What is a stablecoin?


A stablecoin is a digital currency with a value that is pegged to a stable reserve asset.
For example, a national currency for financial instrument i.e US dollar or gold.

What makes stablecoins important?

Tired of making bad investment choices, stablecoins provide an alternative to the non-pegged or volatile cryptocurrencies. In other words, the value of stablecoins is pegged to a stable reserve asset; a national currency like a US Dollar or a financial instrument like gold.

What are the different types of stablecoins?

  • Crypto-Collateralized stablecoins.

Pegged to or backed by other crypto currencies. The crypto currency value in reserves exceeds the value of stablecoins issued.

  • Fiat-Collateralized stablecoins.

Maintain a reserve of a fiat currency such as a US Dollar or a precious material like gold.

  • Algorithmic stablecoins.

The value may or may not be maintained by a reserve asset. The stablecoin maintains its value by controlling its supply though an algorithm. Can be related to a central bank.

What are the most valuable stablecoins?

According to Coin Market Cap, fiat-collateralized stablecoins such as USDT(Tether) and USDC (USD Coin) are ranked highest as the most valuable stablecoins, listed by Market capitalization.

Visit now and choose from a number of different stablecoins for your next investment.

Was the information helpful?

For assistance, contact us via +256 705 972 117 or

To buy or sell crypto, visit

Join our telegram channel for more updates.

Follow us on TwitterFacebook, LinkedIn and Instagram