Stablecoins: they all look alike... but are very different.


A stablecoin = a crypto whose value remains stable.
But how is this stability guaranteed? It depends on the type.
Backed by Fiat (e.g., USDT, USDC)
Each token is backed by $1 in reserve.
The most used. The simplest to understand.
Backed by commodities (e.g., PAXG)
Guaranteed by gold, real estate, or diamonds.
Ideal for exposure to commodities via blockchain.
Backed by cryptos (e.g., DAI)
Guaranteed by other cryptocurrencies like ETH or BTC.
More decentralized but more complex to maintain.
Uncollateralized / Algorithmic (e.g., former LUNA/UST)
No physical reserve; stability is maintained by algorithms.
The riskiest. The collapse of Terra/Luna in 2022 proved it.
Not all stablecoins are equal.
Before using one, understand what guarantees its value.
$BNB
STABLE3.56%
PAXG0.2%
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