@tarantula3 6 February 2021 more from that month

What is stablecoin? In one line, a stablecoin is a cryptocurrency that provides **price stability**. Bitcoin or other cryptocurrencies suffer from **high volatility**. Which means, the price of a Bitcoin or other cryptocurrencies can rise or drop very quickly. This makes Bitcoin unsuitable for everyday usage and paying for day to day commodities. Bitcoin price increased by 35% from March 2020 to April 2020 only. Stablecoins on the other hand, **keeps the inflation rate to the minimum**. Most stablecoins keep the price equal to FIAT currencies. For example, **Tether (USDT)** and **USD Coin (USDC)** prices are always **equal to 1 USD**. They allow small inflation or deflation, but we are talking about **less than 1% difference in 24 hours.**

Stablecoin allows the **“best of both worlds”**.  Fast transaction speeds anywhere in the world and  Price stability.  This makes them great for **everyday use** and are **safe** when massive swings happens in the markets. Stablecoin can be pegged not only to FIAT currencies but also to other cryptocurrencies or exchange-traded commodities like gold, silver, etc. Where can I get a stablecoin? Stablecoins can be bought from various exchanges. I am not mention any names here but if you google you can find a lot. Most of the crypto wallets these days offer internal exchanges aswell. How do stablecoins work? Each stablecoin is backed by either a FIAT currency, cryptocurrency, or exchange-traded commodities like gold or silver. We will use USDT as an example. **Tether** is pegged to USD fiat currency. This means that the **USDT is** ba**cked by USD by a 1:1 ratio**. However it will be wrong to say that they always remain 1:1.