Stablecoins Explained: A Comprehensive Beginner’s Guide to How They Work, How to Choose the Right One, and How to Get Started

What Are Stablecoins?

Stablecoins are a class of crypto assets engineered to minimize price volatility by pegging their value to fiat currencies like the US dollar or to tangible assets such as gold.

Unlike mainstream cryptocurrencies—like Bitcoin and Ethereum—that experience sharp price swings, stablecoins are structured to maintain a steady value, often targeting a fixed rate such as “1 coin = 1 USD.” This design allows them to offer the speed, 24/7 availability, and robust blockchain security of crypto assets, while also providing price stability.

Stablecoins have rapidly gained traction worldwide, serving as both a store of value in the crypto market and a tool for enhancing the efficiency of international payments and settlements.

Rapid Market Expansion

The stablecoin sector has recorded extraordinary growth in recent years.

Recent figures indicate the total stablecoin market capitalization is around $300 billion, up significantly from the $200 billion range just a few years ago. This surge reflects not only the broader crypto market’s expansion but also a growing recognition of stablecoins as mainstream payment instruments and value stores.

That said, recent reports show the market has experienced a modest monthly contraction—the first in about two years—signaling a transition from “uninterrupted growth” to a phase of maturation marked by cycles of expansion and adjustment. This shift is likely driven by evolving regulatory frameworks and a more diverse base of market participants.

Types of Stablecoins

Stablecoins can be classified by the mechanisms they use to maintain price stability. Each model has distinct features, advantages, and drawbacks.

Fiat-Collateralized Stablecoins

This is the most prevalent type, fully backed on a 1:1 basis by fiat currencies like the US dollar. The issuer holds reserves equal to the total stablecoins in circulation, with independent custodians safeguarding these funds. To enhance transparency, most issuers submit to regular third-party audits and publicly disclose the results.

The chief advantage of this approach is a simple structure and relatively high price stability. Users can redeem stablecoins for fiat currency at any time, which encourages confidence and broader adoption.

Notable Examples:

• Tether (USDT): The world’s most widely circulated stablecoin
• USD Coin (USDC): Emphasizes transparency and regulatory compliance
• Exchange-Issued Stablecoins (BUSD): Launched in partnership with major exchanges
• PayPal USD (PYUSD): An initiative by the payments giant
• Pax Dollar (USDP): Designed with regulatory compliance as a priority

Commodity-Collateralized Stablecoins

This model pegs value to physical assets (commodities) such as gold or silver. The corresponding quantity of precious metals is securely stored in professional vaults.

Notable Examples:

• Pax Gold (PAXG): Pegged to one troy ounce of gold
• Tether Gold (XAUt): A gold-backed digital asset

This approach lets users invest in precious metals easily and digitally, often with small amounts, compared to the hurdles of direct physical ownership and storage. Precious metals like gold are prized as long-term value stores and are popular as inflation hedges.

Crypto-Collateralized Stablecoins

This type is issued by locking up other crypto assets, such as Bitcoin or Ethereum, as collateral.

Due to the volatility of crypto assets, these stablecoins typically use overcollateralization—for example, requiring more than $2 in crypto collateral to mint $1 in stablecoins—to help protect against price declines. This structure helps maintain the stablecoin’s value even if collateral prices fall.

Notable Example:

• DAI: Managed by the decentralized autonomous organization MakerDAO, DAI is issued when users deposit assets like Ethereum into smart contracts.

This model’s hallmark is the absence of centralized management; everything runs automatically on-chain via smart contracts. It most closely embodies the vision of decentralized finance (DeFi).

Algorithmic Stablecoins

This category relies primarily on algorithms (programs) that automatically expand or contract supply in response to price movements, usually with minimal or no collateralization, to maintain a $1 price target.

If the price rises above $1, supply is increased to push it down; if the price dips below $1, supply is reduced to drive it up—an approach rooted in economic theory.

Notable Example:

• Frax (FRAX): A hybrid stablecoin combining partial collateralization with algorithmic supply management

While this model is efficient in theory, past events show it can be vulnerable to rapid market swings or loss of confidence. Consequently, partially collateralized hybrids are becoming more popular than pure algorithmic designs.

Leading Stablecoins

Many stablecoins exist, but a handful play especially critical roles in the market. Here’s a closer look at the most significant ones.

Tether (USDT)

Tether (USDT) boasts the largest circulation and market capitalization among stablecoins.

