NEWBIES 🔴 - What are Stable Coins and what are they for?

Stablecoins are a type of cryptocurrency that is designed to have a stable value, unlike other cryptocurrencies such as Bitcoin, whose value can go up and down a lot.

They are used to make fast, reliable and stable transactions.

How do they maintain their value?

1. Backed by money or assets:

• Some stablecoins are backed by real money, such as dollars or assets such as oil, or others. Just as the United States used to back money with the Gold they had, now cryptocurrencies are backed by dollars or the price of oil.

There are different types of Stable Coins and each one has different backings for its stability. The most used and common one you will hear is USDT, which stands for (UNITED STATES DOLLAR PER THETER). THETER is a type of technology based on security blocks (BLOCKCHAIN), this is the most used for its security and speed, which is why it has great acceptance in the market, although its commission per transaction is quite large and you will lose some money per transaction, so analyze if it is your best option.

There are more options with fewer commissions but they are usually not available on all crypto exchange platforms or not many sell them and it will be difficult to exchange them.

- Remember that:

These support each crypto currency with each real dollar that circulates at the same time, which is why they will be used to make safe and fast transactions, since their volatility depends on the dollar, which is why it is rare for its value to change drastically.

Also, make sure that when you start investing in any exchange (place where you exchange or buy crypto) you have these stable coins in your portfolio since it is important that you become familiar with the term and what commissions, advantages or disadvantages each Stable Coin has since you will use it in most cases to exchange your crypto for real money.

$USDC $WLD $USDT