A stablecoin is a type of cryptocurrency tied to the value of another asset, such as fiat currency (USD, EUR), precious metals (gold) or commodities (oil). Unlike other cryptocurrencies, which can be very volatile, stablecoins tend to have a stable price, which makes them more attractive.
What types of stablecoins are on the market?
1. Fiat: These stablecoins are backed by fiat currency reserves held by the issuing company. For example, one USD Coin (USDC) is backed by one US dollar.
2. Cryptocurrency: These stablecoins are backed by reserves of other cryptocurrencies. For example, one Dai is backed by a certain amount of Ethereum.
3. Algorithmic: These stablecoins use algorithms and smart contracts to regulate the supply of coins and maintain a stable price. For example, TerraUSD (UST) uses an algorithm that automatically burns or releases UST coins to maintain a peg to the US dollar.
What are the advantages of stablecoins?
– Price stability: Stablecoins are less volatile than other cryptocurrencies, making them more attractive to investors looking for a safe asset to store funds.
– Fast and cheap transactions: Thanks to blockchain technology, stablecoin transactions are generally faster and cheaper than fiat currencies.
– Access to decentralized finance (DeFi): Stablecoins can be used in various DeFi applications, such as loans and deposits.
Examples of popular stablecoins:
• Tether (USDT) is the most popular stablecoin backed by fiat currency (the dollar).
• USD Coin (USDC) is another popular stablecoin backed by fiat currency.
• Dai (DAI) is an algorithmic stablecoin backed by a basket of cryptocurrencies.
Stablecoins are available for exchange on our platform. Using the website’s homepage menu, you can familiarize yourself with the coins you can sell or buy with Crypcie. If you have any questions about the exchange of stablecoins – contact our exchanger support team (via chat on the site or Telegram). We are always happy to help!
