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What exactly is a stablecoin? What is the relationship with other cryptocurrencies such as Bitcoin?
What exactly is a stablecoin? What is the relationship with other cryptocurrencies such as Bitcoin?
Jul 11, 2025 pm 06:39 PM
This article sorts out the world's mainstream cryptocurrency trading platforms and analyzes the role of stablecoins. 1. Binance is known for its large trading volume and full functions; 2. Ouyi provides Web3 ecosystem and financial products; 3. Huobi is suitable for steady investors; 4. Gate.io has many coins and is suitable for potential projects; 5. KuCoin supports diversified strategies; 6. Bybit focuses on derivative trading.
This article will sort out the world's top cryptocurrency trading platforms and explain in an easy-to-understand manner what is stablecoins and their role in the crypto world. Whether you are a newbie or a senior user who wants to find a better trading platform, you can find clear guidance and valuable information here.
Recommended by mainstream cryptocurrency exchanges
Choosing a safe and reliable exchange is the first step into the crypto world. The following are several top exchanges that are ranked comprehensively based on user scale, transaction depth, security and product richness.
1. Binance
Direct to the official website:
As the world's largest cryptocurrency exchange, Binance is known for its unparalleled liquidity and massive currency options. Its platform has extremely rich functions, covering spot trading, contracts, financial management, NFT market, etc., and can meet almost all types of user needs. Although the features are complex, its user experience and security are highly recognized in the industry and are the preferred platform for most investors.
2. Ouyi (OKX)
Direct to the official website:
Ouyi is a highly comprehensive exchange known for its strong Web3 ecosystem (such as Web3 accounts) and innovative financial products. The platform has a deep technical accumulation and a huge user base in the field of contract trading. For users who want to conduct traditional transactions and explore the decentralized world, Ouyi provides a seamless entrance.
3. Huobi (HTX, original Huobi)
Direct to the official website:
Huobi is one of the oldest exchanges and has a huge Asian user base. Its platform operation interface is more friendly to novice users, and the security risk control system has also experienced years of market tests. Huobi has performed well in the trading depth of mainstream currencies and is suitable for investors who prefer steady operations.
4. Gate.io
Direct to the official website:
Gate.io is known as the "treasure of altcoins", and is known for its fast coins and large amounts of coins. If you are keen on discovering early, potential small-cap projects, Gate.io is undoubtedly one of the best choices. At the same time, it also provides a variety of services such as financial management and contracts, but users need to pay attention to the high risk of emerging currencies when using them.
5. KuCoin
KuCoin is also popular for its rich currency selection and support for new projects, and is known as the "people's exchange." Its trading robots and various activities are highly attractive to ordinary users, and the overall experience of the platform is smooth, suitable for users who want to try diversified investment strategies.
6. Bybit
Bybit started out as derivatives (contracts) trading early and established a strong brand reputation in this field. Its trading engine has excellent performance, fast matching speed and good depth, and is highly favored by professional traders. In recent years, Bybit has also vigorously developed spot trading and financial products, gradually becoming a comprehensive platform with comprehensive functions.
Getting started with stablecoins: What exactly is it?
After understanding the exchange, you will frequently encounter a concept: stablecoins. Many people don’t understand, since there is Bitcoin, why do you still need stablecoins? It is actually one of the most important infrastructures in the crypto world.
The core concept of stablecoins
Simply put, a stablecoin is a cryptocurrency with stable value. Its "stability" comes from its price being "pegged" to some stable asset, and the most common one is anchoring 1:1 to the US dollar. For example, the most mainstream stablecoins USDT (Tether) or USDC (USD Coin), whose issuer promises that every issuer has a real asset (such as cash or short-term Treasury bonds) as reserves. Therefore, the price of 1 USDT will always be around USD1.
You can understand it as the "dollar" in the crypto world. When you hold 100 USDT, it means you have $100 of purchasing power, but these "dollars" exist on the blockchain and can be transferred quickly and globally like Bitcoin.
The relationship between stablecoins and cryptocurrencies such as Bitcoin
Stablecoins and Bitcoin (or other mainstream cryptocurrencies) are complementary rather than competitive relationships, and they play a crucial role in the crypto ecosystem:
1. Harbor of Hazard
The prices of cryptocurrencies such as Bitcoin and Ethereum fluctuate greatly, and may rise or fall by more than 10% within a day. When the market falls sharply, if investors do not want to exchange their assets back to fiat currency (the process may be slow and the handling fee is high), they can quickly sell their Bitcoins in their hands and exchange them for stablecoins such as USDT. This not only locks in profits or avoids further losses, but also keeps assets in the crypto market, making it convenient for you to buy at the bottom or make your next investment at any time.
2. Trading medium
Stablecoins are the most core trading pair in the cryptocurrency market. In the exchange, you will see that most currencies have trading pairs with USDT, such as BTC/USDT, ETH/USDT. Like the dollar in the real world, it has become a "rule" for measuring the value of other cryptocurrencies and an "intermediate currency" for buying and selling, greatly improving transaction efficiency and liquidity.
3. Store of value and payment tools
Due to its stable value, stablecoins are also often used for daily payments and cross-border transfers. Compared with traditional banks, the transfer speed of using stablecoins is faster (accessible within a few minutes), lower cost, and is not restricted by holidays, providing great convenience for global value transfer.
To sum up, cryptocurrencies such as Bitcoin are more like high-risk "digital gold" or speculative assets due to their volatility and scarcity. Stablecoins play the role of the "universal currency" in the crypto world, are the bridge connecting the crypto world with the real world financial system, and are also the cornerstone for the smooth operation of all transactions and applications.
The above is the detailed content of What exactly is a stablecoin? What is the relationship with other cryptocurrencies such as Bitcoin?. For more information, please follow other related articles on the PHP Chinese website!
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How to get stablecoin USDT for free_Xiaobai stablecoin USDT obtain guide
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USDT is not a scam, but there are risks. 1. Tether provides liquidity in the crypto market by issuing USDT, a stablecoin anchored by the US dollar; 2. The company's background is related to Bitfinex, and has been fined for audit issues but has increased transparency; 3. The reserve assets are mainly US Treasury bonds rather than pure cash, and there are certain financial risks; 4. Face risks such as insufficient audit frequency, centralized control and compliance restrictions; 5. The USDT market is highly accepted, but trust needs to be based on continuous disclosure and compliance operations. Overall, USDT is trustworthy but does not equal zero risk, and users should be cautious.
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Is USDC safe? What is the difference between USDC and USDT
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