Stablecoins are your parachute while flying on a crypto Boeing
There is always a risk that the parachute will not open, but in case of stablecoins, the chances of failure are miserable.
Stablecoins are cryptocurrencies with low volatility, which makes them ideal and the safest crypto to invest in.
Fiat-backed tokens have the backing of a fiat currency such as dollar or euro (or the other fiat) and their prices are almost not affected by market volatility.
Crypto-backed stablecoins actually have an airbag: i.e., they are generally over-collateralized for absorbing price fluctuations as collateral.
Commodity-backed stablecoins pegged to gold or precious metals prices. They are centralized, which protects them from market volatility.
Algorithmic ones use an automatic computer algorithm. If their value grows, the computer program issues more tokens; if it falls too much, it will reduce the supply.
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