What is a “stablecoin” and why doesn’t its price change? (1 Viewer)

[uptrendfinancialsignal]

I was checking stablecoins yesterday and I expected the price to move small, but it just stayed on one spot. That one even confuse me more than a normal crypto. How can something just stay fixed like that? I read that they back it with real money, but in this kind world everything is fluctuating, how stable is the stablecoin really?

 

[Nomad]

Stable coins are pegged with fiat money, mostly USD, therefore, they have a fixed value. They might change based on how the fiat currency is moving in the market. Stable coins are created by creating fiat, gold or other crypto assets as reserve currency.

 

[Maya]

A stablecoin is a type of cryptocurrency designed to stay close to a fixed value, usually tied to the US dollar. I’m not really into it, but the main idea is to keep prices steady instead of fluctuating like other cryptocurrencies.