Recent data puts USDT’s market cap above $180 billion, far outpacing its peers and highlighting its dominance in the sector.

• Launched: 2014 (a pioneer in the space)
• Peg: US Dollar (1 USDT ≈ $1)
• Supported Blockchains: Available on Ethereum, Tron, Solana, and others—supports cross-chain transactions

USDT has long been widely used, but questions about transparency persist. In the past, Tether was criticized for “opaque reserve structures,” and in 2021, it was fined by the US Commodity Futures Trading Commission (CFTC).

Nevertheless, USDT remains the primary trading currency in crypto markets, especially across Asia and Europe, underscoring its continued prominence.

Recently, S&P Global downgraded the credit quality of Tether’s reserves to the lowest category (“weak”), citing a rising proportion of volatile assets like Bitcoin and corporate bonds.

While USDT’s price stays close to $1, concerns about the impact of its vast market size on the broader financial system have intensified, drawing more scrutiny from regulators and market participants.

USD Coin (USDC)

Issued by Circle, USDC is distinguished by transparency and a proactive approach to regulatory compliance.

• Launched: 2018 (originally a joint project between Circle and major exchanges)
• Reserves: Primarily consists of cash and short-term US Treasuries for maximum safety
• Audits: Regular third-party attestation ensures reserve transparency

USDC enjoys widespread use in North America and across various DeFi protocols and services. Its regulatory engagement has driven adoption among institutional investors and enterprises.

USDC’s market cap is currently around $75 billion, a robust increase since the beginning of the year—a testament to its perceived reliability and transparency.

With new US stablecoin regulations (like the GENIUS Act) under discussion, Circle supports a compliant framework and is further positioning USDC as essential payment infrastructure.

Other Noteworthy Stablecoins

In addition to USDT and USDC, several stablecoins are drawing attention:

• Exchange-Issued Stablecoins (BUSD): Issued by Paxos in partnership with a global exchange giant and optimized for use within exchange ecosystems.

• DAI: Unlike centralized stablecoins, DAI is a decentralized stablecoin created through the MakerDAO protocol. Users deposit excess collateral like Ethereum to mint DAI, which is pegged to the US dollar. Full decentralization is its defining trait.

• PayPal USD (PYUSD): Jointly launched by PayPal and Paxos, PYUSD marks the entry of traditional finance into the stablecoin market. Its adoption is set to benefit from PayPal’s massive user base.

• Ripple USD (RLUSD): Issued by Ripple, the company behind the XRP Ledger, RLUSD is designed primarily for streamlining international payments and institutional adoption, with a focus on collaboration with established financial institutions.

Each of these stablecoins targets distinct needs and use cases, contributing to the market’s diversity.

How Stablecoins Maintain Value

Stablecoins can sustain a value of “1 token ≈ $1” through a blend of carefully designed mechanisms. Here are the main pillars:

Reserve Asset Backing

Fiat-collateralized stablecoin issuers hold assets equivalent to the total amount issued, typically in bank accounts or government bonds.

This structure is similar to traditional bank deposits. When users redeem stablecoins, the issuer credits their bank account with the corresponding fiat amount. This guarantee of “always-on convertibility” underpins stablecoin value.

Reserve compositions vary but commonly include:

• Cash deposits
• Short-term US Treasuries (highly secure and liquid)
• Money market funds
• Commercial paper

Leading issuers regularly publish reserve breakdowns and undergo third-party audits.

Pegging Mechanisms

Maintaining a 1:1 peg (e.g., “1 USDT ≈ $1”) with a reference currency or asset is central to stablecoin design.

The following market forces help keep the peg intact:

1. Mint and Redemption Mechanisms:

   • If the price rises above $1, new stablecoins are minted and sold, pushing the price down
   • If the price falls below $1, stablecoins are bought and redeemed, reducing supply and lifting the price

2. Arbitrage:

   • Traders exploit price gaps, naturally pushing the value back toward the peg
   • Example: Buy at $0.99 and redeem for $1; mint at $1.01 and sell at $1

3. Overcollateralization for Crypto-Backed Models:

   • Requiring more collateral than issued value ensures the peg is maintained even if collateral prices drop
   • Automated liquidation triggers if collateralization falls below thresholds

4. Algorithmic Supply Adjustments:

   • Smart contracts automatically expand or contract supply in response to price changes

These combined mechanisms help restore the peg if temporary deviations occur.

