What is a stablecoin?

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A stablecoin is a cryptocurrency designed to maintain a fixed value, usually pegged to a fiat currency like the US dollar. Unlike Bitcoin or Ethereum, which can be highly volatile, stablecoins aim to provide price stability, making them ideal for trading, payments, or saving in crypto.

Popular stablecoins include USDT, USDC, and DAI. They can be collateralized with fiat, crypto, or algorithms that adjust supply automatically.

Use Case: Stablecoins are often used for fast cross-border payments, DeFi lending, and as a hedge against crypto market swings.