Stablecoins are a type of cryptocurrency designed to assign a stable value to a particular digital asset. Stablecoins are designed to address the price volatility that often occurs with cryptocurrencies like Bitcoin or Ethereum.

The fundamental point of these coins is to maintain a pegged value, despite the dynamic volatility that crypto markets face. Stablecoins aim to have a coin with a stable price. Many investors/traders buy these coins not for profit, but as a place to store their money in crypto infrastructure and use it when they want to buy and sell other assets.