Transparency and Audit Infrastructure

To demonstrate sufficient reserves, many issuers publish regular audits and “proof of reserves.”

These independent attestations typically disclose:

• Total reserves held
• Breakdown by asset class (cash, government bonds, etc.)
• Total stablecoin supply
• Reserve ratio (reserves divided by supply)

Institutions like the Bank for International Settlements (BIS) now classify stablecoins as follows:

• Payment Stablecoins: Used mainly for payments and transfers, prioritizing safety and liquidity
• Investment Stablecoins: Designed to offer yield and serve as investment vehicles

Stablecoins fully backed by high-quality liquid assets (like US Treasuries) and that don’t directly yield on-chain returns are increasingly preferred as payment infrastructure, aligning with regulatory priorities for financial system stability.

Stablecoin Benefits

Stablecoins combine “the convenience of cryptocurrency” with “the stability of fiat,” offering unique advantages.

Price Stability Amid Volatility

The primary benefit of stablecoins is their ability to deliver price stability even during periods of extreme crypto market volatility.

When markets turn bearish, traders and investors can convert their holdings to stablecoins to protect asset value—without cashing out to a bank or leaving the crypto ecosystem.

This makes stablecoins a “safe harbor” and supports the overall liquidity of crypto markets.

Efficiency in Global Payments and Remittances

Stablecoins enable faster, cheaper international transfers compared to traditional banking.

Traditional remittances suffer from:

• Slow settlement (multiple days)
• High fees (often 5–10%)
• Exchange rate risks
• No transfers outside business hours or on weekends

Stablecoins address these issues:

• Settlements in minutes or hours
• Fees are a fraction of legacy systems (sometimes less than 10%)
• Minimal FX risk due to price stability
• 24/7/365 availability

For instance, remitting $200 from Sub-Saharan Africa using stablecoins can cut costs by about 60% compared to fiat-based methods.

This efficiency is especially valuable in the “remittance” sector, where migrants send money home.

Driving Financial Inclusion

In areas with limited banking access or unstable local currencies, stablecoins empower individuals to join the global economy.

With only a smartphone, users can:

• Protect assets from high inflation
• Make international payments and transfers
• Shop for goods and services online
• Access decentralized finance (DeFi) services

Stablecoins bring financial services to the world’s unbanked and can help close the economic gap.

Backbone of DeFi (Decentralized Finance)

Stablecoins are foundational assets for most DeFi protocols.

Their roles within DeFi include:

• Lending and borrowing without price risk: Users transact in stablecoins rather than volatile assets
• Liquidity provision for DEXs: Stablecoins anchor trading pairs and ensure liquidity
• Collateral for borrowing: Used as collateral to borrow other crypto assets
• Yield generation: Earn relatively stable returns through lending and yield farming

The DeFi ecosystem relies on stablecoins as much as it does on any other asset class.

Bridge and Cross-Chain Applications

Bridge stablecoins are an innovative category that makes it easy to move assets between blockchains.

Platforms like Bridge (acquired by Stripe for $1.1 billion) enable seamless cross-chain stablecoin transfers.

This allows users to:

• Move USDC from Ethereum to Solana for lower trading fees
• Use DeFi services across multiple blockchains efficiently
• Optimize asset management by leveraging each chain’s strengths

As cross-chain technologies evolve, stablecoins become even more versatile.

Stablecoin Risks and Challenges

Despite their strengths, stablecoins have important risks and challenges. Understanding these is critical for safe usage.

Regulatory Scrutiny

As stablecoins grow in importance, regulators are intensifying their oversight.

Key concerns for governments and financial authorities include:

• Financial stability: A major stablecoin collapse could threaten the system
• Monetary policy impact: Broad adoption might weaken central bank tools
• Consumer protection: Users could lose funds if reserves are lacking
• Anti-money laundering: High anonymity could enable illicit use

In response, many countries are developing clear regulatory frameworks.

In the US, both houses of Congress are working on bills (like the STABLE and GENIUS Acts) that set reserve and transparency requirements for stablecoin issuers.

The EU’s Markets in Crypto-Assets Regulation (MiCA) bans algorithmic stablecoins and mandates strict reserve rules for all others.

Reserve Transparency Issues

Opaque reserve management remains a major concern for stablecoins.

