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Topic: Are stablecoins a definite solution against a bear market? - page 6. (Read 1330 times)

hero member
Activity: 1638
Merit: 518
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.
legendary
Activity: 1750
Merit: 1115
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In a dreaded bear market that's lasts a long time, do you think that stablecoins are the definite solution for preserving one's investments?

So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.

What are your thoughts? Huh
Definitely! When you say stable coins, you should also consider the volume and market size of that coin. A coin sitting at $4 for the past 6 months wouldn't be considered as a stable coin. You'd not be on a safer side with a coin that could have been fluctuating between 4$-$20. So an upper limit and a lower limit of the coin should convey its stability. Bitcoin is the best one indeed but would say ETH,XRP,NEO are quite safe.
newbie
Activity: 4
Merit: 0
In a dreaded bear market that's lasts a long time, do you think that stablecoins are the definite solution for preserving one's investments?

So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.

What are your thoughts? Huh


I agree that is definitely a safe bet, but it is certainly a low-risk, low reward strategy that would only benefit you as a means to guarantee that you don't lose too much of your funds over the course of a bear market. However, to go only stablecoin will probably mean you will miss out on a lot of goods when the market recovers unless you can move your invested funds quickly. I can see why you would think this is a solid option considering the prominence of such coins, specifically Project Libra, but personally, think you are better off such enduring the bear market and staying true to the coins that are prone to market volatility, as while it might not seem like it at the time, these will ultimately pay off better in the long-run. As a middle ground, you are better of just investing in coins that are less volatile but aren't stablecoins to get the best of both worlds. You can find some great places to buy these at https://www.cryptimi.com/exchanges/altcoins-exchanges

legendary
Activity: 2422
Merit: 1451
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How would stablecoins be a solution against the bear market? Whales can still go on exchanges and dump, maybe this could be made even more easier with stablecoins as now DEXs can also take part in this process with higher volumes and even less KYC.
sr. member
Activity: 1974
Merit: 453
Candidly speaking, yes. Haven the experience of a bear market from 2018 till date made me to developed more strategies for holding for gains and not for loose. My bitcoin and ether are always converted to stablecoin whenever the bear market persist. So, stablecoin are more safer than the fiats but not in all stablecoins. 

Against smaller altcoins, this may be a good strategy. But I would not prefer this against the established alts such as Ethereum and Bitcoin. Because when the bull run starts, you will have to convert your stablecoins back to BTC or ETH at higher rates. I would rather prefer keeping my ETH/BTC as such in the wallets. We are holding them for the long term. So what's the need to worry about the short-term dips?
hero member
Activity: 1932
Merit: 504
Stable coin can be alternative for who really want to take rest from trading activity in bear market. Or maybe save fiat to wait lowe price if still want to trade. Any solution means something that really can be used for people no matter what it is. Keep trading, take a rest, buy stable coin, is god as long we are not lose in our investment.
Well said, in bear market stable coins is the only savior we had aside from converting crypto to fiat. converting it to stable coins are the ones we can use if we wanted to go away for a while in trading or holding crypto.
Any strategy in trading or maybe to get profit, so actually pick stable coin  is good to do. When people maybe think stable coin is something that not really fun to trade, it can have something to help us like in bear market like this.
sr. member
Activity: 1150
Merit: 260
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In a dreaded bear market that's lasts a long time, do you think that stablecoins are the definite solution for preserving one's investments?

So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.

What are your thoughts? Huh
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.
sr. member
Activity: 978
Merit: 250
In a dreaded bear market that's lasts a long time, do you think that stablecoins are the definite solution for preserving one's investments?

So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.

What are your thoughts? Huh
Almost I count more than 7 stablecoins in cryptocurrency. Stablecoin is made for holding your funds stable, more stablecoin could come in the future. You are also believe that we should exchange stablecoin before Q2 2018 because only that's way we can hold our funds.
hero member
Activity: 1358
Merit: 509
Even if they are not the definitive solution, but they may be one of the choices. It will be the best option for you as long as you trust. But, I started to fear after the USDT price fell to 0.70$.
Almost I count more than 7 stablecoins in cryptocurrency. Stablecoin is made for holding your funds stable, more stablecoin could come in the future. You are also believe that we should exchange stablecoin before Q2 2018 because only that's way we can hold our funds.
If every coin in the market did its own business, nothing would go wrong. Like stablecoins, there are more than 7 stabilcoins on the market, but few of them are reliable.
sr. member
Activity: 756
Merit: 257
Freshdice.com
Stablecoins are necessary when there's uncertainty surrounding the market, traders who would want to secure their funds against any sudden downturn will be safe with stablecoins.

