What are stablecoins?
Stablecoins are a type of cryptocurrency designed to reduce price volatility by pegging their value to stable assets, such as fiat currencies or commodities. Unlike other cryptocurrencies that can fluctuate significantly over a short period, stablecoins aim to provide a more stable store of value.
Stable coin
Are you curious about stablecoins but find cryptocurrency concepts overwhelming? You're not alone. The world of digital currencies can be complex, especially for beginners. This comprehensive guide explains everything you need to know about stablecoins in clear and simple terms. From understanding what they are and how they work to learning about different types and how to use them safely, we are here to cover your needs. Whether you're looking to protect your assets from market volatility, send money internationally, or simply expand your knowledge of digital currencies, this guide will provide you with the essential information to navigate the world of stablecoins with confidence.
Key points
Stablecoins are cryptocurrencies designed to maintain price stability by pegging them to assets like the US dollar, providing the benefits of cryptocurrency without the volatility.
The stablecoin market has grown to $235 billion by 2025, with main types including fiat-backed coins (USDT, USDC), commodity-backed coins (PAXG), crypto-backed coins (DAI), and algorithmic stablecoins.
The best stablecoins include Tether (USDT), the US Dollar Coin (USDC), Binance USD (BUSD), DAI, PayPal USD (PYUSD), and RLUSD from Ripple, with an increasing popularity of Euro stablecoins in Europe.
Stablecoins offer benefits including price stability during market volatility, cross-border transactions at lower costs, financial inclusion, DeFi applications, and protection against inflation.
The main risks include regulatory uncertainty, reserve transparency issues, de-pegging events, and centralization concerns.
To use stablecoins on MEXC, create an account, choose the stablecoin and the correct network, create an address, and carefully verify network compatibility to avoid losing funds.
Regulatory frameworks are evolving globally, with the United States advancing bills such as the STABLE Act and the GENIUS Act, while the European Union has implemented MiCA regulations.
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