Stablecoins make an effort to link their market value to an outside standard, often a fiat currency. They function better as a means of exchange than more volatile cryptocurrencies. Stablecoins can be linked to the price of gold or another commodity, such as the U.S. dollar, or they can utilise an algorithm to regulate production. Additionally, they keep reserve assets on hand through the use of algorithmic supply-controlling methods or as collateral.