Stablecoin

A stablecoin is a type of cryptocurrency designed to minimize the volatility typically associated with cryptocurrencies. It achieves price stability by being pegged to a stable asset, usually a fiat currency like the US dollar, or sometimes to commodities like gold. There are different mechanisms for maintaining this peg, including collateralization, algorithmic control, or a hybrid of both.
Stablecoins aim to provide the benefits of digital currencies, like fast transactions and blockchain security, while offering the price stability of traditional currencies. They are particularly useful for everyday transactions, trading, and as a hedge against the volatility of other cryptocurrencies.