What is the difference between a stablecoin and a cryptocurrency?

Gold or real estate are examples of hard assets. As collateral for stablecoins, gold is most commonly used; however, many stablecoins use a diversified combination of precious metals. Crypto-backed stablecoins, on the other hand, paint a very different picture than those pegged to crypto assets.

How many stablecoins are there?

Currently, the stablecoin ecosystem contains almost 200 stablecoins, making it difficult to compile a comprehensive list. On the other hand, the notable stablecoins listed here can provide valuable insights into the characteristics found in the majority of stablecoins. Stablecoins have the best aspect evident in their name, i.e., stability.

What is a US dollar-based stablecoin?

In theory, a U.S. dollar-based stablecoin is a token that will reside on a blockchain and always trade for one dollar. Stablecoins are typically pegged to a currency or a commodity like gold, and they use different mechanisms to maintain their price peg.

What are stablecoins & how do they work?

Stablecoins are a type of cryptocurrency that is designed to maintain a stable value, usually pegged to a fiat currency like the U.S. dollar. Unlike other cryptocurrencies, which can be highly volatile and subject to rapid price fluctuations, stablecoins are intended to provide a more stable and predictable value.