Stablecoin

What Is a Stablecoin?
Stablecoins are cryptocurrencies the value of which is pegged, or tied, to that of another currency, commodity or financial instrument. Stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies including Bitcoin (BTC), which has made such investments less suitable for wide use in transactionsTABLE OF CONTENTS
CRYPTOCURRENCY ALTCOINS
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Stablecoin
By ADAM HAYES Updated May 11, 2022
Reviewed by JULIUS MANSA
Fact checked by SKYLAR CLARINE
NEWS ALERT May 11, 2022, 11:02 a.m. ET: The algorithmic stablecoin Terra lost its 1-to-1 peg to the U.S. dollar, trading for as little as $0.31 early Wednesday. 1

What Is a Stablecoin?
Stablecoins are cryptocurrencies the value of which is pegged, or tied, to that of another currency, commodity or financial instrument. Stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies including Bitcoin (BTC), which has made such investments less suitable for wide use in transactions.