Stablecoins are stable digital currencies that differ from other cryptocurrencies by not presenting sudden value fluctuations. While bitcoin, for example, rose 27% in one month but fell 15% in the year, stablecoins maintain a stability that makes them more predictable for those who wish to preserve the value of their wealth.
The main differentiating factor of these digital currencies is that their value is pegged to a real currency, such as the US dollar. This means that, unlike bitcoin and other cryptocurrencies, the investor can have a clearer expectation of how much their wealth will be worth in the future, without surprises caused by extreme market variations.
Besides value stability, cryptocurrencies in general have an important function which is allowing transfers to anyone anywhere in the world, practically without costs and without the need for intermediary financial institutions that charge high fees and rates to carry out these operations.
From an operational standpoint, investing in stablecoins is considered simpler. For this, one just needs to open an account on a cryptocurrency exchange or broker platform that offers this type of service.
