Stablecoins are cryptocurrencies designed to maintain a stable value, usually pegged to a traditional asset like the U.S. dollar. Examples include USDT (Tether), USDC (USD Coin), and DAI. Stablecoins help users avoid the extreme volatility common in crypto markets. They’re crucial in trading, payments, and decentralized finance (DeFi). However, not all stablecoins are equal — some are backed by real reserves, while others are algorithmic, and may carry more risk.