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Stablecoins

We will provide an easy-to-understand explanation of stablecoins, a type of cryptocurrency, including their mechanism, types, advantages and disadvantages.

Stablecoins are cryptocurrencies whose value is pegged to fiat currencies such as the dollar or assets such as gold in order to reduce price fluctuations. Unlike cryptocurrencies such as Bitcoin, whose prices fluctuate greatly, stablecoins are suitable for everyday transactions and storing value. There are various types of stablecoins, including fiat-backed, crypto-asset-backed, and algorithmic.