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BasicCrypto1 min

A stablecoin is a cryptocurrency designed to hold a stable value, most often pegged to the US dollar (USDT, USDC and others).

In plain words

Stability is achieved in different ways: by the issuer’s reserves, by over-collateralisation in crypto or by algorithms, and not all methods are equally reliable. The risks: an issuer may fail to honour redemption, the price sometimes drifts from the peg, and for some stablecoins the issuer can technically block an address (it depends on the particular coin). The same stablecoin exists on different networks (for example TRC-20 and ERC-20), and you must send it on the network that the recipient supports.

Sources

  1. ethereum.org: Stablecoins — Stablecoins page. Checked 14.10.2026.

Example. You are paid 500 USDT: on an exchange you swap them for hryvnia (for example through P2P) or keep them as “digital dollars”, choosing a network with an acceptable fee.

Related terms

← The whole glossary

Word of the dayCold walletIntermediate

A cold wallet is a way of keeping cryptocurrency keys offline, without a permanent internet connection: a hardware device or a seed phrase written on paper or metal.

Example. You buy a hardware wallet, write the seed phrase on paper and keep it in a safe, while the money for everyday spending stays in a mobile wallet.

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