# Understanding stablecoins

Stablecoins are a type of digital money designed to hold a steady value. Most are tied to the US dollar, meaning 1 stablecoin is intended to be worth 1 USD.
You can think of stablecoins as digital dollars you can receive, hold, and send over the internet, even without a traditional bank account.
Unlike cryptocurrencies such as Bitcoin or Ethereum, whose prices can change dramatically, stablecoins are built for everyday uses like getting paid, holding money, and sending it around the world.
## How do stablecoins work?
Stablecoins run on blockchains, digital networks that securely record transactions and let people send money directly between wallets.
Many popular stablecoins, including USDC, are backed by reserves of cash and other highly liquid assets, such as short-term US government securities. These reserves help keep their value close to 1 USD.
When someone sends you stablecoins, they move directly to your digital wallet, often arriving in seconds or minutes, even when the sender is in another country.
## Why use stablecoins?
Stablecoins combine the familiarity of dollars with the speed and convenience of the internet.
* **Dollar access:** Hold and manage money in US dollars, wherever you are in the world.
* **Fast, global transfers:** Send and receive money across borders, 24/7, unconstrained by banking hours.
* **More control:** Manage your money directly through a digital wallet.
* **Lower costs:** Sending stablecoins can cost less than bank transfers, including wires, depending on the network and service you use.
## What can I do with stablecoins?
Stablecoins can be used for many of the same things you already do with money, whether that's getting paid by an employer, holding a balance in dollars, or sending money to friends and family.
You can also exchange them for your local currency or spend them with businesses and apps that accept stablecoins.
Exactly what's available depends on where you live and which services you use.
## Are stablecoins safe?
Widely used stablecoins are backed by reserves of cash and other high-quality assets, helping them maintain a steady value close to 1 USD over time. While no financial asset is entirely risk-free, these reserves help make stablecoins a more predictable way to hold and move money.
## How do stablecoins work with Link?
Link makes it easy to receive and manage stablecoins alongside your everyday online payments.
Link allows you to hold stablecoins, giving you a convenient way to manage money. Your stablecoin balance is recorded on a blockchain, a secure digital ledger that keeps track of transactions without relying on a traditional bank.
Access your Link account anytime at [link.com](https://app.link.com/). For more information about receiving and withdrawing funds, view the [Link balance FAQ](https://support.link.com/questions/link-balance-faq).