🧮🏦Stablecoins seek stability against crypto volatility by anchoring their value to assets like the dollar, euro, or even gold.
They are divided into four types based on their mechanism:
• Fiat-backed: Stable and popular, but with doubts about transparency.
• Crypto-collateralized: Decentralized, although exposed to volatility.
• Algorithmic: Automated and innovative, but vulnerable to collapses.
• Hybrid: Mix various methods to maintain parity. #Stablecoins #BinanceSquare #Binance #BinanceSquareTalks #USDT $USDT $USDC $USD1