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What is a stablecoin? How it differs from US dollars and bank deposits + USDT vs USDC for beginners (2026)

A stablecoin is a type of crypto asset whose price is designed to stay relatively stable. The most common ones, USDT and USDC, are pegged to the US dollar and usually trade around 1 coin ≈ 1 dollar. But a stablecoin is not dollar cash and not a bank deposit. This article explains how stablecoins differ from US dollars and bank deposits, and which one a beginner should pick first: USDT or USDC.