Cyptocurrencies are known for their volatility. This means that the prices of coins can rise and plummet abruptly, which makes it difficult for investors to zero down on a particular coin. However, stablecoin solves this issue.
Stablecoins are digital currencies that are usually backed by assets such as fiat currency, other cryptocurrencies or gold. The stable assets make these coins less susceptible to fluctuations and keep their prices stable. Certain stablecoins also use a computer algorithm to keep their value comparatively stable.