“The chill cousin of Bitcoin who just wants a quiet life.”

🧊 What Are Stablecoins?

“Crypto without the rollercoaster.”

Stablecoins are digital currencies designed to stay stable in price — usually pegged to a fiat currency like the US Dollar or British Pound. They’re the calm in crypto’s chaos.

Think of them as the “cash” of the crypto world — always around £1/$1, and not here to moon… just here to chill.

🧠 Why Stablecoins Matter

✅ Low volatility: You don’t have to watch the price 24/7

✅ Used for trading: They’re the go-to “resting place” when traders exit a volatile asset

✅ Fast global transfers: Skip the banks, send money in seconds

✅ DeFi use: You can earn yield, lend, or borrow — all with stablecoins

✅ Fiat on/off ramps: Makes moving between crypto and real-world money smooth

🔥 6 Popular Stablecoins (Explained Simply)

💵 1. Tether (USDT)

Launched: 2014
What it does: The most widely used stablecoin. Used globally for trading, payments, and DeFi.
Known for: Massive volume… but also controversy around whether all reserves are properly backed.
2024 Market Cap: ~$110 billion
Fun Fact: Tether was the first stablecoin, and it’s still the most traded token in crypto.

🪙 2. USD Coin (USDC)

Launched: 2018 by Circle and Coinbase
What it does: A fully-backed, transparent stablecoin that’s often preferred by institutions.
Known for: Monthly audits and high compliance — considered the “clean cut” stablecoin.
2024 Market Cap: ~$32 billion
Fun Fact: Big names like Visa and Shopify have used USDC in payment integrations.

🏦 3. DAI

Launched: 2017 by MakerDAO
What it does: A decentralised stablecoin backed by crypto collateral (not fiat in a bank).
Known for: Being trustless and managed by a DAO (Decentralised Autonomous Organization).
2024 Market Cap: ~$5 billion
Fun Fact: DAI is one of the OG DeFi tokens and helps keep the Ethereum ecosystem pumping.

🧊 4. TrueUSD (TUSD)

Launched: 2018
What it does: An alternative to USDT/USDC that offers real-time audits of its fiat reserves.
Known for: Working closely with institutions and having strong legal structure.
2024 Market Cap: ~$500 million
Fun Fact: It was one of the first stablecoins to work with regulated trust companies for its reserves.

🇬🇧 5. Poundtoken (GBPT)

Launched: 2022 by Blackfridge
What it does: The UK’s first fully regulated GBP stablecoin — great for British users.
Known for: Being UK FCA compliant and offering a homegrown fiat-pegged option.
2024 Market Cap: Smaller and growing — still early!
Fun Fact: You can swap crypto and cash out directly in GBP using GBPT on supported platforms.

🪙 6. Frax (FRAX)

Launched: 2020
What it does: A partially algorithmic stablecoin — a hybrid that uses crypto and code to stay stable.
Known for: Pushing innovation in stablecoin mechanics, yield strategies, and decentralisation.
2024 Market Cap: ~$650 million
Fun Fact: Frax is building an entire ecosystem including FraxLend and FraxSwap.

🧠 Why Do Stablecoins Exist?

💱 Easy trading: Swap into a “dollar” when markets go bananas.

🏦 No banks needed: Keep digital dollars in your crypto wallet.

🛒 Spendable: Used for buying stuff, sending money, or DeFi (earning interest, loans, etc.).

🧮 Avoiding fees: Sometimes easier than jumping in and out of actual bank currency.

⚠️ Stablecoins Are Not Risk-Free

Let’s bust the myth that they’re 100% safe just because they don’t fluctuate wildly like Bitcoin. Here are the risks you need to know:

🏦 1. Centralization

Most stablecoins (like USDT and USDC) are issued by companies. That means if the company goes bust or messes up, your coins could become... not-so-stable.

➡️ Some people prefer decentralized ones like DAI, which run on code — not corporations.

🤷 2. Lack of Transparency

Tether (USDT) has been accused of not fully backing its coins with real dollars in the past. The problem? If too many people cash out at once and there’s not enough money behind it... yikes.

🔓 3. Smart Contract Risk

Even decentralized stablecoins like DAI rely on complex code. If that code has bugs or gets hacked, your "stable" coin could get unstable real quick.

🪤 4. Depegging

Sometimes a stablecoin loses its peg. Instead of 1 USDT = $1, it might suddenly drop to $0.95 or lower. This has happened before — and it’s scary.

🧑‍⚖️ 5. Regulation Risks

Governments are still figuring out how to handle stablecoins. In the future, new rules could affect how they’re issued, used, or taxed.

Are Stablecoins Safe?

✅ Useful? Absolutely.
✅ Stable? Most of the time.
⚠️ Guaranteed safe? Nope. Do your own research, always.

🔍 Real-World Use Cases

Traders use them to dodge crypto crashes

DeFi users lend/borrow using them

Businesses use them for fast, borderless payments

You might use them to learn crypto without diving straight into volatility

Time to look at Altcoins, which is any crypto that isn't Bitcoin.