What is stablecoin? What is it for?
Jul 11, 2025 pm 06:48 PMStablecoins are cryptocurrencies anchored by value and stable assets, and are mainly used to provide transaction media, safe-haven assets, support DeFi and realize cross-border payments. Its core uses include: 1. As a pricing and trading medium for cryptocurrency transactions, improving transaction convenience; 2. As a safe-haven asset when market fluctuates, helping investors lock in profits or reduce losses; 3. As a basic collateral and value unit in the decentralized financial system; 4. Used to achieve fast and low-cost cross-border transfers and payments.
In the volatile cryptocurrency market, stablecoins provide a digital asset with stable value, acting as a bridge to connect traditional finance and the crypto world. They are not only safe havens for investors, but also an indispensable cornerstone for the operation of the entire crypto ecosystem.
Exchange of stablecoins in 2025:
Ouyi okx official website direct access :
Binance official website direct:
Huobi htx official website direct:
What exactly is a stablecoin?
Simply put, a stablecoin is a cryptocurrency with value anchored to some "stable" asset. The most common anchor object is fiat currency, such as the US dollar. The value of a USDT (Tether) or USDC (USD Coin) is theoretically equivalent to one dollar. This design aims to eliminate the severe price fluctuations of mainstream cryptocurrencies such as Bitcoin and Ethereum.
It would be easier to understand to imagine stablecoins as “digital dollars” on blockchain. It has the advantages of cryptocurrencies, such as fast global transfers, transparent traceability, and at the same time avoiding the risk of price surges and plummeting, allowing the value to be preserved stably.
What are the main uses of stablecoins?
Stablecoins have far more than just "stable", and they play a variety of key roles in the crypto world:
As a trading medium
In cryptocurrency exchanges, most pairs are based on stablecoins, such as BTC/USDT or ETH/USDC. Using stablecoins to denominate and trade is more convenient, more intuitive, and easier to calculate profit and loss than directly exchanging one volatile cryptocurrency.
As a safe haven asset
When the crypto market falls sharply, investors can quickly convert assets such as Bitcoin in their hands into stablecoins to lock in profits or avoid further losses. When the market rebounds, use stablecoins to buy other crypto assets, which is very flexible.
For Decentralized Finance (DeFi)
Stablecoins are the blood of the DeFi world. Whether it is decentralized lending or income farming, stablecoins provide reliable units of value and collateral. Users can stake stablecoins to earn interest, and their yields are usually much higher than traditional bank savings.
Achieve convenient cross-border payments
Compared with the days of wire transfers in traditional banks and the high handling fees, cross-border transfers through stablecoins are almost instant and have extremely low cost. This provides great convenience for international trade and personal remittances.
Recommended top stablecoin trading platforms
Acquisition and trading stablecoins usually require a centralized exchange. Here are the most mainstream and trustworthy platforms around the world, all of which offer a wide range of stable currency types and trading pairs.
1. Binance
As the world's largest cryptocurrency exchange, Binance provides unparalleled liquidity. Users can easily buy, sell, trade and store almost all mainstream stablecoins here, including USDT, USDC, BUSD, TUSD, etc. Its C2C trading market is also extremely active, making it easier for users to buy stablecoins directly using fiat currency.
2. Ouyi (OKX)
Ouyi is known for its strong security system and rich product line. The platform not only supports spot and contract transactions of a variety of stablecoins, but also provides stablecoin-related financial products, such as Yubibao, allowing users to obtain passive returns while holding stablecoins. The depth and speed of its transactions have also been well received.
3. Huobi
Huobi is one of the oldest exchanges, especially in the Asian market with a deep user base and brand reputation. The platform supports stablecoins very comprehensively, has smooth transaction processes, and has undergone a long-term test. It is a reliable choice that both beginners and veterans trust.
4. Gate.io
Gate.io is known for its massive currency selection and is known as the "treasure of altcoins". Stablecoins are an indispensable medium for trading various emerging crypto assets here. Therefore, Gate.io provides very good stablecoin support and trading depth, making it an ideal platform for investors exploring new projects.
5. KuCoin
KuCoin also attracts a large number of users with its rich currency and user-friendly interface. There are many stablecoin trading pairs on the platform, which are good in liquidity, and often launch potential new projects, providing a wealth of investment opportunities for stablecoin holders.
6. Bybit
Bybit was originally known for derivatives trading, and its spot market is now developing rapidly. The platform is particularly good for stablecoins with stronger compliance such as USDC, and provides convenient redemption and financial management functions, suitable for users with higher requirements for fund safety and compliance.
The above is the detailed content of What is stablecoin? What is it for?. For more information, please follow other related articles on the PHP Chinese website!

