What is a (Stable Coin) and what is its main difference from the most common cryptocurrencies such as Bitcoin or Ethereum?
A Stable Coin is a cryptocurrency designed to maintain a stable value, usually pegged to a fiat currency such as the US dollar or a reserve of assets. The main difference with other cryptocurrencies is its price stability, since it seeks to minimize the volatility associated with cryptos such as Bitcoin or Ethereum.
Stable Coin Cryptocurrency Example
Tether USDt (USDT)
USDC (USDC)
DAI (DAI)
TrueUSD (TUSD)
First Digital USD (FDUSD)
Pax Dollar (USDP)
Its value tends to vary very little between (1 USD) to (0.9997 a little more a little less but never very far from 1 USD)
Examples of cryptocurrencies with high volatility
Bitcoin (BTC)
Ethereum (ETH)
Binance Coin (BNB)
LiteCoin (LTC)
SOLANA (SUN)
Perpetual Protocol (PERP)
Its volatility varies greatly
A brief example with Bitcoin (BTC)
You have 1 Bitcoin valued at $43,555.09
In days or hours that value can increase enormously or decrease in value, for example, $43,555.09 becomes a Bitcoin coin worth $37,555.09.
or from $43,555.09 it costs enormously to $68,555.09 for one Bitcoin coin.
