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What are crypto dollars or stablecoins in USD

Some stable cryptocurrencies are equivalent to 1 USD and allow for quick and easy transactions in dollars. USDT, USDC, DAI

There are thousands of cryptocurrencies. Each large network or project in the ecosystem has its own token. And those cryptocurrencies and tokens all have different prices. However, there are very important cases of cryptos designed to always be worth 1 USD: these are dollarized stablecoins, also called crypto dollars. And all the major ones in the ecosystem are available for trading on Ripio: USD Tether, USD Coin, Dai

What is a crypto dollar

Stablecoins are a variety of tokens whose price is linked to that of another asset. Some do this with gold, for instance, and therefore their price changes. In that sense, the “stable” aspect is the relationship with the asset: 1 token of PAX Gold, for example, will always be worth 1 ounce of gold, even though that ounce of gold changes its dollar value frequently.

But there are other cryptos that peg their parity to the US dollar, such as USD Tether (USDT), USD Coin (USDC), Dai (DAI), or Binance USD (BUSD), which ensure that one unit of theirs is worth and will always be worth 1 dollar. This makes them very important tools for trading, saving, buying crypto, trading predictably, or exploring blockchain developments.

What are crypto dollars used for

For general users, they allow for easy saving in dollars, the ability to make money transfers with a predictable conversion, and having a reference in traditional currency for the costs of navigating web3 or using dapps, for example.

For traders, they are a fundamental instrument as a pivot for transactions.

For holders, they are a safeguard tool during extended bear markets, and an instrument for programmed buying (for example, through DCA).