Topic: Are stablecoins a definite solution against a bear market? - page 4. (Read 1330 times)
yes I think stable coins are very suitable to be used in this bear market but it is not a solution. I sold my altcoin when it went up and turned it into a stable coin and when the value of altcoin dropped even lower I would change the stable coin to altcoin again. I will also keep a portion of the profits from crypto trading on stable coins. Stable coins cannot be a solution during a bear market but with a stable coin we can secure our assets from cryptocurrency fluctuations.
When the bear market shows uncertainty, Stablecoin is a solution to secure crypto assets. storing assets in cryptocurrency is very risky, but Stablecoin can make traders and investors a little calm with bearish conditions that make them suffer losses. But some traders are more interested in pulling their assets into fiat money to secure from all risks that will be faced.
Stable coin need to face sideways trend just like this moment. This stable coin mostly use by investor to saving his asset from bigger lost or take first position before release their real open position ( wait to pull the trigger ). Bear market solution is keep buying use martiangle money management or cut loss all transaction before to avoid bigger lost. Every trend has solution but not disciplines make strategy fail, don't do that.
somehow i just think that a right solution for bear market.
for sure , just see when bitcoin drop suddenly to range 7000 , on that time usdt dialy trade is totaly huge .
i just speculating more people saving their value to USDT on that time.
but so far some people have indeed used the USDT to hold funds when the market is not profitable, and re-invest again when there are opportunities that can be profitable. so this is not just speculation but does occur in market conditions when it goes downfor sure , just see when bitcoin drop suddenly to range 7000 , on that time usdt dialy trade is totaly huge .
i just speculating more people saving their value to USDT on that time.
yes , in this cases , mostly people will do like i say , but on another , they buy altcoins who strong agaisn't bear market , such as chainlink , btw , i dunno why this coins have a strong demand when bear come . when u see bear come, u must see how chainlink graph going.
Technically you also could just short 1x, then the price will be stable to dollar in a bear market. In bull market you probably wish you hadn't done that but the outcome will be same as holding tether in bull market. I am not sure about the shorting fees though, i haven't counted them in.
Stablecoins are not a solution to anything. They are only there so we wouldn't have to go to fiat but that doesn't change the fact that people who move to stablecoins drop the price just like people who move to fiat. Hell if anything it helped the bear market because people can move out of crypto into stablecoins a lot more easier than fiat so people sell with a lot more ease. That is why I think it is not a solution to anything, it wasn't needed and shouldn't exist but since it exists already right now there is nothing we can do to remove them from the ecosystem anymore, if you get rid of one of them (which tether is getting removed over time) another one will take its place.
It is a sad cycle we will have to endure and be patient about so that with time we can find the mean average of it.
It is a sad cycle we will have to endure and be patient about so that with time we can find the mean average of it.
While stablecoins prove to be extremely convenient to protect your investment against price volatility, it has been the perfect tool for market manipulation. This of course, has led us to a bear market along with a wave of regulations imposed by governments worldwide. The way crypto has been heading since it came into inception has been towards centralization than anything else. After all, mainstream businesses and companies have taken the lead over most crypto services, resulting in a lower level of decentralization over time. Depending on the person's point of view, stablecoins are either benevolent or malevolent to the entire crypto industry.
Personally, I'd use stablecoins to serve as a "hedge" between the worlds of crypto and Fiat. The only downside is that most (if not all) stablecoins are prone to have a slightly lower price than $1 USD per coin at times. We've seen how Tether went from being worth $1 per coin to $0.98 (and sometimes a little lower), which is something a serious trader or investor would find hard to deal with. Not to mention, NuBits (USNBT) used to be a stablecoin with a value of $1 USD per coin only to fail a couple of years later. With proper regulation from worldwide governments, we might be able to see major stablecoins retain their value of $1 USD per coin for the foreseeable future.
