#WYSTStablecoin

A stablecoin is a digital asset that remains stable in value against a pegged external traditional asset class. Stablecoin reduces price volatility by backing its value against a conventional asset. The backing asset could be a combination of currencies, a single fiat currency, or other valuable assets.Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference. Stablecoins are more useful than volatile cryptocurrencies as a medium of exchange. Stablecoins may be pegged to a currency like the U.S. dollar or the price of a commodity such as gold.Broadly speaking, there are two main types of stablecoins: Collateralized stablecoins, backed by real world assets and crypto. Algorithmic stablecoins, managed by algorithms and smart contracts.