What is a stablecoin?

A stablecoin is a cryptocurrency that is tied to a stable asset in order to maintain a stable price.

The price does not depend on the supply and demand of the token, unlike other cryptocurrency tokens. It is designed to maintain a stable price, just like the asset it is tied to.

Stablecoins can be tied to:

  • Paper (fiat) money
  • Cryptocurrency
  • Algorithms (smart contract)

Popular Stablecoins include:


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