Stablecoin: A stablecoin is a digital currency that mirrors the value of another asset (e.g., gold or fiat currencies). In principle, this can be any asset. However, stablecoins typically represent assets with low volatility. Most mirror fiat currencies like the Euro or US Dollar. This makes them relatively stable in value compared to other cryptocurrencies.

Due to this stability, stablecoins are particularly suitable for trading cryptocurrencies, such as Bitcoin. The advantage: Trading with stablecoins is significantly simpler on cryptocurrency exchanges.

Investors who want to buy or sell cryptocurrencies do not have to process this through their fiat bank account. This usually saves time and fees.

A stablecoin acts as a link between the crypto sector and the traditional market. By being tied to 'stable' values, it facilitates the trading and storage of crypto assets. Among the most well-known stablecoins is USDT by Tether. USDT is pegged to the value of the US Dollar.