Topic: How do you make money on Stablecoins? (Read 291 times)

I think most of new stablecoins are audited and regulated, I am sure about GeminiUSD.
As for how to make profit from them, Bitfinex will introduce margin trading for USD/USDT pair, we might see similar pairs for other stablecoins on other exchanges.

Stablecoins are not profitable at all they are just the crypto version of fiat or we can call them tokenized fiat.
They can be used only as a hedge instrument against crypto or when you are very sure that there is a crash, downtrend or dump is coming you can swap your crypto for stablecoin and enter back at cheap price and vice versa this will grow your portfolio and profits but you should know what you are doing and even this startegy can be risky and you may end up holding stablecoin and meanwhile crypto reaches moon

In the past the stable coins was used for parking the investors’ money while a dump market as they were secured by non-volatility coins while now a number of exchanges have started USD markets so they can now shift their money to USD and do not need stablecoins must.

Well of course you can earn a little bit from trading the stable coin but you don't see stable coin being very volatile. I think you can estimate 2 percent movement during high volatility of crypto markets .

When you get the bullish trend and then secure your money on the stable coin to make sure you do not get any impact due to the volatility of crypto. Stable coin act just like stable money. That gives a lot of benefits to the speculators when they are getting a lot of profit and secure their profit on the stable coin.

I really doubt you make money out of it is just a kind of fiat storage just in case of crypto volatility so you can use it say to buy ETH or sale your ETH when is high like ETH  hits 400$ and you speculate its going to down to something like 200$ so you can then sale to stablecoin and then later buy back

You can't make money on everything. With no bull or bear, stablecoins have a different purpose.
They won't make you rich but they can enable international transfers.
And they can be a save haven once we reach another top without having to withdraw money to a bank.
That's plenty of utility already.

To put it simply, stablecoins serve investors as safe havens. If altcoin/bitcoin volatility is too high or it is coming down in value compared to fiat, you convert your position into stablecoin and wait before jumping into bitcoin/altcoin.

well
i cant say anything about did stablecoin is a verified or not.
but
if u asking how do you make money on stablecoin just a simple
stablecoins is a standar token
so its mean,for example
if btc on 1000usd/each
then u bought 1 btc
and after some day
btc going to 1100 usd,
so u get profit 100 usd fix on that time if u sell.
and also for take a safe place for me ,

You know that there are no stable coins in the cryptocurrency and all of them can crash in anytime. But you can choose USDT, USD, Paxos or other else mentioned above me as your investment so when you buy any coins with USD or USDT; it will be back to that USD/USDT. I think if you want a stable coin, then you can choose FIAT only but FIAT will up and down too even for Dollar. We make money from the differences of the price, and I am sure that it will happen in many times in a day so make sure you can buy at the low price.

stable coins are just another fancy coin for a special type of altcoins. and these coins are exactly like many other altcoins but mainly like the centralized altcoins. they are unregulated, with no guarantee, with high risk and nobody is going to be obligated to exchange them for fiat. even the most popular one (Tether aka USDT) is clearly stating that they are not responsible nor guarantee conversion between tether and fiat.

Facebook.

Then choose only corporate stable coins like USDC and Gemini dollar.

I'm not sure about the policies of these but I don't tnink so.

Those corporate stablecoins.

To save his money for the meanwhile by converting his total assets to a stable coin.

Movements in stablecoins aren't that much maybe you can earn from it if you have hundreds of thousands to millions of it.

Most of the time the movement there is just cents.

Stablecoins aren't essentially for making profits because they are pegged to a FIAT currency and are designed more for hedging against volatility as opposed to trading, and it's best to seek out the ones that are the most transparent so you can be assured they're reliable to use

I checked so how come the most controversial coin Tether is still the most popular and most demanded with the highest marketcap?

For example if I had a million dollars in my account/vault then I create my own stable coin with a supply of 1 million coins?

Is there a need for all these stablecoins that all do the same job?

If dollar crashes then stable coin will sync to it and crash?

So in a bear market like this people sell their bitcoins for stable coins until they know which way the market is heading? 

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USDT is tether right? I just had an earlier reply saying that it's the most controversial 

[moderator's note: consecutive posts merged]

If you have free time, then look at it and check the signature that I use, I think the project is good and you deserve to analyze it. I only share information, not advise or force, because the results of the analysis are not always the same, hope you are lucky.

IMHO you can't earn anything on the stable coins, but can lose everything if this will be a scum. Usually 1 stable coin = 1 usd, and that's why they called stable) Maybe you can try to buy them cheaper than 1 usd, but this is a very rare situation.

I think the question he is asking is how do you make money investing in stablecoins. I still don't understand because just read about Basecoin team refunding investors of their investments because SEC rejected their model. So those people that invested into it how do expected their ROI, may be thorugh transaction fees paid by users of the tokens

Stable coins are used by some traders (mostly large investors) during times of high volatility, when its unclear which way the market goes and when there is a high chance of major price movements.
They use stable coins to protect their investment against this volatility, since stablecoins are directly pegged against the dollar so their investment will be less impacted. Its basicly an alternative to
cashing out in FIAT (which will bring regulation, KYC rules and scrutiny with it).

There are ten stablecoins i'm aware of :

Tether : least trusted of the stablecoins and most controversial as no official audit was ever finished and presented. This stablecoin is issued by Bitfinex, which also has somewhat of a damaged reputation after getting hacked awhile back
and charging their customers in order to cope with the losses.

https://www.investinblockchain.com/new-stablecoins-2018/

Paxos Standard
Gemini Dollar
USD Coin
CarbonUSD
nUSD
Stronghold USD
Candy
LBXPeg
Tiberius Coin

Check the major exchanges and see which stablecoins they implement, that should give you an idea which ones are more in demand.
So in conclusion using stablecoins is not so much about making money, it is about protecting your investment.
Personally (eventhough i dont use stablecoins) i would check out Gemini Dollar as the Gemini exchange is well known (Winklevoss brothers), well regulated, provide strong protection and seems to have good insurance.

Which new stablecoins are coming out in 2019?

How does a person know that the stablecoin is not a scam and is audited/verified showing its backed up by something? For example USDT suppose to be backed by dollars in a account/vault. Can the buyer go to the vault and exchange his/her stablecoins for whatever it's backed by in the vault?

If stablecoin crashes and dies will buyer/hodler be compensated?

Which stablecoins are decentralised and is regulated by the government?

Why would someone by a stablecoin? Is it because it is more convenient to hold compared to the actual physical thing?

Finally how do you make money on stablecoins on the markets if there are no bull or bear markets or volatility for them?