All About Stablecoins
Stablecoins are a class of cryptocurrencies whose value is pegged to traditional financial assets such as USD, EUR, or precious metals.
The main advantage of stablecoins is their stable and predictable value, making them widely used in digital transactions worldwide. Another key benefit is protection from volatility—investors can avoid sharp market fluctuations by holding funds in stablecoins.
Why Traders Use Stablecoins:
- Hedging risks during market instability;
- Quick access to liquidity , allowing traders to react promptly to market changes. Most exchanges support stablecoins, making it easy to enter and exit positions;
- Margin trading — stablecoins can be used as collateral for loans and credit;
- A convenient bridge asset — stablecoins serve as a link between cryptocurrencies and fiat money without requiring a bank withdrawal;
- Passive income opportunities — traders can earn through staking, lending, and DeFi protocols.
Types of Stablecoins:
-
Fiat-backed stablecoins
, which are backed by reserves held in banks or specialized funds.
- USDT (Tether)—the most widely used stablecoin with broad exchange support.
- USDC (USD Coin)—considered reliable due to its transparency and regulatory compliance.
- BUSD—a Binance-backed stablecoin with high liquidity.
- Crypto-backed stablecoins (DAI) use other cryptocurrencies as reserves, maintaining stability through over-collateralization mechanisms.
- Algorithmic stablecoins (UST, FRAX) have no direct reserves; their value is maintained through algorithmic mechanisms.
On our BLOCKORIA platform, we publish not only stablecoin-related news but also in-depth analysis on the future of this cryptocurrency class.
Experts predict that more major companies will adopt stablecoins, boosting investor confidence and expanding their impact on the global economy. Additionally, advancements in blockchain infrastructure (Ethereum 2.0, Layer 2 solutions) will further improve transaction efficiency.
We also run a Youtube channel
, where we not only explain what stablecoins are but also provide valuable insights for traders.