Stablecoins Explained: What They Are, How They Work, and Which Ones to Avoid

When you hear stablecoins, cryptocurrencies designed to hold a steady value, usually tied to a fiat currency like the US dollar. Also known as digital dollars, they’re supposed to be the safe harbor in crypto’s wild price swings. But here’s the truth: not every coin labeled "stable" actually is. Some, like Deutsche Mark (DDM), are complete fabrications—zero supply, fake volume, no team. They look like stablecoins, but they’re exit scams in disguise.

Real stablecoins like USDT, Tether, the most widely used stablecoin, pegged 1:1 to the U.S. dollar and backed by reserves and USDC, USD Coin, issued by Circle and Coinbase, with regular audits and transparent reserves actually hold their value because they’re backed by real money. They’re used every day—by traders avoiding volatility, by people in countries with failing currencies, even by businesses paying freelancers across borders. But if a stablecoin doesn’t show proof of reserves, doesn’t have a clear issuer, or is only traded on sketchy exchanges, it’s not stable. It’s a gamble.

That’s why so many posts here warn you about fake tokens pretending to be stablecoins. Projects like CovidToken or FERMA SOSEDI aren’t just useless—they’re traps. They use the word "stable" to trick you into thinking they’re safe. But stablecoins aren’t about hype. They’re about trust, transparency, and backing. If you can’t verify where the money is, you don’t own a stablecoin. You own a liability.

What you’ll find below isn’t a list of top stablecoins to buy. It’s a list of what to avoid, what’s real, and how to spot the difference. From dead coins with zero trading volume to regulatory crackdowns that expose fake reserves, these posts cut through the noise. You’ll learn why Angola banned mining, why Iran turned to crypto, and how FATF blacklists affect real people trying to use digital money. Because in crypto, stability isn’t just a feature—it’s the only thing keeping you from losing everything.