Stablecoins are a type of cryptocurrency whose value is pegged to a stable asset, most often a fiat currency like the US dollar, or to gold. They are created to minimize the price volatility inherent in other cryptocurrencies.
Types of stablecoins: there are fiat-backed (backed by fiat currencies), crypto-backed (backed by other cryptocurrencies), and algorithmic.
Market role: used by traders to preserve profits, for quick transfers, and as a means of exchange on decentralized platforms.
