What are the advantages and disadvantages of stablecoins? | Headlines | News | CoinMarketCap
05/31/2024 21:22
Stablecoins are cryptocurrencies that try to maintain a stable value relative to a specific asset. Typically, this asset is a country's currency, …
The Block Crypto News12 minutes ago
Published on May 31, 2024 14:10 GMT+00:00edited on May 31, 2024 14:14 GMT+00:00
Stablecoins are cryptocurrencies that try to maintain a stable value relative to a specific asset. Typically, this asset is a country's currency, also called "fiat" currency, such as the United States dollar.
Stablecoins have emerged as a popular alternative to traditional cryptocurrencies due to their price stability. However, like any financial instrument, they come with additional risks that investors should understand.
Advantages of stablecoins
Stablecoins bridge the gap between the inherent volatility of digital currencies and the stability of traditional fiat currencies. Their primary function is to offer a more predictable and less volatile digital asset by "pegging" their value to a stable reference point.
They are attractive among those seeking to …