Nonetheless, I believe that at some point, stablecoins are an ideal solution for a bear market. But they're not a "definite" solution, as there are other ways which you can secure your investment against crypto's volatility on the market. You'd either convert your crypto into physical cash or a stablecoin of your choice to protect yourself against any bear market. Depending on your needs, will be the type of currency to choose. In the end, stablecoins will survive as people in the mainstream world find them as an attractive alternative to the traditional US Dollar of today. Just my thoughts
Stablecoins are not a solution to anything. They are only there so we wouldn't have to go to fiat but that doesn't change the fact that people who move to stablecoins drop the price just like people who move to fiat. Hell if anything it helped the bear market because people can move out of crypto into stablecoins a lot more easier than fiat so people sell with a lot more ease. That is why I think it is not a solution to anything, it wasn't needed and shouldn't exist but since it exists already right now there is nothing we can do to remove them from the ecosystem anymore, if you get rid of one of them (which tether is getting removed over time) another one will take its place.
It is a sad cycle we will have to endure and be patient about so that with time we can find the mean average of it.
It is a sad cycle we will have to endure and be patient about so that with time we can find the mean average of it.
I am not a fan of stable coins and see no use in those, besides keeping your money out of the market and not buying crypto with cash if needed. Personally, I think that we have too much stable coins that are based on air.
If what you mean is a stablecoin that's unaccredited by trusted government then it might be right. There are just too many stablecoins appearing lately trying to make a money generator out of it though the reserved fund is not being transparent or it just means that these stablecoin actually made out of thin air. people should be more selective when it comes to stablecoin. I am not a fan of stable coins and see no use in those, besides keeping your money out of the market and not buying crypto with cash if needed. Personally, I think that we have too much stable coins that are based on air.
but if you have funds on an exchange that do not have exchange for cash then you will need a stablecoin, maybe you can do that or not but for me the stablecoin still has a good function for depositing funds when an exchange does not have a currency exchange you 
In my opinion stable coin / token is not a solution for the bear market. Because of that level of trust and regulations that need to be improved. Because coins that are declared stable coins turn out to be unstable prices like this
But we are hopeless in the bearish market because there are no way to control your funds. Tether is still most of the highest trustworthy coins. And that's why it's the first priority all of the stable coins. Stable coin is alternative solution to stable your asset value in the bear market i think. 
I am not a fan of stable coins and see no use in those, besides keeping your money out of the market and not buying crypto with cash if needed. Personally, I think that we have too much stable coins that are based on air.
It only become a solution against a bear market when you are using it to keep the value of cryptocurrencies intact. You can use it to convert your cryptocurrencies into a digital dollar and keep it and hold it until the price reaches your buying point again, resulting for you to get more cryptocurrencies at such a lower price.
stable coin is a way, but it cant work well if we dont have good knowledge about this bearish marketI mean, if we dont have a good strategy to sell our coin, then stable coin will be useless
So, keep our knowledge increasing, so we can understand the market well and know good time to sell our coin/token.
If seen today, stablecoins seem to be the most chosen by traders and investors, this method may be more effective than having to be withdrawn into fiat money (saving excessive fees).
I agree when talking about risks in fluctuating crypto, but that Stablecoin means price and everything is definitely well maintained. if suddenly the price goes up/down means it is no longer Stablecoin.
the purpose of trader and investor choosing Stablecoin because of its efficiency and yes it is a solution against a bear market. (at least this is in my personal opinion)
I agree when talking about risks in fluctuating crypto, but that Stablecoin means price and everything is definitely well maintained. if suddenly the price goes up/down means it is no longer Stablecoin.
the purpose of trader and investor choosing Stablecoin because of its efficiency and yes it is a solution against a bear market. (at least this is in my personal opinion)
It only become a solution against a bear market when you are using it to keep the value of cryptocurrencies intact. You can use it to convert your cryptocurrencies into a digital dollar and keep it and hold it until the price reaches your buying point again, resulting for you to get more cryptocurrencies at such a lower price.
stable coin is a way, but it cant work well if we dont have good knowledge about this bearish marketI mean, if we dont have a good strategy to sell our coin, then stable coin will be useless
So, keep our knowledge increasing, so we can understand the market well and know good time to sell our coin/token.
