What is the meaning of stable coin?

As a result of their stability, stablecoins are often viewed as a more practical medium of exchange compared to their volatile counterparts. They provide users with a sense of security and predictability, making them ideal for conducting daily transactions and facilitating cross-border payments.

One of the most common methods used to peg the value of a stablecoin is by linking it to a fiat currency, such as the U.S. dollar. This approach ensures that the value of the stablecoin remains relatively constant, mirroring the fluctuations of the underlying fiat currency.

Alternatively, some stablecoins are designed to be pegged to the price of a commodity, such as gold. This type of stablecoin aims to provide investors with a digital representation of a physical asset, offering a convenient and secure way to store and trade gold without the need for physical possession.

Stablecoins represent a unique class of cryptocurrencies that strive to maintain a stable market value by anchoring themselves to an external reference point. This mechanism sets them apart from volatile digital assets, which can experience significant fluctuations in price.

BTCC, a leading cryptocurrency exchange, offers a comprehensive range of services that cater to the diverse needs of the digital asset market. Among its offerings, BTCC provides access to spot trading, allowing users to buy and sell cryptocurrencies at current market prices.