📌 What are stablecoins? And why are they considered the backbone of the crypto market?
In the volatile world of digital currencies, there is a special type of currency called stablecoins, designed to maintain a stable value against a traditional currency like the US dollar or the euro.
But what are these currencies? And why have they become essential in any digital investment portfolio? Let's get to know them briefly 👇
✅ What are stablecoins?
Stablecoins are digital currencies typically pegged to the dollar (1 coin = 1 dollar), aiming to reduce market volatility.
Some of the most famous include:
USDT (Tether)
USDC (USD Coin)
BUSD (Binance USD)
🎯 Why do we use them?
🔒 To protect profits: When the value of currencies rises, they can be converted into a stablecoin to lock in gains.
🔁 For easy trading: They are used as a medium to quickly buy and sell other currencies.
🌍 For international transfers: They provide a fast and low-cost option for transferring money.
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⚠️ Are they 100% safe?
Although they are stable, some currencies like UST (which collapsed) have shown that verifying the backing of the currency is important.
It is preferable to use stablecoins backed by real assets and certified by trusted financial institutions.
Do you use stablecoins in your wallet? Share your thoughts in the comments 💬👇