Issuers like Circle (USDC) publish regular, detailed reports, but others have faced criticism for lacking transparency.

Risks of poor transparency include:

• Uncertainty about full asset backing
• Potential inability to meet large redemption requests
• Poor reserve management by issuers

Choose stablecoins from issuers that are regularly audited and disclose full reserve details.

Depegging (Price Dislocation) Risk

There have been notable cases where stablecoins lost their peg.

The collapse of TerraUSD (UST) in May 2022 is the most infamous, wiping out $45 billion in value in a week and demonstrating the dangers of algorithmic models.

Key causes of depegging include:

• Market panic: Surges in redemption requests outstrip reserves
• Illiquid reserves: Assets can’t be converted to cash quickly
• Algorithm failures: Peg-maintenance mechanisms break down
• Loss of trust: Doubts about issuer solvency spread

Even fiat-backed stablecoins can briefly lose their peg during stress or when issuer solvency is doubted.

However, well-managed fiat-backed stablecoins typically recover quickly from brief dislocations.

Centralization and Security Risks

Most leading stablecoins are issued by centralized entities, which presents several risks:

1. Counterparty risk:

   • User funds are at risk if the issuer fails
   • Poor reserve management can jeopardize redemptions

2. Single points of failure:

   • System hacks or technical failures can disrupt the ecosystem
   • Regulatory intervention can halt operations

3. Censorship risk:

   • Stablecoins can freeze or blacklist addresses
   • While necessary for compliance, this may undermine the permissionless ethos of crypto

4. Trust dependency:

   • Users must trust issuers’ management and redemption policies
   • This reliance conflicts with the “trustless” principle of blockchain

Interest in decentralized stablecoins (such as DAI) is growing, but decentralization introduces its own risks and complexities.

Stablecoin Use Cases

From individual users to corporations, stablecoins are leveraged in a wide array of scenarios. Main applications include:

Trading and Investment

Stablecoins serve as key trading pairs on crypto exchanges.

When selling assets like Bitcoin or Ethereum, traders can shift into stablecoins rather than fiat, gaining:

• Lower fees: Save on fiat withdrawal costs
• Faster settlement: No bank transfer delays
• Easy reinvestment: Quickly re-enter markets when conditions improve
• Stable benchmarks: Price other assets against a non-volatile reference

For investors, stablecoins offer a “safe parking spot” during volatility, ready for rapid reinvestment when the market stabilizes.

Payments and Commerce

Stablecoins’ price stability makes them ideal for everyday transactions and payments.

With volatile assets like Bitcoin and Ethereum, merchants face:

• Price swings between order and settlement
• Constantly shifting price displays
• Both sides bear price risk

Stablecoins resolve these issues, providing:

• Consistent purchasing power
• Stable and clear prices (e.g., “This item is 100 USDC”)
• Simplified accounting (fixed value)
• Lower transaction costs than traditional payment systems

As a result, more merchants are accepting stablecoins for online shopping and service payments.

Remittances and Cross-Border Payments

Traditional international transfers via banks or remittance providers are slow and expensive:

• Processing times of days to a week
• Fees of 5–10% or more
• Opaque or unfavorable exchange rates
• No service on weekends or holidays

Stablecoins deliver marked improvements:

• Near-instant settlement: Minutes to hours
• Significantly lower fees: Often below 1%
• Transparency: Blockchain tracking
• 24/7/365 service: Always available

In the global remittance market—worth hundreds of billions of dollars—stablecoins can directly improve recipients’ lives by reducing costs.

Value Preservation in High-Inflation Markets

In countries with runaway inflation or strict capital controls, stablecoins offer a way to preserve purchasing power.

When local currency rapidly loses value, residents may try to:

• Hold foreign cash (especially US dollars)
• Open overseas accounts
• Buy gold or other physical assets

Each approach has drawbacks:

• Obtaining foreign currency is difficult or illegal
• Opening foreign accounts is challenging
• Physical assets are cumbersome to store and trade

Stablecoins overcome these barriers:

• Accessible with only a smartphone
• Convert local currency to USD-pegged stablecoins to preserve value
• No need for physical cash or overseas accounts
• Easy to convert back as needed

This underscores stablecoins’ role as a tool for “financial inclusion” in unstable economies.

Expanding Use in DeFi Ecosystems

As the foundation of decentralized finance, stablecoins power diverse financial services.

