What are stablecoins?

Stablecoins are a type of cryptocurrency designed to maintain a stable value, usually pegged to a specific asset or a basket of assets. Unlike many other cryptocurrencies like Bitcoin or Ethereum, which experience significant price volatility, stablecoins aim to provide stability and reduce the volatility associated with traditional cryptocurrencies.Stablecoins offer benefits such as fast transaction settlements, global accessibility, and reduced exposure to price volatility compared to traditional cryptocurrencies. They are often used for purposes such as remittances, trading on cryptocurrency exchanges, and as a store of value.

• Tether (USDT): Tether is one of the most widely used stablecoins and is pegged to the US dollar.

• USD Coin (USDC): USD Coin is a stablecoin issued by Coinbase and Circle, and it is also backed by the US dollar.

• Binance USD (BUSD): Binance USD is a stablecoin issued by Binance and is backed by US dollars.

• Dai (DAI): Dai is a decentralized stablecoin built on the Ethereum blockchain. It maintains its stability through a system of smart contracts and collateralization with other cryptocurrencies.

• TrueUSD (TUSD): TrueUSD is a stablecoin that aims to provide transparency and is backed by US dollars held in escrow accounts.

( Informations are based on various researches)#StableCoin #BUSD #Binance #Eshajee