#USStablecoinBill one of the characteristics of the digital currency market is its volatility, which is why #Stablecoins or stable coins were created. They are cryptocurrencies whose value is linked to that of another currency, commodity, or financial instrument, mainly the dollar, and their value fluctuates around $1.0 dollar.

These coins aim to provide an alternative to the high volatility of more popular cryptocurrencies, BTTC BTC among many others.

The virtue of stable coins is that they aim to address the volatility situation by promising to keep the value of the cryptocurrency stable:

Fiat-backed stable coins maintain a reserve of a fiat currency (or currencies) such as the US dollar. Those backed by another cryptocurrency, derived from the fact that reserve cryptocurrencies can also be prone to high volatility, are over-collateralized, meaning that the value of the cryptocurrency held in reserves exceeds the value of the issued stable coins.

Algorithmic Stablecoins may or may not have reserve assets. Their main distinction is the strategy of keeping the value of the coin stable by controlling its supply through an algorithm, essentially a computer program that executes a predetermined formula.

There are various stable coins but with different peculiar characteristics, one of which is the profit value granted that makes them more attractive. Which one do you have? Let me know.

Excellent early morning, today is a day of insomnia ♥️.