All the cryptocurrency coins and tokens have one common problem — volatility. The point is that you may buy something with your long-held Bitcoins, but the very next day the price rises. You end up with a massive loss. If you are, on the other hand, a merchant who is selling goods and services for the cryptocurrency, you will have a 50/50 chance of profit. So, as you can see, the process of accepting crypto and buying goods for it may sometimes be seen as not such a great idea.
To eliminate the issue of volatility, stable coins were invented. In this article ChangeNOW, a leading non-custodial cryptocurrency exchange is going to break down the basics of stable cryptocurrencies and outline some main types of it.
Let’s start with the very basic things.
Stable cryptocurrencies are the types of digital coins pegged to the real world assets — gold, oil, fiat or something else valuable. This connection makes the cryptocurrency price stable. Stable coins are quite important for the cryptocurrency space, as they open up the crypto purchase possibility without the usual market volatility. There are three main types of stable coins present on the market. To read more about them, visit ChangeNOW’s blog and read the full version of this article.