Understanding Stablecoins
A stablecoin is a type of cryptocurrency designed to maintain a stable value, usually pegged 1:1 to a fiat currency like the US Dollar. Unlike Bitcoin or Ethereum, stablecoins don't experience wild price swings, making them ideal for trading, payments, and storing value.
Think of it this way: If Bitcoin is like gold (volatile but valuable), stablecoins are like digital dollars — stable, predictable, and easy to use for everyday transactions.
Types of Stablecoins
Fiat-Backed
Backed 1:1 by real-world currency held in reserves
Pros
- Most stable
- Easy to understand
- High liquidity
Cons
- Centralized
- Trust in issuer required
- Regulatory risk
Top Stablecoins by Market Cap
| Coin | Type | Market Cap |
|---|---|---|
U USDT Tether | Fiat-backed | $120B |
U USDC USD Coin | Fiat-backed | $42B |
D DAI Dai | Crypto-backed | $5B |
F FDUSD First Digital USD | Fiat-backed | $2.5B |
T TUSD TrueUSD | Fiat-backed | $500M |
F FRAX Frax | Algorithmic | $650M |
Stablecoin Yield Calculator
Calculate potential earnings from lending or staking your stablecoins. APYs vary by platform and market conditions.
Yearly Earnings
$800
Total Earnings
$800
Final Amount
$10,800
Higher APYs usually mean higher risk. Always research the platform and understand the risks involved.
De-Peg Risk Simulator
See how a de-peg event affects your holdings. The 2022 UST collapse saw a 100% de-peg, wiping out billions.
Original Value
$10,000
After De-peg
$10,000
Loss
-$0
Stablecoin Use Cases
Trading
Safe haven during volatility
Payments
Fast, cheap global transfers
Savings
Earn yield on stable assets
DeFi
Collateral for loans & liquidity
Frequently Asked Questions
Start Using Stablecoins Today
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