What are stablecoins and how can they reduce crypto currency volatility

Stablecoin is a cryptocurrency that has been designed to reduce or rather minimizes the price volatility. These cryptocurrencies are used as units of account or as stores of value or in other instances where cryptocurrencies may be undesirable. There are different designs used by stablecoin authors to achieve price stability. Its value can be pegged on fiat currencies or by exchanging traded commodities such as gold, silver, Bitcoin and industrial metals.