How Stablecoins Work: A Comprehensive Guide to Stability in Crypto
How Stablecoins Work: A Comprehensive Guide to Stability in Crypto Stablecoins are cryptocurrencies designed to maintain a consistent value, typically pegged to fiat currencies like the US dollar, commodities, or other assets, by using mechanisms such as reserves, collateral, or algorithms.[1][4] Unlike volatile cryptocurrencies like Bitcoin, they provide price stability for trading, payments, and DeFi applications while leveraging blockchain’s speed and transparency.[3][6] This detailed guide explores the inner workings of stablecoins, their types, mechanisms, real-world examples, risks, and regulatory landscape. Whether you’re a crypto newbie or seasoned trader, understanding stablecoins is key to navigating the digital asset world. ...