What does stablecoin mean
Jul 07, 2025 pm 06:39 PMStablecoins are digital currencies with stable value that are often pegged to assets such as the US dollar or gold, designed to provide price stability to the crypto market. Its core role is to serve as a "safe haven" to help investors avoid market fluctuations, conduct daily trading and store of value. According to different support mechanisms, stablecoins are mainly divided into three categories: 1. Stabilized coins with fiat currency collateral, such as USDT and USDC; 2. Stabilized coins with cryptocurrencies collateral, such as DAI; 3. Algorithmic stablecoins, such as UST. Mainstream trading platforms include Binance, Ouyi, Huobi, Gate.io, Coinbase and Kraken, all of which provide rich stablecoin trading pairs and good liquidity.
Stablecoins are special cryptocurrencies designed to provide price stability, and their value is often pegged to fiat currencies such as the US dollar or commodities such as gold. As bridges connecting the traditional financial world with the crypto assets, they play a crucial role in circumventing market volatility, conducting daily transactions and store of value.
Mainstream Bitcoin Exchanges in 2025:
Ouyi okx :
Binance binance:
Huobi htx:
What is a stablecoin
Simply put, a stablecoin is a digital currency with stable value. Unlike cryptocurrencies with drastic price fluctuations such as Bitcoin or Ethereum, stablecoins work to anchor their market prices to a relatively fixed level through various mechanisms, most commonly maintaining a 1:1 ratio to the US dollar.
Its core role is to provide a "safe haven" for the volatile crypto market. When investors expect the market to fall, they can convert other cryptocurrencies they hold into stablecoins to lock in profits or avoid losses without having to withdraw funds completely from the crypto ecosystem to exchange for fiat currencies.
The main types of stablecoins
According to the support mechanism behind it, stablecoins are mainly divided into the following three categories:
1. Stabilizer currency mortgage
This is the most common and direct type. Such stablecoins are supported by real fiat currencies (such as US dollar, euro) reserves, which are usually stored and audited by a centralized entity. In theory, for every unit of stablecoin is issued, the issuer will deposit fiat currency of equivalent value in its bank account. Representative items: USDT (Tether), USDC (USD Coin).
2. Cryptocurrency mortgage stablecoin
Such stablecoins are backed by other cryptocurrencies such as Ethereum as collateral. To cope with the risk of price fluctuations in the collateral itself, the system usually requires "over-collateralization". For example, users may need to lock in Ethereum worth $200 to mint a stablecoin worth $100, and the extra part is a buffer set to absorb market volatility. Representative project: DAI.
3. Algorithm stablecoin
This type of stablecoins does not rely on any direct collateral assets, but automatically adjusts their supply through algorithms in smart contracts to maintain price stability. When its price is higher than the anchor value, the algorithm issues additional tokens; when the price is lower than the anchor value, the tokens will be destroyed or repurchased. This pattern is complex and faces high risks. Representative items: UST that has appeared.
Recommended mainstream stablecoin trading platforms
The most important way to acquire and trade stablecoins is through centralized cryptocurrency exchanges. Here are some of the world's leading platforms that offer rich stablecoin trading pairs:
1. Binance
As the world's largest cryptocurrency exchange, Binance provides transactions of almost all mainstream stablecoins, including USDT, USDC, BUSD, TUSD, etc. It has excellent liquidity, rich trading pairs and a complete financial ecosystem, and is one of the preferred platforms for trading stablecoins.
2. Ouyi (OKX)
OKX is another top global exchange known for its powerful trading system and rich product line. The platform supports recharge, withdrawal and transactions of a variety of stablecoins, and provides a variety of transaction methods such as spot and contracts. The user experience is smooth and the depth is good.
3. Huobi
Huobi is a well-established exchange with a huge user base around the world. It provides comprehensive support for mainstream stablecoins, security and stability have been tested in the long term and are a platform trusted by many Asian users.
4. Gate.io
Gate.io is known for its massive currency selection. In addition to mainstream stablecoins such as USDT and USDC, it has also launched many emerging or niche stablecoin projects. This is a great choice for users who want to explore more asset options.
5. Coinbase
Coinbase is the largest compliant exchange in the United States, and is favored by novice and institutional investors for its high level of security and ease of use. It is also the co-issuer of USDC, the world's second largest stablecoin, and therefore has a natural advantage in trading and use of USDC.
6. Kraken
Kraken is one of the oldest and best-reputed exchanges, known for its outstanding security measures and sound operations. The platform supports a variety of stablecoins, which is an important entrance for European and American users to exchange fiat currency and stablecoins.
The above is the detailed content of What does stablecoin mean. For more information, please follow other related articles on the PHP Chinese website!

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