Stablecoin

A stablecoin is a cryptocurrency designed to maintain a consistent value, usually by being backed by a real-world asset like US dollars or gold. Unlike Bitcoin or Ethereum, which fluctuate wildly, stablecoins aim to stay steady—typically worth $1 or €1. You'll encounter them on crypto exchanges and trading platforms, where they serve as a bridge between traditional money and the crypto world. They matter because they reduce the risk of sudden price swings when you're moving money in and out of crypto investments. For example, an investor might convert their holdings into USDC (a stablecoin) to lock in value during market volatility, then use it to buy other cryptocurrencies when prices look attractive.