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Stablecoin is a cryptocurrency that is immune to significant price changes. It is a hybrid of a fiat money and a regular cryptocurrency. Stablecoins can be fiat-collateralized, crypto-collateralized, or non-collateralized to preserve value stability. Fiat-collateralized stablecoins are backed by fiat money or assets like as gold and silver. Tether (USDT) is an example of a fiat-collateralized stablecoin, as it is tethered to the US Dollar as its reserve asset. non-collateralized stablecoins are priced using an algorithm. Stablecoins that are crypto-collateralized are connected to other cryptocurrencies and are frequently "over-collateralized" to prevent price fluctuations.