What is a peg in cryptocurrency?

In the context of cryptocurrency, a peg refers to the specific price that a token is aiming to stay at. The majority-case use of a peg is for stablecoins; stablecoins are cryptocurrency assets that maintain their value over a long period of time. Notable examples include USDT, DAI and FRAX, all of which are pegged to $1.

What is a pegged crypto?

Pegged crypto forms an important part of the crypto market. There are a lot of pegged coins but not all of them are equally reliable and thus, can be used to protect your crypto assets from excessive volatility. Therefore, always do your own research before buying any stablecoin.

What is @Cryptopedia?

Cryptopedia was founded in 2018 with the mission of providing fair and transparent crypto education to the masses. We introduced over 100,000 new users into the cryptocurrency markets worldwide. We have helped over 100 thousand members become more finanically educated. We make it easy to get started.

What is the rate of pegging a crypto asset to Fiat?

When pegging a crypto asset to fiat, such as the Us dollar, the rate is 1:1. So, if the issuer has about one million tokens of a coin pegged to USD, he has an equivalent of one million USD. Users could buy, sell and trade the tokens like other digital assets such as Bitcoin or Ethereum.