Topic: Is it good or bad idea saving every penny on crypto stable coins (Read 1010 times)

I know that there are people that are very scared of putting there token in a volatile coins because of the market movement.
Sometimes it's could be because they could need the fund as quick as possible and which could make them decide to keep it as stable coins to ensure that the value does not depreciate. We just need to understand what we have and how we want things to be for us.
The price of many crypto projects are already up and we can take the advantage now.

I do agree that it is going to be based on what you spend, but also if you want to invest into USDT, that makes me question the difference between USDT and USD, like what's the difference? I could just get USD and put it in savings account at bank and seems like that would be the same, in fact I would get more in return for it as well so it looks like it would be even better. I get that it is not that simple to keep it in USD, but still USDT doesn't make sense neither.

You trust Tether as a company more than you trust the US government, that's silly. Just keep it in bitcoin, that's what I do and I will forever do that, makes no sense to do it any other way and should not be all that easy to handle it if you ask me as well, just buy and hold, simple as that.

The problem is that no one dares to guarantee that your USDT will be truly safe forever. And even if you put it in USDT, the value will just be like that, right? There is no significant increase. Yes, that's all, for stable coins. Meanwhile, there are sometimes many pros and cons regarding stable coins, regarding their security and the possibility of them lasting a long time or not. because various things can happen as soon as possible.

So make sure you first understand the various risks of stable coins if they are used for the long term. However, I'm not saying it's not good, but there needs to be further analysis regarding the stable coin chosen.

And then, actually, instead of keeping it in USDT, why not just go for BTC? This is a coin that has a lot of potential whatever it is. So, it might actually have a big impact on the value of your money.

If you read carefully what OP wrote in the thread, his purpose is for saving. He is very aware that he doesn't invest his money but he does saving. He knows the value of stablecoins won't move significantly like Bitcoin or other crypto coins.

We must understand that not every one wants to invest their money. Sometimes they need to have saving, it is for reserved money in the future. Why they don't want to invest all the money? When we invest our money, it has the chance to fail, so we may lose the money. IF we save our money into stable things, we can ensure that we have reserved money in the future. It is very needed when we have urgent needs.

So, OP doesn't want to look for any business. He just wants to save the money into stable things.

Due to charges from the bank, I prefer you keep saving in USDT because, you are not going to face any charge while you money is on a wallet. Mind you, you are not advised to keep your money in an exchange for too long because they are the primary targets of hackers, and in exchanges you are not the holder of your coin. You only get access to send them by using your passkey, but the real seed phrase are not in your watch. But If you keep your coins in a non custodial wallet they are safe if you keep your seed phrase safe.

Betting everything on stablecoins in my opinion is a bad idea, you obviously save bank commissions and if you know how to move well you can find stakes/interests of up to 10% on usdt, but i would do in this way i would invest half of the capital in stablecoins and half in promising altcoins that can only go up like btc, etc, bnb

Stablecoins like USFT is not profitable, it is just like you saving in the back. Instead of doing this and since you are exposing yourself in the crypto space, why not invest in volatile yet profitable coins like ETH, BNB, and some of the top altcoins? Though it was risky but the point is that we want to grow our money and one way of doing this is to invest in projects that give us passive returns ROI. But I won't be saying to put everything you have (savings) in crypto. You can still save some in the banks and some part of it into crypto investment. We should take the necessary precautions and the safety of our funds.

Saving all your money in crypto stablecoins has its good and bad sides:

Good Side:
1. Safe and Steady: Stablecoins are like digital versions of regular money, so they don't jump up and down in value like other cryptocurrencies. It's like having money in your pocket that doesn't change in worth too much.
2. Chance for More Money: Sometimes, if you put your stablecoins into special savings accounts, you can earn more money than in regular bank accounts. It's like having a piggy bank that grows faster.

Bad Side:
1. Risky Business: Putting all your money into stablecoins means trusting the people who run them. If something goes wrong with them or the rules change, you might lose your money.
2. Rules Can Change: Stablecoins are still kind of new, and the people in charge don't always agree on how to handle them. That means there's a chance they might not be allowed or could suddenly change in ways that affect your savings.
3. Tech Troubles: Sometimes, the computer programs that run stablecoins can have problems, like getting hacked or making mistakes. If that happens, you might lose your money or have trouble getting it back.

So, while saving in stablecoins can be a good way to keep your money steady and maybe earn some extra cash, it's important to remember there are risks too.

The idea of saving money in USDT solely rely whether your final spending is USD or other currency let say for we that are not using USD as our finished end might be a good opportunity for us but those who are spending USD it makes no more sense saving it but you can only overcome some bank charges otherwise there is no difference. People who spend on other currency when the dollar rises against their currency it could be a good opportunity for them to cash out big time but the disadvantage is that when dollar is losing against their currency then your savings also reduces, instead saving money in Bitcoin is the best option although this is also volatile because since the price of bitcoin is not stable and you might get panicked and sell of one day if time not taken.

Indeed, there are conditions to experience a dump even if it is a few cents, it is very felt if you have tens of thousands of $. For me, stable coins are a complement for those who want to store long-term crypto assets while mentally preparing for investment. Because it is more stable than a highly volatile one, of course it will be very high risk, even so crypto assets are also the goal for better holders in addition to other altcoins or bitcoin.

