Like the name implies the term "crypto" or digital means any asset that has a steady value in comparison to a conventional financial asset is referred to as a stablecoin. The value of stablecoin is secured by risk-free assets like gold or fiat currencies which decreases the risk of price volatility. One fiat currency, an entire group of currencies or other valuable assets may be the base asset.
Stablecoins attempt to counterbalance the volatility of digital assets by creating an enduring and stable environment that encourages the use of digital currency. They bring the stability of cash currency with the security and decentralization that comes with cryptocurrency to give you the perfect combination.
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