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!

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