A crypto asset designed to hold the value of a dollar
A stablecoin is designed to hold the same value as another asset, usually the US dollar. Most are issued against reserves held by the issuer, and they are used as a place to park value between trades in more volatile assets. Whether the peg actually holds depends on what backs it and on the issuer's credit. Some have failed to hold their value in the past.
One coin is designed to equal 1 US dollar, and in practice it trades between 0.99 and 1.01 dollars.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.