BYDFi
Trade wherever you are!
Buy Crypto
New
Markets
Trade
Derivatives
common-fire-img
BOT
Events

What is the meaning of pegged in the context of cryptocurrency?

Bass LacroixOct 01, 2024 · 10 months ago1 answers

In the context of cryptocurrency, what does the term 'pegged' mean?

1 answers

  • Shruti BajpaiAug 10, 2022 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, defines 'pegged' in the context of cryptocurrency as the act of fixing the value of a digital asset to the value of a fiat currency or another cryptocurrency. This is often done to create a stablecoin, which is a type of cryptocurrency that aims to maintain a stable value. The pegging mechanism can involve collateralization, algorithmic stabilization, or a combination of both. By pegging a cryptocurrency, users can benefit from the stability of the pegged asset while still enjoying the advantages of blockchain technology and decentralized transactions.

Top Picks