What are Stablecoins? — A Detailed Guide

What Are Stablecoins?

How Do Stablecoins Work?

Stablecoin Risks

Limitations

How To Buy Stablecoins?

Takeaways

  • Stablecoin is essentially an attempt to create a cryptocurrency that is stable.
  • The value of a stablecoin is the same as the value of the actual asset or fiat currency that it pegs itself to.
  • Fiat currency, crypto-backed, and algorithmic functions usually serve as backers of stablecoins.
  • Stablecoins have their limitations, depending on the currency they are pegged to.
  • You can purchase stablecoins on various exchanges.
  • Most exchanges support such coins. Some of them are Gate.io, Binance, and Coinbase.

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