Published on July 20th, 2018 | by bitcoin0
Island of Soundness: Steady Coins Keep Drawing in Big-League Investors
As per its name, stable coins are designed to keep their price fixed, making them immune to manipulation trading.
On a smaller scale, stable coins allow casual investors to trade seamlessly, swiftly transferring money between crypto exchanges and bypassing conventional, time-consuming bank wire transfers — many cryptocurrency exchanges do not support fiat at all, making such stable coins an essential unit of account.
While any cryptocurrency can potentially fulfill that role, stable coins are more useful for retail purposes due to their low — nearly nonexistent — volatility.
Three types of stable coins can be outlined, depending on the type of collateralization they entail.
Nevertheless, the concept of a stable coin itself lives on and continues to attract investors, as new coins emerge.