What is a stable coin?

[Ernestnari]

I'm curious to know what a stable coin is, as I know some coins such as USDT are termed stable coins,does that mean it's value does not change?

 

[Salt]

I would also like to know more about it and its name suggests that its better and less volatile than other cryptocurrencies

 

[Ernestnari]

I would also like to know more about it and its name suggests that its better and less volatile than other cryptocurrencies

My point is, if at all it's better than other coins but doesn't increase in value over time, then what's the need to invest in it?

 

[Salt]

My point is, if at all it's better than other coins but doesn't increase in value over time, then what's the need to invest in it?

LOL Good point but I guess its a way to invest our earnings in crypto and they are not as volatile as for example BTC or LTC

 

[Riberet19]

Stablecoins are cryptocurrencies that are linked to the value of the dollar thanks to the fact that they are usually backed 1-1 with respect to the dollar, whether for each cryptocurrency of this type it is backed by a real dollar, or other assets such as commercial paper etc.

 

[Salt]

Stablecoins are cryptocurrencies that are linked to the value of the dollar thanks to the fact that they are usually backed 1-1 with respect to the dollar, whether for each cryptocurrency of this type it is backed by a real dollar, or other assets such as commercial paper etc.

Since they are stablecoins do you think its wise to invest in these? Do they have a volatile nature because if no then its not profitable to invest in these

 

[Riberet19]

Since they are stablecoins do you think its wise to invest in these? Do they have a volatile nature because if no then its not profitable to invest in these

They are not volatiles, they are related to the dollar and follow that price, that is, they remain 1-1 with the dollar, they are good to buy and sell cryptocurrencies quickly, that is, to exchange them for the value of the dollar, imagine that bitcoin now rises to 70k, and you want to sell, so you change it quickly for USDT and these USDT after you change them for dollars, It can be a way to use them.

 

[Salt]

They are not volatiles, they are related to the dollar and follow that price, that is, they remain 1-1 with the dollar, they are good to buy and sell cryptocurrencies quickly, that is, to exchange them for the value of the dollar, imagine that bitcoin now rises to 70k, and you want to sell, so you change it quickly for USDT and these USDT after you change them for dollars, It can be a way to use them.

But does not that mean that we cannot expect to make profits if we invest in Stable coins

 

[Riberet19]

But does not that mean that we cannot expect to make profits if we invest in Stable coins

well, its name indicates, it remains stable and pegged to the dollar value, it is simply a good option as I said to quickly sell your tokens or store money in stablecoin to take advantage of points to buy in certain cryptos, it is not an investment from my point of view since its price does not vary.

 

[Nomad]

Technically speaking, stable coins are created by creating reserve funds with gold or fiat currency. That's why the value is always fixed.

 

[Bisolami]

I'm curious to know what a stable coin is, as I know some coins such as USDT are termed stable coins,does that mean it's value does not change?

A stable coin is a coin that always has the same price and it is mostly fiat currencies