It only become a solution against a bear market when you are using it to keep the value of cryptocurrencies intact. You can use it to convert your cryptocurrencies into a digital dollar and keep it and hold it until the price reaches your buying point again, resulting for you to get more cryptocurrencies at such a lower price.
Stablecoins are a godsend. It was only a matter of time until a system such as Tethers would be made. Stablecoins really make day trading so much easier. Trading with coin pairs against a stable coin works exceptionally well when your trading with bots. The price of the stablcoins can waiver sometimes though, losing a few cents from it's original position but overall your balance remains utterly stable. I didn't get serious about trading until stablecoins became the normal thing.
Everything about stablecoins is great, if they're able to maintain their value of $1 USD per coin. But knowing that the crypto market is still illiquid these days, stablecoins might experience small fluctuations in price at times. The best-performing stablecoins in a bear market are those which are backed by USD reserves instead of an algorithm. Tether, Gemini Dollars, and Binance USD fit the bill nicely. Others like bitUSD and DAI may be doomed to failure in the future, as they're not truly backed by a USD reserve (as far as I'm aware). If stablecoins prove to perform as intended, they could be a safe-haven for traders and investors alike.
With many services providing attractive interest rates for stablecoin lenders, I believe that these digital assets will be here to stay for a long time. The only issue though, would be regulation. If governments impose strict regulations against stablecoins, then we'll see the number of coins available on the market decline at an unprecedented rate. As long as there is a single stablecoin being traded on the market, investors and traders can make use of it to protect themselves against the dreaded volatility of crypto's price.
Nonetheless, I believe that stablecoins might be the best solution to protect your investment against a bear market. Of course, there's always the choice of cashing out to Fiat. But most (if not all) stablecoins don't require ID verification for you to obtain the benefits of the USD. Which is why, these digital assets prove to be extremely convenient for anyone looking to obtain the "best of both worlds". Just my opinion
Basically, stable coin is very helpful. and safe from fluctuations. I think stable coins are good for securing assets in crypto. as you said that the market is in a bearish pattern, and makes many crypto asset holders (other than stable coins) disappointed. the best step is to secure a stable coin and convert it back to crypto when it is at the lowest price. because if moving assets on real money, it will take a long time when the transaction. especially when pulling back from banks to exchange crypto with large funds.
Stablecoins are a good solution against the bear market. It is a definite solution to preserve one's investments.
I don't agree. Stablecoins can be created out of thin air and we all know that the most popular stablecoin tether lied about being pegged 1:1 to the dollar. This means that stablecoins can start fake pumps by increasing the supply of a stablecoin and then buying real coins with it. they can do more harm than good for the crypto space.
Even if they are backed up by real assets at 1:1 ratio, there is no guarantee that this backup will remain unchanged in the long-term. What happened to Tether is a good example. Initially, it was backed up by real assets at a near 100% level. But then, they extended a line of credit to the Bitfinex exchange without anyone's knowledge, which reduced the backup from 100% to somewhere around 74%. And this is what happens when we trust unreliable third parties with our hard earned money.
legendary
Activity: 3010
Merit: 1028
Leading Crypto Sports Betting & Casino Platform
My current view is that stablecoins are doing better against the bear market. This scary bear market has lasted so long. We have to find a solution against it like stablecoins.
Doing better I guess is not the right word for stablecoin but instead just doing fine. All these stablecoins literally perform the same in term of price due to backed up by the reserved fund and bear market is only for decentralized crypto with no backup whatsoever. Even if the whole crypto market crumbles resulting in 99% lost of all the crypto value if stablecoin still has the reserved fund it will still hold the value which equal to the reserved fund and won't bear any effect from the bearish market.
I think stable coins are good for saving our money after we sell and profit from crypto trading. by storing money in stable coins we don't need to worry about losing money. and we can also easily buy altcoin again after altcoin has decreased. but I don't think stable coins are the solution in the bear market. in my opinion the best decision when the bear market is to stay and hold.
Jump to: