All cryptocurrencies are are based on similar blockchain technology, which enables secure ownership of digital assets. Cryptocurrencies circulate on decentralized networks that use cryptography to guard against counterfeiting and fraud.

The value of most cryptocurrencies is largely determined by what the market will bear, and many people who buy them are doing so in hopes that they will increase in value. Stablecoins, however, are designed not to change much in value. If you spend a stablecoin that's linked to the value of a dollar, you're less likely to look at cryptocurrency prices the next week and see that you're missing out on a big gain (or huge loss).