If you believe in usdt / stable coins, of course so far all crypto assets have not disappointed and have been able to recover more than ATH.
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Indeed, it is almost similar to storing in local financial institutions, tends to be stable and minimal risk.

But if you store in stable coins you can buy and sell at any time in the market, of course, you will be interested in buying other cryptos by getting used to looking at crypto charts, sometimes from habit comes confidence and being able to make decisions. If you have come this far, you just need to survive and add other assets to the portfolio.

Stable coins is never been a best coin to invest your money while waiting for. why not invest for bitcoin if you are talking months from now because for sure you will be benefiting in the coming month or at least if you are willing then a year because this is the estimated time for bitcoin to show great increase.
and also  since you posted this since February then you should have been earning now.

There are no benefits you will get for holding stable currency as like USDT, and you know it's also risky to hold for long term because it's a centralized. Bank is safe option i think, and bank will give you interest in every month, may be less profit but you need to concern about your money safety. Stable coin can be freeze or blacklisted.

Remember cryptocurrencies  are highly volatile currencies which the value is potentialed to fluctuate so that you don't think you're getting on the safer side of having your funds saved in the Crypto wallets knowing that you'd make use of the money in just couple of days of week.
It's risky taking this risk so I'm saying to you that if you're not ready to save your funds in the crypto without considering the profit and lost potentials of it then you really have to put that in considerations that you might loose more to that fund saved in the crypto than the bank may charge you for their services. If you're lucky enough too it can obtain you profits while holding on short term holding else long term holding would always serve you the best in the crypto currencies industry. Although it also depends on the crypto currency you got your money saved in because there are crypto coins that are best suit for long term and short term holding such as bitcoin, Eth and the BnB, they are reputable and reliable crypto currencies but while looking at a short term holding then you've to look out for any reliable AltCoins with the potentials to quick interests which you'd be demanded to sell as quick as you obtains the profits else you may lost your funds depending on the volatility potentials of the Coins.

How funny it's that we can't escape patronizing the banks because at your point of selling your holdings after profit counts you'd still convert your digital holding to the traditional currency using the centralized banking.

It depends on your trust, do you trust banks or crypto exchanges more? Personally when it comes to storing assets or money, I feel much safer if I store it in a bank. For me crypto exchanges are only a place to buy and sell crypto or as a means of storing crypto investments.

For me I don't think saving up in usdt is because it has been stable for quite some time now yeah but it will be best in more like nation whose local currency are being seriously undergoing inflation but if the value of your local currency is good enough I will advice that you save in your local bank.

I don't think saving using USDT would be too bad. Although it is a fixed currency, usdt can create currency value differences with the local currency of different countries. If your country's currency is not USDT, you can convert USDT to own country's currency for personal needs, the price of USDT may be lower or higher in economic context, but it won't make much difference. Whether you keep your currency in a bank or stored in USDT is up to you. But If you are thinking of increasing your financial goals in the future then definitely you need to make investment decisions,Be it Bitcoin and any other investment sector.

stablecoin have their share of risks that you should be thinking of some algorithmic stablecoin exposed the risk of repeating the history like UST, some stablecoin that are backed by money doesn't necessarily means they are truly backed without any transparent disclosure of the audit so everything has their share of risk, at least in the bank its insured by the government that your money is safe and they are usually tightly regulated.
the existence of stablecoin in itself is just to bridge fiat to crypto for investment and trading so that any investors and trader could save up their wealth sparing it from the volatility with ease.
i don't think its really that good for saving money, instead you would be better off saving your money in bitcoin and ethereum anyway since it means you are saving and investing and there's many way that these coin in general are more secure than saving in stablecoin because its got the massive liquidity as well as its not depending on certain company for it to retain its value.

I think that's a good idea, there is different between saving money in the bank and also to save your money in crypto, saving your money in crypto is just the same as investing. probably if you save your money in the bank the money will be stagnant it won't add anything instead you will be charged for card maint or other things as the case may be,but if you invest the money in most of this coin like bitcoin or ethereum probably if you can hold on to it for a very long time depending on the kind of wallet you're using I'm pretty sure that you can get ×2 of that money you invested.

I think of the opposite of these mindsets. I don't like to keep my money in stable currencies as they are stable and won't move in value. Instead i would like to invest every penny i have in any kind of potential business that can make money and will be able to make an impact in its own category. If it goes down i will add more money to average down my break, even because i trust my research about the project and confident that it will do better when the right time comes.

How sure are you that you are going to get your money back with profits in days or months? If you want to invest in crypto, you should be aware of the risk involved. There is no guarantee of getting your money back with profits in a short period of time, but if you want to invest in USDT, then I won't argue your funds will be there. But in times of saving money, don't think about using the money you will use in days or months to buy coins. You may lose when you are ready to use the money because there is a possibility that the coins may dump, and after the dumping of the coin and you need the money at that period, you must sell that investment unless you have another money to do what you wanted to do. 

However, nobody will tell you what is going to happen with your funds because we can't predict the future. The advice is that after the investment, make sure you hide your private key in a safe place. But you are asking whether you will lose your money or not. I dont think you will get that answer here, or is it that you did not trust where you want to put your money? If you did not or cannot take the risk, I will advise you to leave your money in the bank instead.