🔹 What is a Stablecoin?
A stablecoin is a type of cryptocurrency designed to maintain a stable value, usually pegged to a fiat currency like the US Dollar (USD). Unlike Bitcoin or Ethereum, stablecoins don’t have extreme price fluctuations.
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Popular Stablecoins:
1. USDT (Tether) – The most widely used stablecoin, backed by USD reserves.
2. USDC (USD Coin) – Regulated stablecoin, trusted for transparency.
3. BUSD (Binance USD) – A stablecoin issued by Binance and Paxos, pegged 1:1 with USD.
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Why are Stablecoins Important?
✅ Hedge against volatility
✅ Easy transfer of value
✅ Used for trading pairs in exchanges
✅ Essential for DeFi and staking
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Key Takeaway:
Stablecoins bridge the gap between traditional finance and crypto markets by offering the stability of fiat with the flexibility of blockchain.
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