In the world of cryptocurrencies, prices swing up and down like a rollercoaster. But there’s one type of coin that’s built to stay steady — stablecoins.
A stablecoin is a cryptocurrency designed to keep its value stable, usually by being “pegged” to a traditional asset like the US dollar. Examples include $USDT (Tether), $USDC (USD Coin), and $BUSD (Binance USD).
Why Do Stablecoins Matter?
Safe Harbor: Traders use them to protect profits when the market gets volatile.
Fast Transfers: They allow quick, cheap cross-border payments without traditional bank delays.
DeFi Power: They’re widely used in decentralized finance for lending, staking, and earning interest.
Risks to Watch Out For
Not all stablecoins are backed or managed equally. Algorithmic stablecoins (like TerraUSD in the past) can fail if their peg breaks. Even fiat-backed ones depend on the issuer’s reserves and transparency.
In short: Stablecoins are the calm center in crypto’s storm — but even calm waters need to be checked for depth.
