Stablecoins are a type of cryptocurrency (digital asset) designed to maintain price stability by being pegged to real-world assets such as the U.S. dollar or other fiat currencies. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins are designed to be steady in value, making them highly practical for payments, remittances, asset storage, investment, and digital financial services. This post explains stablecoins in an easy and thorough way—covering their definition, key functions, types and collateral mechanisms, how price stability works, associated risks, and future prospects. Key Functions 1. Digital Payment Method Most cryptocurrencies are too volatile for daily payments. Stablecoins, however, stay close to $1 in value, making them suitable for shopping, online transactions, and practical use cases. 2. Borderless Remittances With stablecoins, you can send money anywhere in the world within minutes using just a smartphone. It's faster, cheaper, and more eff...