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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**.