Learning path
Understanding Stablecoins
What stablecoins actually are, what 'backed' means, and how to evaluate the differences between USDC, USDT, and other major options. For people who hold or use stablecoins.
Who this is for
You hold stablecoins, transact in them, or are considering allocating any capital to them. You want to understand what "backed by the dollar" actually means — and what can go wrong.
This path takes about 30 minutes. By the end you'll understand the three structural types of stablecoins, be able to compare the major options on the dimensions that matter, and know what red flags to watch for.
The honest summary
For most people, USDC is the right choice for any holding you can't afford to lose. It has the clearest regulatory structure, monthly attestations, and a 6+ year track record. USDT is more widely available but has a more opaque reserve structure. PYUSD is newer but from PayPal, a regulated issuer.
No stablecoin is FDIC-insured. The dollar in your bank account has federal insurance up to $250,000; a stablecoin in your wallet does not. The difference matters as balances grow.
When this path overlaps with the others
If you came to this path from the [First $100 path](/paths/first-100/), the article order is similar but the depth is greater. The [Self-custody path](/paths/self-custody/) covers how to actually hold stablecoins once you've decided which one — including the cold/hot split.
What's missing on purpose
This path doesn't cover:
- Algorithmic stablecoins (FRAX, UST, others). The article on stablecoins explains why these are not recommended.
- Yield-bearing stablecoin products (lending, staking). These add counterparty risk on top of stablecoin risk and merit separate treatment.
- Crypto-collateralized stablecoins (DAI, sUSD). Useful in some DeFi contexts but with a different risk profile than fiat-backed stablecoins.
These are not ignored — they're out of scope for the path. If you need them, the [Stablecoins Explained](/guides/stablecoins-explained/) article will point you to the relevant sections.
The path
-
The fundamentals
Stablecoins Explained: What 'Backed' Really Means
The three types of stablecoins, the risks of each, and what 'backed' actually means in practice.
-
The side-by-side
Stablecoin Comparison: What Backing Actually Means
USDC vs USDT vs PYUSD on the dimensions that actually matter: reserve transparency, regulatory status, track record.
-
The bigger picture
What Is Tokenization? Real-World Assets, Digital Claims, and Real Risks
Stablecoins are the most-used tokenization product. Understand the structure and the risks.