The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Stablecoins are designed to have a more fixed value than regular cryptocurrencies. This is because they are pegged to other assets, such as the U.S. dollar or gold. The vision is that stablecoins can enjoy the benefits of being a cryptocurrency without the associated extreme volatility - which will go a long way toward helping cryptocurrencies be seen as a viable way to actually buy things. After all, most businesses aren't interested in accepting a payment method that could depreciate the next day. If traditional cryptocurrencies are like investing in high-risk stocks, then stablecoins are like withdrawing cash from an ATM. Do you want to know if stablecoins go up or down? And are you curious about whether the price of this stablecoin is stable? Let the editor of the currency circle tell you about it.

 Do stablecoins go up or down?

Stablecoins also go up and down, and the price is stable in a range, but it is not completely stable. Although stablecoins have smaller fluctuations than other cryptocurrencies and relatively lower risks, they cannot be said to be completely safe. Each stablecoin has its "unstable" points:

·Fiat stablecoins

Since fiat stablecoins are collateralized by real-world fiat currencies, the most intuitive risk is inflation, which will further cause the price of stablecoins to fluctuate. In addition, the place of issuance will also be a major risk. For example, if a certain fiat currency stablecoin is linked to the fiat currency of a small country, the biggest risk it will face is national bankruptcy, which will seriously affect the value of the stablecoin.

· Cryptocurrency stablecoin

The risk faced by cryptocurrency stablecoins should be obvious, that is, the price fluctuation of the collateral currency is too large. As long as the price of the collateral falls below a certain critical point, resulting in insufficient pledge rate, the smart contract will force liquidation. Therefore, in the selection of collateral, generally speaking, a currency with a larger market value will be chosen to reduce the risk of collateral returning to zero.

· Commodity stablecoins

Commodity stablecoins are similar to fiat currency stablecoins. They all have the risk of facing the fluctuation of the value of real-world collateral. If the value of the collateral falls seriously, it is very likely to cause the stablecoin to decouple and further affect the price of the currency.

· Algorithmic stablecoins

Algorithmic stablecoins mainly rely on protocol algorithms to control the issuance volume through smart contracts, and the most well-known risk is undoubtedly the "death spiral".

 Summary of the advantages of stablecoins

· Convenient to exchange for other cryptocurrencies

Stablecoins are one of the most common trading pairs in exchanges. Because the price of stablecoins is relatively stable, it is also more convenient to trade. Currently, the most commonly used stablecoin in exchanges is USDT. Because it was issued the earliest and has accumulated the largest market value and circulation, most exchanges will use USDT as the main trading pair.

· Reduce asset volatility

We all know that the market volatility of cryptocurrencies is very large, and stablecoins will play their role at this time. When you have spare money today, you don’t need to convert the money back to fiat currency or hold a certain cryptocurrency. We can place idle funds by holding stablecoins linked to fiat currencies. This not only reduces the volatility risk of idle funds, but also keeps funds in the crypto market continuously.

· Reduce time costs

Since most people use stablecoins as their means of trading, the liquidity of stablecoin trading pairs will be relatively much higher. We all know that "liquidity" is very important for traders. Only with high liquidity can we effectively reduce time costs. If liquidity is insufficient, it will make it difficult to complete transactions, and further spend more time waiting for transactions to be completed.

The above is the specific explanation of the editor of the currency circle on the two questions: Do stablecoins rise and fall? And are stablecoin prices stable? Stablecoins are usually a cryptocurrency that is collateralized by the value of the underlying asset. This underlying asset may vary from token to token, which we will explore in depth later in this article. Many stablecoins are pegged to certain fiat currencies (such as the US dollar or the euro) that can be traded on an exchange at a 1:1 ratio. Other stablecoins are pegged to other types of assets, such as precious metals such as gold, or even to other cryptocurrencies. Stablecoins are issued in the form of digital currencies, and their main purpose is to imitate traditional currencies.