Understanding Stablecoins: What Are They?

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Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, usually a fiat currency like the US dollar or commodities like gold. This stability makes them an attractive option for transactions, savings, and hedging against the volatility of traditional cryptocurrencies. They combine the instant processing and security of cryptocurrencies with the stable valuations of fiat currencies. For a more comprehensive look at how stablecoins work and their uses, this article might be quite helpful: https://paybis.com/blog/glossary/what-is-a-stablecoin/ It provides a detailed explanation of the mechanics and advantages of stablecoins.