#Stablecoins
For beginners in crypto trading, you are certainly asking this question:
What is a stablecoin?
Stablecoins: Functioning and Applications
Stablecoins, while part of cryptocurrency, aim to provide value stability relative to fiat currencies. Their use is increasing, with transaction volumes reaching 5.6 billion US dollars in 2024, representing more than two-thirds of cryptocurrency transactions.
They are distinguished from other cryptocurrencies by their low volatility, being designed to maintain a 1:1 parity with assets. Types of stablecoins include those backed by fiat currencies, commodities, cryptocurrencies, and algorithmic structures.
Price stability depends on user confidence, market liquidity, and redemption mechanisms. Companies use stablecoins for cross-border payments, value preservation, and to compensate remote workers. Stripe Payments facilitates the integration of stablecoin payments for businesses globally.
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