Hot AI Tools

Undress AI Tool
Undress images for free

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Clothoff.io
AI clothes remover

Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Article

Hot Tools

Notepad++7.3.1
Easy-to-use and free code editor

SublimeText3 Chinese version
Chinese version, very easy to use

Zend Studio 13.0.1
Powerful PHP integrated development environment

Dreamweaver CS6
Visual web development tools

SublimeText3 Mac version
God-level code editing software (SublimeText3)

Hot Topics

Yes, you can get USDT for free in the following 5 ways: 1. Participate in airdrop tasks on mainstream exchanges, such as registering and giving away, completing novice tasks, and inviting friends to get rewards; 2. Join the blockchain project community and obtain airdrops through Web3 social platform or Twitter/Discord interaction; 3. Participate in the "test network" activity, register the test chain address and simulate the use of DApp to get incentives; 4. Complete tasks on the cryptocurrency navigation platform to receive novice gift packages, participate in sign-in, lottery and other activities; 5. Interact with the content creation and community, and publish original content to obtain USDT rewards from the project party. At the same time, you need to pay attention to security risks, do not fill in private keys, do not believe in scams, and choose mainstream platforms to participate.

The duration of the airdrop dividend is uncertain, but the LayerZero, StarkNet and ZK ecosystems still have long-term value. 1. LayerZero achieves cross-chain interoperability through lightweight protocols; 2. StarkNet provides efficient and low-cost Ethereum L2 expansion solutions based on ZK-STARKs technology; 3. ZK ecosystem (such as zkSync, Scroll, etc.) expands the application of zero-knowledge proof in scaling and privacy protection; 4. Participation methods include the use of bridging tools, interactive DApps, participating test networks, pledged assets, etc., aiming to experience the next generation of blockchain infrastructure in advance and strive for potential airdrop opportunities.

USDT is not a scam, but there are risks. 1. Tether provides liquidity in the crypto market by issuing USDT, a stablecoin anchored by the US dollar; 2. The company's background is related to Bitfinex, and has been fined for audit issues but has increased transparency; 3. The reserve assets are mainly US Treasury bonds rather than pure cash, and there are certain financial risks; 4. Face risks such as insufficient audit frequency, centralized control and compliance restrictions; 5. The USDT market is highly accepted, but trust needs to be based on continuous disclosure and compliance operations. Overall, USDT is trustworthy but does not equal zero risk, and users should be cautious.

To transfer USDT to the exchange for transactions, you must first confirm that the chain type matches, the address is correct, and complete real-name authentication. 1. Register and authenticate the mainstream exchange account with real name; 2. Confirm that the wallet is consistent with the USDT chain type of the exchange (such as TRC20); 3. Obtain the recharge address of the corresponding chain on the exchange and copy it accurately; 4. Initiate transfers from the wallet and pay the corresponding handling fee; 5. After arrival, you can trade in the spot or contract market; 6. Pay attention to checking the address, avoid transferring to the contract address, and give priority to low-processing networks. The entire process is usually completed in minutes, ensuring operational safety is key.

Is DAI suitable for long-term holding? The answer depends on individual needs and risk preferences. 1. DAI is a decentralized stablecoin, generated by excessive collateral for crypto assets, suitable for users who pursue censorship resistance and transparency; 2. Its stability is slightly inferior to USDC, and may experience slight deansal due to collateral fluctuations; 3. Applicable to lending, pledge and governance scenarios in the DeFi ecosystem; 4. Pay attention to the upgrade and governance risks of MakerDAO system. If you pursue high stability and compliance guarantees, it is recommended to choose USDC; if you attach importance to the concept of decentralization and actively participate in DeFi applications, DAI has long-term value. The combination of the two can also improve the security and flexibility of asset allocation.

DAI is suitable for users who attach importance to the concept of decentralization, actively participate in the DeFi ecosystem, need cross-chain asset liquidity, and pursue asset transparency and autonomy. 1. Supporters of the decentralization concept trust smart contracts and community governance; 2. DeFi users can be used for lending, pledge, and liquidity mining; 3. Cross-chain users can achieve flexible transfer of multi-chain assets; 4. Governance participants can influence system decisions through voting. Its main scenarios include decentralized lending, asset hedging, liquidity mining, cross-border payments and community governance. At the same time, it is necessary to pay attention to system risks, mortgage fluctuations risks and technical threshold issues.

USDT is not suitable as a traditional value-added asset investment, but can be used as an instrumental asset to participate in financial management. 1. The USDT price is anchored to the US dollar and does not have room for appreciation. It is mainly suitable for trading, payment and risk aversion; 2. Suitable for risk aversion investors, arbitrage traders and investors waiting for entry opportunities; 3. Stable returns can be obtained through DeFi pledge, CeFi currency deposit, liquidity provision, etc.; 4. Be wary of centralized risks, regulatory changes and counterfeit currency risks; 5. In summary, USDT is a good risk aversion and transitional asset. If you pursue stable returns, it should be combined with its use in financial management scenarios, rather than expecting its own appreciation.

USDC is safe. It is jointly issued by Circle and Coinbase. It is regulated by the US FinCEN. Its reserve assets are US dollar cash and US bonds. It is regularly audited independently, with high transparency. 1. USDC has strong compliance and is strictly regulated by the United States; 2. The reserve asset structure is clear, supported by cash and Treasury bonds; 3. The audit frequency is high and transparent; 4. It is widely accepted by institutions in many countries and is suitable for scenarios such as DeFi and compliant payments. In comparison, USDT is issued by Tether, with an offshore registration location, insufficient early disclosure, and reserves with low liquidity assets such as commercial paper. Although the circulation volume is large, the regulatory recognition is slightly low, and it is suitable for users who pay attention to liquidity. Both have their own advantages, and the choice should be determined based on the purpose and preferences of use.