Fiat-Pegged Cryptocurrency
Fiat-pegged cryptocurrencies offer a solution that combines the traditional financial system with the world of cryptocurrencies and especially for investors who want to protect themselves from exchange rate fluctuations.
Fiat-Pegged Cryptocurrency is cryptocurrency that is usually pegged or pegged to a specific fiat currency (for example, the US dollar or Euro). These types of cryptocurrencies are usually backed or managed by a central authority to ensure price stability or peg to a certain value. For this reason, a fiat-pegged cryptocurrency is often popular as an option for users who want to hedge against exchange rate fluctuations or who want to combine the world of cryptocurrency with the traditional financial system. For example, 1 USDT (Tether) is usually pegged to 1 US dollar and therefore its price is equalized to the dollar.