If one investor feels that the prices will change sooner but not in favor of him, stablecoins might be one of the best solutions. But of course it is still risky because you also lose the chance of the prices going the favor of your investment. It is almost impossible to determine absolutely the changes in the market so think carefully before deciding to do anything.
full member
Activity: 1456
Merit: 148
Candidly speaking, yes. Haven the experience of a bear market from 2018 till date made me to developed more strategies for holding for gains and not for loose. My bitcoin and ether are always converted to stablecoin whenever the bear market persist. So, stablecoin are more safer than the fiats but not in all stablecoins. 
sr. member
Activity: 1190
Merit: 306
If I were to be anticipating an extended bear market, I'd rather just take the fees of converting my crypto to fiat money and keep that fiat money until I see market conditions improving and convert it back to cryptocurrencies later.
That would be the smart move, and that's what stock market traders do when they don't see an opportunity to make money. 

If those stable coins op mentioned are actually falling below the fiat currencies they represent, that's not a good thing.  Not at all.  Nor do I think they're useful to crypto investors unless it's just a way to park funds on an exchange in place of fiat.  But I would hope that if they do that the stable coins wouldn't lose value.

Anyhow, stable coins and the discussion thereof bore me.  We might as well be talking about whether we should be holding cash in a safe during a bear market.  That's all these coins are, a substitute for cash.
hero member
Activity: 1470
Merit: 509
In a dreaded bear market that's lasts a long time, do you think that stablecoins are the definite solution for preserving one's investments?

So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.

What are your thoughts? Huh
In the bear market, there are two options to keep the money stable: fiat or stablecoin
Although it may charge a little more fee, fiat is a safer choice. Because there is a huge difference between the possibility of USD and USDT being scam. Even USDT itself is backed up by the USD (even if that is not true). Honestly, I have not tried any of them in the last drop, I just held BTC, but it would be the USD itself if I had the choice.
hero member
Activity: 1680
Merit: 506
Trphy.io
that's what often happens, when the bear market occurs there is no choice but to secure the assets in stablecoin because it will not decrease the value of the assets we have. when the bear market is like this traders have two options, withdraw assets to fiat or buy stablecoin. but every trader has his own strategy.
sr. member
Activity: 2436
Merit: 272
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In a dreaded bear market that's lasts a long time, do you think that stablecoins are the definite solution for preserving one's investments?

So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.

What are your thoughts? Huh
I read coin like tether can be freeze for some reasons even if it is in your wallet under your private keys so stable coins has also risks because it can be controlled by someone without your knowledge.But for investment perspective I don't really think stable coins will be better choice as well since it also has price fluctuation and increasing the supply of coins will ruin its value from the actual value of 1 USD at any time.
sr. member
Activity: 2240
Merit: 270
SOL.BIOKRIPT.COM
ETF is going for more support to stable coins and we know the reason. They might likely grant this vote of confidence early than any volatile coins. I think at a point more stable coins will be added, and the first beneficiary of the profit will be investors and staking profits can come for subsequent investors and traders. It wont need much effort to defend the price and investors are at lower risk of losing their fund.
sr. member
Activity: 1246
Merit: 285
All choices have their own risks. Stable coins are indeed quite effective to maintain prices when the market is less profitable. Although it has a chance to go down, the decline will not be too extreme compared to another cryptocurrency in general. That is what makes stable coins quite effective in maintaining funds. So it is temporary, do not depend entirely, if you understand this risk it certainly will not make you careless and dependent just like that, market fluctuations are difficult to predict. Other strategies still need to be done because cryptocurrency is very volatile and full of unpredictable things, so immediately do plan B to avoid greater losses.
copper member
Activity: 448
Merit: 3
In an anticipated long bear market, It will be more wise to convert even your stablecoin to fiat if you own a huge amount of currency. In a rare bad market situation a stable coin like the USDT may just go a little below $1. I fear leaving my coin in stable coin because I am not good in TA, I have not taken time to study it.
hero member
Activity: 994
Merit: 502
Stablecoins are basically Cryptocurrencies but they are called stablecoins for a reason, this means that no matter how volatile the market gets, they would maintain a constant value depending on the currency that they are pegged with, like you said there was a time that Tether (USDT) traded below $1 even though it was tied to the USD, but just too and check it's current rate now and you would see that it is maintaining the price of the currency that it's pegged with, so yes, Stablecoins are a great store of blue if you want the dollar value of your Cryptocurrencies to remain the same.
hero member
Activity: 1162
Merit: 516
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Stable coins are intermediate coins to hold the profit what they have in their bad time for BTC on trading site. When there is a growth automatically people will start reversing from USDT to BTC again.
Whatever coin comes nothing can replace BTC from its nature and worth.
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