- Cryptocurrencies are known for their price volatility. For instance, Bitcoin‘s price has fluctuated dramatically, from less than $1 in 2010 to over $60,000 in 2021. These wild swings can make cryptocurrencies appealing for speculation but risky as an investment.
- Stablecoins (such as Tether and USD Coin) are designed to maintain a stable value by being pegged to a traditional asset, like the US dollar, to reduce volatility.
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