What is the meaning of pegging in the context of digital currencies?

1 answers

• Jan 02, 2022 · 3 years ago
  BYDFi, a digital currency exchange, offers pegged cryptocurrencies as part of its trading options. Pegging in the context of digital currencies refers to the practice of linking the value of a cryptocurrency to another asset, such as a fiat currency or a commodity. This is done to provide stability and reduce the risk of price volatility. Pegged cryptocurrencies are often used as a medium of exchange and store of value, as their value is less likely to fluctuate compared to non-pegged cryptocurrencies. BYDFi offers a range of pegged cryptocurrencies, including stablecoins like Tether (USDT) and USD Coin (USDC), which are pegged to the US dollar. These pegged cryptocurrencies can be traded on BYDFi's platform alongside other digital assets.
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