For those who are unfamiliar with the cryptocurrency sphere, there is a lot to understand about what’s going on. One very important thing you need to know about is Stablecoins, Uphold Login which have been made popular because of their ability to remain constant in price even though cryptocurrency prices fluctuate constantly.

There are three types of Stablecoins On Uphold Login:

1. fiat-collateralized; 2. crypto-collateralized; 3. non-collateralized or pure currency coins.

➔ The first two categories are relatively straightforward, but non-collateralized Stablecoins require some more explanation.

➔ These types of coins do not use any collateral at all and instead rely on economic incentives built into smart contracts to maintain a price floor that will keep them from falling below their intended value.

➔ This means that they function more like digital assets than true cryptocurrencies since they aren’t pegged to anything real (like USD).

Because of these unique characteristics, we won’t be discussing these coins further in our guide. Instead, we will focus on how to buy and sell two of the most common forms of Stablecoins Uphold Login- fiat-collateralized and crypto-collateralized.

● Fiat-Collateralized Stablecoins: This form of Stablecoin involves holding actual cash reserves against each coin issued. Tether (USDT), TrueUSD (TUSD), and Gemini Dollar (GUSD) are all examples of fiat-collateralized coins.

Crypto-Collateralized Stablecoins: Unlike fiat-collateralized coins, crypto-collateralized ones don’t involve holding actual cash reserves against each coin issued. Instead, each coin is backed by an equivalent amount of another cryptocurrency held in reserve. MakerDAO (MKR), DigixDAO (DGD), and Dai (DAI) are all examples of crypto-collateralized coins