🤓 Stablecoins and types: an easy and brief lesson

📌 These are digital assets built with cryptography (or another type of cryptocurrency, if you prefer), designed to maintain a fixed price. Kind of. They peg their prices to other assets, considered more stables. It’s very usual, for example, to find stablecoins backed by USD with a 1:1 ratio. So, their price is around $1 per token.

👉 However, not every stablecoin type works in the same way, and definitely not all of them are backed by USD. The underlying asset used to minimize the natural volatility in stablecoins can be another fiat currency, a commodity, different cryptocurrencies, or the code itself.

💡 Let’s check more about this in our blog!
https://blog.alfa.cash/2020/12/06/stablecoins-and-types-an-easy-and-brief-lesson/