Mika
VIP Contributor
Stable coins are the coins that are pegged with USD in 1:1 ratio. Stable coins are created by maintaining a reserve with SD, gold, etc. with the traditional finance systems like banks. USDT, BUSD and USDC are some popular stable coins. Unlike, the general understanding of crypto, these stable coins are not decentralized money, these are crwated and managed by private companies. USDT is created by a company called Tether, BSD and USDC belong to exchanges like Binance and Coinbase. Interestingly, Dai is considered a fully decentralized stable coin. The preference for stable coins like USDT in crypto trading is driven by the aim to minimize risks. One of the easiest ways to use stable coins is for strategic crypto trading.