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What are stable cryptocurrencies?

Stable cryptocurrencies (or stablecoins) are digital assets designed to maintain a stable value by being pegged to a reserve asset, such as the US dollar (USD), euro (EUR), or even commodities like gold.

Unlike traditional cryptocurrencies (such as Bitcoin or Ethereum), which can have high price volatility, stablecoins are created to minimize fluctuations and make everyday transactions more predictable.

They are commonly used for:

Sending and receiving money without worrying about sudden price changes.
Trading and storing value as a safer alternative to volatile cryptocurrencies.
Purchases and payments, since their value remains stable.

Some well-known examples of stablecoins include USDT (Tether), USDC (USD Coin), and DAI.

Updated on: 02/09/2025

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