Lending and Borrowing

On DeFi lending platforms like Aave and Compound, users can:

• Lend: Earn interest (usually several percent annually) by lending stablecoins
• Borrow: Deposit crypto assets as collateral to borrow stablecoins

This enables even those without bank accounts to access global finance.

Liquidity Provision

On decentralized exchanges (DEXs), stablecoin pairs anchor liquidity pools. Liquidity providers earn a share of trading fees as rewards.

Yield Farming

Providing stablecoin liquidity to DeFi protocols can earn users additional reward tokens—a popular, relatively low-risk yield strategy called “yield farming.”

Collateral for Synthetic Assets

Stablecoins serve as collateral for creating synthetic assets—digital representations of stocks, commodities, and other real-world instruments—allowing indirect exposure without direct ownership.

In summary, stablecoins are vital to the innovation and practical utility of DeFi.

Stablecoin Regulatory Landscape

Stablecoin regulation is evolving quickly around the globe, as authorities recognize their systemic importance.

The Current Regulatory Environment

Regulatory approaches to stablecoins vary by jurisdiction. Some regions provide well-defined guidance, while others remain cautious.

Key concerns include:

• Systemic risk: Failure of a large stablecoin could impact the broader financial system
• Consumer and investor protection: Preventing losses from inadequate reserves or poor practices
• AML/CFT compliance: Addressing money laundering and terrorism financing risks
• Monetary policy impact: Potential to weaken central bank authority
• Banking sector impact: Outflows from bank deposits into stablecoins may affect bank liquidity

Regional Approaches

United States

The US Congress is advancing legislation—including the STABLE Act and GENIUS Act—that would require:

• Full reserve backing: Issuers must hold safe assets equal to outstanding stablecoins
• Transparency: Regular reserve audits and disclosures
• Federal oversight: National-level supervision
• Licensing for issuers

Additionally, in April 2025, the SEC clarified that certain “covered stablecoins” with proper reserves and redemption rights may not be treated as securities under specific conditions—an important move toward regulatory clarity.

European Union (EU)

The EU implemented the Markets in Crypto-Assets Regulation (MiCA) in 2023.

Key features:

• Ban on algorithmic stablecoins: Only asset-backed stablecoins are allowed
• Third-party custody of reserves: Reserves must be held by independent custodians
• Strict issuer requirements: Capital, governance, and risk management standards
• Additional requirements for large stablecoins: Stricter rules for systemically important tokens

MiCA is one of the world’s most comprehensive stablecoin regulations.

Singapore

The Monetary Authority of Singapore (MAS) has established a framework for Single-Currency Stablecoins (SCS) pegged to the Singapore dollar or G10 currencies.

Key focus areas:

• Value stability
• Capital adequacy
• Redemption rights
• Disclosure of reserve management

Singapore aims for a balance of innovation and robust risk management.

Hong Kong

Hong Kong is similarly building a framework for fiat-collateralized stablecoins, seeking to strengthen its role as an international financial center. The focus is on sound reserve management, transparency, and consumer protection.

The Future of Stablecoin Regulation

Stablecoin regulation is likely to develop along these lines:

1. Bank-style regulation:

   • Capital and reserve requirements, regular audits, and licensing for issuers

2. Greater transparency:

   • Detailed reserve disclosures, possibly in real time

3. Enhanced consumer protection:

   • Clear redemption rights
   • Deposit insurance-style protection for issuers’ failure
   • Stronger risk disclosures

4. Integration with traditional finance:

   • Interoperability with banks and payment systems
   • Frameworks for coexistence with CBDCs

5. International harmonization:

   • Cross-border regulatory coordination
   • Standards set by bodies like BIS and the Financial Stability Board

In the US, the current administration is expected to support stablecoin regulation that safeguards the dollar’s global supremacy while legitimizing the asset class.

While stricter rules may raise short-term compliance costs, they should ultimately foster market stability, reliability, and broader institutional adoption.

Summary: The Future of Stablecoins and Strategic Adoption

Stablecoins have scaled rapidly from tens of billions to over $300 billion, cementing their role as a vital bridge between blockchain and traditional finance.

The involvement of major firms—PayPal, Stripe, and leading financial institutions—underscores the growing importance of stablecoins in the digital economy.

