What is a Stable Coin?

Lesson 4


Stablecoins act as a bridge between cryptocurrencies and fiat currencies, as the price of stablecoins is linked to reserve values ​​such as the US dollar or gold. This reduces volatility compared to Bitcoin, for example, and results in digital money that is better suited for many things, from daily trading transactions to transfers between exchanges. This coupling of the stability of traditional assets with the flexibility of digital assets has proven extremely popular. Billions of dollars have already flowed into stable coins like USD Coin (USDC). They are now one of the most popular ways to store and trade assets in the crypto ecosystem.