Stable... what?
Let me explain stablecoins in a simple way.
Have you heard of "USDT", "DAI" or "BUSD" and it sounded like Martian jargon?
Don't worry.
Here I explain what stablecoins are and why they are so popular 👇
What are stablecoins?
They are cryptocurrencies designed to have a stable price, usually pegged to the dollar (1 USDT = 1 dollar, for example).
Less volatility
Useful for protecting profits
Ideal for sending money quickly and without banks
Types of stablecoins you should know:
🔹 Centralized (backed by real money):
USDT (Tether)
USDC (USD Coin)
BUSD (Binance USD)
These are backed by reserves in banks.
Their stability depends on the company that issues them.
🔸 Decentralized (backed by crypto):
DAI (from MakerDAO) – uses ETH and other tokens as collateral.
FRAX – hybrid system with backing and algorithms.
Some like UST (Terra) collapsed, so not all "stable" ones are safe.
How to choose one?
✅ Check if it is audited.
✅ Research who issues it.
✅ Avoid putting everything in one.
✅ Use them as a tool, not as a permanent “savings account.”
Do you already use any stablecoin?
Which one is your favorite and why?
Save this post if you are starting in crypto or if you want to better understand your digital financial decisions.
I read you in the Comments 👇
