-border transactions without having to worry about exchange rate fluctuations. There are several types of stablecoins available on the market today, including fiat-collateralized, crypto-collateralized, and non-collateralized coins.