Stablecoin

A token designed to hold a steady value, usually against a currency such as the US dollar.

In plain English

How stable it is depends on what backs it and whether holders can actually redeem. Stablecoins have lost their peg before; it is a risk, not a certainty.

Example

A dollar stablecoin trading at 0.97 has partly lost its peg.

Crypto Trading

See also

We count page views to see which lessons help. No ads, no profiling, no data sold. You can say no and nothing here stops working. Privacy policy