What Are Stablecoins, and Should You Invest in Them?

The cryptocurrency phenomenon has taken the world by storm over the past year, with several cryptocurrencies -- including Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and Cardano (CRYPTO: ADA) -- soaring in value in a relatively short period of time.

The biggest reason why many investors have shied away from cryptocurrency, however, is its extreme volatility. All cryptocurrencies have experienced massive price swings over the past several months, which has made many people wary of this new type of investment.

One alternative investment that is similar to cryptocurrency but offers more stability is the stablecoin. But what are stablecoins, and are they a smart investment? Here's what you need to know.

Continue reading

Source Fool.com