Stablecoins are easy with Cryptowise

Stablecoins maintain their stability in two main ways:

1. Backed by Reserves: Most stablecoins are backed by real assets held in reserve, such as US dollars or equivalent financial instruments. For every stablecoin in circulation, there’s supposed to be an equivalent amount of these assets held securely. This ensures investors can redeem their stablecoins for the pegged amount if needed.

2. Algorithmic Control: Some stablecoins use algorithms and smart contracts to control the supply of coins. If the price drops below the peg, the system reduces supply; if it rises too high, more coins are minted. This method is more complex and less common but aims to maintain the peg without needing reserves.

Popular Stablecoins in 2025

1. Tether (USDT) : Issued by Tether Limited, it is the largest  stablecoin with a market capitalization of approximately $172 billion as  of September 2025. Tether is widely used across crypto markets despite  regulatory scrutiny regarding reserve transparency.

2. USD Coin (USDC) : Managed by Centre, founded by Circle and Coinbase,  USDC has a market cap of about $32.4 billion in 2025. It is respected  for transparency, frequent audits, and strong regulatory compliance.

3. USDe :  An  algorithmic stablecoin created by Ethena Labs, which has rapidly grown  to a market capitalization of over $12.1 billion, making it one of the  fastest-growing stablecoins in recent years.

4. Dai (DAI) : A decentralized stablecoin governed by the MakerDAO  community, currently with a market cap of around $5.36 billion. Dai is  fully collateralized by a basket of cryptocurrencies.

5. PayPal USD (PYUSD) : Backed by PayPal, an online payments giant,  PYUSD's market cap is roughly $1.38 billion, linking traditional finance  smoothly with crypto payments.

1. Digital and Programmable: Stablecoins exist on blockchain networks, which means they can be used in digital transactions instantly and programmed via smart contracts for automated payments or financial services, something physical or digital dollars in banks cannot do as seamlessly.

2. Faster and Cheaper Cross-Border Payments: Stablecoins allow nearly instantaneous, low-cost transfers across borders without the need for banks or intermediaries, which usually charge fees and cause delays in fiat transfers

3. 24/7 Access Without Banks: Unlike dollars in bank accounts that operate within banking hours and require intermediaries, stablecoins can be moved or accessed anytime worldwide via a digital wallet with internet access.

4. DeFi and Crypto Ecosystem Integration: Stablecoins are essential for interacting in decentralized finance (DeFi) platforms for lending, borrowing, and earning interest, while fiat dollars cannot directly participate in these blockchain-based activities

5. Financial Inclusion: Stablecoins enable unbanked individuals and populations in unstable economies to access digital dollars without needing traditional bank accounts or credit infrastructure. 

6. Maintains Dollar Peg with Crypto Benefits: They combine the stability of the US dollar with the benefits of cryptocurrency—speed, transparency, and programmability—which makes them more efficient for certain transactions and use cases than fiat dollars.

Summary

While US dollars are the standard currency, stablecoins represent a digital form that can be transacted faster, more cheaply, and with more flexibility worldwide. They are especially useful for digital finance, global commerce, and blockchain applications, offering advantages that traditional dollars stored in banks cannot match directly. Thus, stablecoins serve as a practical bridge between fiat currency stability and blockchain technology's efficiency.

This makes stablecoins appealing for those looking to transact globally, interact with DeFi, or hold dollar-pegged assets in a fully digital form.

Stablecoins can be bought easily on various cryptocurrency exchanges and platforms that support crypto purchases with familiar payment methods like credit/debit cards, bank transfers, or digital wallets. Popular exchanges to buy stablecoins include Binance, Kraken, Coinbase, CEX.IO, and apps like Ka.app. 

Platforms like PayPal also offer specific stablecoins like PYUSD for purchase directly through their apps.

Where to buy stablecoins

1. Centralized exchanges: Major exchanges such as Binance, Kraken, Coinbase, and CEX.IO support buying stablecoins like USDC, USDT, and others. These allow purchases with credit cards, bank transfers, or wire payments after user verification.

2. Mobile wallet apps: Apps like Ka.app enable instant stablecoin purchases using credit/debit cards or bank transfers, making it very user-friendly especially in Europe 

3. Payment platforms: PayPal allows buying the PYUSD stablecoin 1:1 pegged to USD, with additional benefits like rewards programs for holding it.

Popular stablecoins to consider

1. USDC (USD Coin) — widely used and supported by most exchanges and wallets.

2. USDT (Tether) — one of the largest stablecoins by market cap.

3. USDe from Ethena Labs. Fast growing stablecoin. 

4. PYUSD — PayPal's own stablecoin available on the PayPal platform.

Summary

To buy stablecoins, one should choose a trusted platform based on location and preferred payment method. Centralized exchanges like Binance, Kraken, and Coinbase offer broad options, while user-friendly apps like Ka.app simplify the process for quick card or bank purchases. PayPal also supports buying PYUSD stablecoin conveniently on their platform.