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Explainer

Stablecoins explained: the calm corner of crypto

Most cryptocurrencies swing in price. Stablecoins are designed not to — each coin aims to stay worth about one US dollar.

Traders use them as a safe harbour: when you want to step out of a volatile position without cashing out to a bank, you move into a stablecoin like USDT or USDC.

They're also the base currency for most trading pairs, so understanding them makes the rest of an exchange much easier to navigate.

Stablecoins aren't risk-free — the quality of what backs them matters — but they're the calmest place to sit while you plan your next move.

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