Detailed Explanation
Why It Matters:
Acts as "digital cash" on exchanges; reduces volatility risk when not trading, easy for fiat-like moves.
How It Works:
Backed by reserves or algorithms; used in trading pairs (e.g., BTC/USDT) instead of fiat directly.
Common Mistakes:
Assuming all stablecoins are equally safe (some have depegged); not diversifying (e.g., all in one like USDT).
FAQs
Why use instead of fiat? Faster transfers, 24/7 availability on exchanges.
Risk? Peg breaks possible (rare for major ones).
