Stablecoin

Unlike other cryptocurrencies, Stablecoins are meant to provide financial stability in the face of price fluctuations in the volatile cryptocurrency market. There are different kinds of stablecoins, such as FIAT-pegged stablecoins (e.g. pegged to the U.S. dollar or the euro), commodity-backed stablecoins (e.g. gold), crypto-backed stablecoins and stablecoins which rely on an algorithmic mechanism to keep them pegged.

For instance, a dollar-pegged Stablecoin is redeemable 1:1 against the U.S. dollar. Prominent examples of dollar-pegged Stablecoins are Tether (USDT), USD Coin (USDC) or Binance USD (BUSD).

See also: Altcoin Trader, Binance, Binance USD (BUSD).