JoymistaWhat Is a Stablecoin Like USDT or USDC?
A stablecoin is a crypto token built to keep its price steady near another asset, usually one US dollar, such as USDT and USDC.
Explained
Traders use stablecoins to move between coins without going back to a bank. Their stability depends on the reserves or mechanism behind them, and they can lose their dollar peg briefly or for good if trust breaks. When sending them, both sides must use the same network.
Example
Example with made-up numbersIf a stablecoin trades at 0.97 dollars instead of 1.00, it has lost 3% of its peg, and 10,000 units are worth 9,700 dollars at that moment.
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Open in JoymistaEducational content, not investment advice.