#StablecoinSurge What are stablecoins and what should you know about them?

Stablecoins are a type of cryptocurrency that maintains a stable value by linking it to another asset. Their goal is to reduce the volatility of popular cryptocurrencies, such as Bitcoin.

The main feature is that they can be used to pay for goods and services. In addition, they allow purchases on cryptocurrency exchanges.

The good thing is that they can be transferred using distributed ledger technology, also known as blockchain. This helps address their various financial services.

Some stablecoins are backed by fiat currencies, such as the dollar or the euro. There are also those backed by cryptocurrencies. Then there are those that use software algorithms to adjust the supply of the stablecoin.

Some of the most well-known stablecoins are USDT, which is backed by Tether. There is also USDC, managed by companies Coinbase and Circle. Finally, we can mention DAI, which is linked to the dollar but has a strictly crypto character.