A stablecoin is a cryptocurrency designed to maintain a stable value. It’s often pegged to a real-world asset such as the US dollar or a commodity like gold. The aim behind stablecoins is to provide the benefits of cryptocurrency (fast, borderless transactions) without the typical price volatility.
There are different types of stablecoins. Some, like USDT or USDC, are backed by reserves of fiat currency, whereas others use algorithms of other cryptocurrencies to maintain their stability. People often use stablecoins for lending, trading, and transferring money without having to worry about changing prices.
The cryptocurrency can be volatile, and stablecoins provide a sense of security and stability, making them a popular choice for casual users and seasoned crypto enthusiasts.
|
Cryptoassets are high-risk and may not be right for everyone. The value of your crypto can go up or down at any time and may even fall to zero. You should only invest if you fully understand the risks and if it suits your financial situation. Funds used for crypto transactions are not safeguarded and are not covered by the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service.
Read the full Risk Disclosure of Synterra Innovations Ltd. for more details. |