STABLECOINS

What Does STABLECOINS Mean in a Text?

Trading in Crypto

TikTok is rammed with get-rich-quick schemes based on the cryptocurrency market. However, despite all the innovation and potential for long-term growth with cryptocurrency, the market remains highly volatile. Yes, this offers the potential for high returns quickly, but it also means lightning-fast losses are also a possibility. If you're planning to trade, get familiar with the cryptocurrency terms, do your own research, and know the risks. Here is the term you're looking for:

STABLECOINS are cryptocurrencies with their value pegged to an external reference.

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STABLECOINS are cryptocurrencies that are designed to be less volatile than those such as Bitcoin. The value of a STABLECOIN may be pegged to a fiat currency, such as the US dollar, or to the price of a commodity, such as gold. There are also algorithmic stablecoins, the value of which is based on an algorithm which can issue more coins when its price increases and buy them off the market when the price decreases. US dollar USD backed stablecoins include Tether (USDT), USD Coin (USDC) and TrueUSD (TUSD).

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When I write STABLECOINS, I mean this:

"Cryptocurrencies with Value Pegged to an External Reference"

Summary of Key Points

"Cryptocurrencies with Value Pegged to an External Reference" is, by far, the most common meaning for STABLECOINS when it is used in a text. (Bear in mind that it could have another meaning if used in a different context.)