According to IntoTheBlock, there are several types of stablecoins each with distinct risks that traders need to be aware of. Fiat-collateralized stablecoins, such as USDC and USDT, are backed by reserves but pose regulatory risks. Crypto-collateralized stablecoins, like DAI, are backed by other cryptocurrencies and carry risks related to volatility and liquidation. Algorithmic stablecoins, which rely on supply adjustments to maintain their peg, can experience stability issues under market stress. Understanding these risks is crucial for traders who utilize stablecoins for hedging or liquidity purposes. Source: IntoTheBlock.