What are stablecoins?

What is a stablecoin and how does it work?

Stablecoins are a type of cryptocurrency whose value is tied to another asset class to keep a stable, steady value. The most popular kind of stablecoins are fiat-backed stablecoins, which are tied to currencies such as the U.S. dollar.

https://www.coindesk.com/learn/what-is-a-stablecoin/#:~:text=Stablecoins%20are%20a%20type%20of,such%20as%20the%20U.S.%20dollar.

Ex of stablecoins

What's the point of a stablecoin?

Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference. Stablecoins are more useful than more-volatile cryptocurrencies as a medium of exchange. Stablecoins may be pegged to a currency like the U.S. dollar or to the price of a commodity such as gold.

https://www.investopedia.com/terms/s/stablecoin.asp#:~:text=Stablecoins%20are%20cryptocurrencies%20that%20attempt,a%20commodity%20such%20as%20gold.

which one is a stablecoin?

• 0%btc
• 0%tether
• 0%eth
• 0%xrp