Stablecoin Outlook

Key directions for future development include:

Regional Specialization

Stablecoins will increasingly be tailored to regional needs and regulatory climates, such as:

• Asia-focused stablecoins
• Industry- or use-case-specific tokens
• Local-currency-pegged stablecoins

Regulatory Clarity and Market Maturity

As global regulatory frameworks solidify, expect a safer, more transparent marketplace that encourages:

• Institutional participation
• Corporate treasury adoption
• Greater consumer confidence and mass adoption

Deeper Integration with Traditional Finance

Stablecoins are set to become more seamlessly integrated with banking and payment infrastructure, enabling:

• Unified management of bank accounts and stablecoin wallets
• Use in credit cards and digital payment platforms
• Settlement of securities trades

Technological Innovation

Anticipated advances include:

• Improved cross-chain interoperability
• Enhanced scalability for high-volume, low-cost transactions
• Better privacy solutions balancing transparency and confidentiality
• Deeper smart contract integration for automated financial services

Stablecoin Strategies for Individual Investors

Effective use of stablecoins opens new opportunities for individuals, such as:

1. Efficient international payments:

   • Lower remittance costs
   • Streamline family transfers and cross-border business

2. DeFi participation:

   • Earn interest through lending
   • Collect rewards via liquidity provision
   • Access innovative financial products

3. Inflation protection:

   • Safeguard assets in high-inflation markets
   • Maintain purchasing power

4. Efficient crypto trading:

   • Safe haven during volatility
   • Lower trading fees as a quote asset

5. Portfolio diversification:

   • Bridge between traditional and crypto assets
   • Risk management tool

Tips for Safe Stablecoin Usage

When using stablecoins, keep these best practices in mind:

1. Choose reputable issuers:

   • Regular independent audits
   • Transparent reserve disclosures
   • Regulatory supervision

2. Understand risks:

   • Depegging events
   • Issuer insolvency
   • Regulatory changes

3. Diversify holdings:

   • Spread across multiple stablecoins
   • Balance with non-crypto assets

4. Stay informed:

   • Monitor regulatory and issuer developments
   • Track overall market trends

5. Align usage with your goals:

   • For short-term value preservation
   • As a remittance tool
   • For DeFi activities

Final Thoughts

In the fast-evolving digital finance landscape, stablecoins are set to play an even greater role as a bridge between traditional finance and crypto assets.

Stay up to date and use stablecoins in ways aligned with your investment goals and risk tolerance—that’s the key to navigating and thriving in digital finance.

Stablecoins are powerful drivers of financial democratization and globalization. With the right knowledge and a prudent approach, they can dramatically expand your financial options.

FAQ

What are stablecoins and how do they differ from regular cryptocurrencies?

Stablecoins are crypto assets pegged to fiat currencies like the US dollar. Unlike typical cryptocurrencies, they’re designed for price stability, making them practical for payments and everyday transactions.

What types of stablecoins exist? (USDT, USDC, DAI, etc.)

Stablecoins fall into two main categories. USDT and USDC are “digital money-like” stablecoins backed by fiat, while DAI and similar tokens use crypto collateral or algorithms to maintain value. USDT and USDC account for over 80% of the market.

Why are stablecoin prices stable? How does it work?

Stablecoins achieve stability by pegging to fiat currencies or real-world assets. Issuers hold reserves equal to circulating supply and guarantee 1:1 redemption. Arbitrage trading automatically aligns prices if supply and demand drift apart.

What should beginners prioritize when choosing a stablecoin?

Focus on stability and liquidity. Fiat-backed stablecoins like USDT and USDC are best for newcomers due to their reliability and high trading volumes. Always check transparency and issuer credibility.

How do you buy stablecoins? What’s the process at an exchange?

Sign up for a crypto exchange, complete identity verification, deposit funds, select your stablecoin, and place your order. Zero-fee platforms can further lower acquisition costs.

Are stablecoins safe? What risks should users consider?

Stablecoins are generally stable and convenient but not entirely risk-free. Key risks include issuer credibility, regulatory shifts, and reserve transparency. Always verify issuer reliability and current regulations before purchasing.

Where’s the safest place to store stablecoins?

Use a hardware wallet or a reputable crypto exchange. Prioritize strong security, good reputation, and review your security settings regularly.

How do stablecoins differ from fiat currencies (like yen or dollars)?

Stablecoins are blockchain-based crypto assets without legal tender status, aiming for price stability by tracking fiat or physical assets. Fiat currencies are government-issued legal tender. Stablecoins offer low fees and instant settlement.