Markets & Sentiment
Stablecoin explained
Stable coins – USDT, USDC
Quick definition: A stablecoin is a coin pegged to a stable asset, most commonly pegged 1:1 to the US dollar (USDT, USDC).
Stablecoins let traders "sit out" the market without withdrawing to a bank account, and they are the main unit of account on exchanges (BTC/USDT pairs...).
Stablecoins are backed by cash, bonds or other assets. The level of reserve transparency varies by issuer.
A growing stablecoin supply is often seen as new money waiting to enter the market.
You sell 0.1 BTC for 8,000 USDT to wait for a correction, and your holdings keep almost the same value in US dollars.
Related terms
Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.