What is a Stablecoin? A stablecoin is a type of cryptocurrency pegged to a stable asset, such as the US dollar or gold. They are designed to reduce the volatility associated with traditional cryptocurrencies, making them more suitable for everyday transactions. Examples of stablecoins include Tether, USD Coin, and DAI.

Stablecoins have become essential for mainstream acceptance of cryptocurrencies, providing a more stable store of value for users. Their pegged value makes them ideal for everyday transactions and brings a level of stability to the market.