Glossary, tools, and useful links for buying stablecoins in the UK.
StablecoinA cryptocurrency designed to maintain a stable value by pegging to a reserve asset like the US Dollar.USDTTether — the largest stablecoin by market cap, pegged to the US Dollar.USDCUSD Coin — a fully-backed stablecoin issued by Circle, known for regulatory compliance.DAIA decentralised stablecoin maintained by MakerDAO, backed by crypto collateral.DepeggingWhen a stablecoin loses its peg and trades away from its target value (e.g., drops below $1).Fiat-backedA stablecoin backed by reserves of traditional currency (e.g., US Dollars held in a bank).AlgorithmicA stablecoin that uses algorithms and incentives to maintain its peg, without direct backing.KYCKnow Your Customer — identity verification required by regulated exchanges.LiquidityHow easily an asset can be bought or sold without affecting its price.Gas feesTransaction fees paid to blockchain network validators for processing transactions.Cold walletAn offline storage method for cryptocurrencies, providing maximum security.Hot walletAn online wallet connected to the internet, convenient but less secure than cold storage.