Stablecoins explained
A stablecoin is a coin designed to keep a steady price, usually one US dollar. Traders use them to step out of other coins without leaving the exchange, to move money between exchanges, and to quote prices: most coins trade against USDT or USDC.
The main kinds
- Backed by cash and bonds (such as USDT and USDC): a company holds reserves and promises to swap each coin for a dollar.
- Backed by other crypto (such as DAI): more crypto is locked up than the coins issued, so prices can fall before the backing runs out.
- Algorithmic: held at a dollar by rules rather than reserves. Some have failed badly.
The risks that remain
- A stablecoin can lose its peg and trade below a dollar, briefly or for good.
- You rely on the issuer: its reserves, its honesty and its regulators.
- Exchanges and countries can restrict or delist a stablecoin.
The stablecoin share
The stablecoin share is the stablecoins' part of the whole crypto market cap. It tends to rise when other coins fall, because stablecoins hold their value while the rest of the total shrinks.
On CheckACoin
Stablecoins have no usual range worth showing, so they're left out of the coin pages and the market list. In the app, stablecoins you hold count as dollars: their history shows amounts, not a buy price.
Every coin page shows its usual range, typical moves, market cap and supply, rebuilt daily.
Explore the market