Stablecoin
A stablecoin is a cryptocurrency designed to maintain a fixed value, usually pegged to the US dollar. Occasionally it can be to other large fiat currencies llike the Euro or pound.
Quick Reference:
Reduces volatility. Cash reserves. Payment Usage.
Expanded Explanation:
Unlike Bitcoin or Ethereum, which rise and fall in value, stablecoins aim to stay the same price. For example 1 USDT (Tether) should always be equal to $1 USD. This makes them useful for payments, protexting against volatility and trading between cryptocurrencies. Some stable coins are back by cash reserves in banks, while others use crypto currency reserves to hold their peg. Stable coins are one of the simplest ways to step into Crypto without facing constant price swings. They are however exposed to governance risk.