Stablecoins explained

Crypto designed to track a currency like the US dollar.

A stablecoin aims to keep a steady value, usually $1, so you can hold or move value without big price swings.

Types

• Fiat-backed: backed by reserves such as cash and short-term bonds.
• Crypto-backed: backed by other crypto, often over-collateralized.
• Algorithmic: rely on code and incentives; these have failed before.

Risks

A stablecoin can lose its peg, the issuer can have problems, or rules can change. "Stable" does not mean risk-free.

Educational content, not financial advice. Rules and products change, so verify with official sources.