this post was submitted on 12 Aug 2025
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Explain Like I'm Five
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Stablecoins are not better, they’re different.
If you’re on a trading platform, you have a cash account. You use the cash account to buy stocks, options, etc. When you sell these, they credit your cash account. You only actually get the money if you cash out your account, which most people who are actively trading don’t because it takes time to transfer out.
Stablecoins are like cash accounts for crypto. You can use them to buy and sell coins like Bitcoin or Ethereum. Then you can eventually cash them out, which takes more time.