Stablecoins: what are they and how do they work?
Stablecoins have gained a lot of popularity in recent years as they offer a stable price to their users, unlike cryptocurrencies such as Bitcoin or Ethereum, whose prices can be highly volatile. Stablecoins are digital tokens that are designed to maintain a stable value by being pegged to a stable asset such as a fiat currency or a commodity. In this article, we will explore what stablecoins are, how they work, and their benefits and limitations.
What are Stablecoins?
Stablecoins are digital tokens that aim to maintain a stable price by being backed by a stable asset such as a fiat currency, a commodity, or even another cryptocurrency. They offer users a reliable and stable way to store and transfer value without being affected by the volatility of traditional cryptocurrencies.
Stable...