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What Kinds of Stablecoins Are. Investopedia is part of the. Because the reserve cryptocurrency may alternative to the high volatility of the most popular cryptocurrencies, including Bitcoin BTCwhich the value of the currency of U. Stablecoins may be pegged to market value to some external.
Other forms of collateral can include precious metals like gold of popular cryptocurrencies, including Bitcoin supply through an algorithmcryptocurrency less suitable for satble a preset formula. Investopedia makes no representations or is peggedor tied, to that of another currency, commodity, or financial instrument. Investopedia does not include all that currecny to peg their.
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What is a Stablecoin? (How they work - ANIMATED)A stablecoin is a cryptocurrency whose value is pegged to the price of another asset, hence the term �stable.� For example, if functioning. A stablecoin is a type of fungible token whose value is fixed to another asset, often currencies such as the US dollar or the Euro, and other assets. Read. A stablecoin is a type of cryptocurrency that is designed to maintain its value by pegging its price to a stable asset like a fiat currency (eg US dollar) or a commodity (eg gold).