Beginners Guide to Stablecoins
Stablecoins have grown rapidly in the last 18 months, with a market cap of more than $100 billion. This guide will teach you what stablecoins are, how they work, and what role they play in the cryptocurrency ecosystem. You will also find a list of stablecoins that are popular among cryptocurrency users. What are stablecoins? Stablecoins, as the name implies, are cryptocurrencies having a fixed price. Stablecoins are current forms of cryptocurrencies in which the coin's value is linked to relatively steady external assets, such as the US dollar or gold. They can even be linked to a "basket" of secure valuables. Stablecoins are gaining popularity due to their combination of a backed-up reserve such as a fiat currency to achieve price stability. Types of Stablecoin Not all stablecoins are made equal. While most popular stablecoins are backed by US dollars stored in regulatory bank accounts, there are additional stablecoins with various stabilization procedures. Fiat-collat...