Stablecoins or Fiat? - page 2. | Bitcointalksearch.org

deathcode

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Quote from: Abiky on March 28, 2024, 12:35:56 PM

When planning to protect yourself against volatile crypto market prices, which type of currency do you prefer? A stablecoin, or a traditional Fiat currency (USD, EUR, JPY, etc)? Why did you make that choice? Would you prefer holding either currency long-term? Or crypto is better for that?

Your input would be greatly appreciated. Thank you.

I prefer saving in stable assets. unless I will make a withdrawal that requires me to convert to fiat. but if not for withdrawals I would prefer stable assets.
I would not hold stable assets in the long term. it's like there's no use for it. I convert to stable assets when the market tends to move towards a decline. and once the price hits the buy target, I will buy some altcoins that I like at a cheaper price.

pawanjain

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Quote from: Abiky on April 04, 2024, 05:59:06 PM

Quote from: pawanjain on April 03, 2024, 01:01:44 PM

But you won't be able to purchase gold directly using crypto ? Or can you ? Huh

If not, then you will eventually have to exchange to fiat and then purchase gold with that.
You will lose money on the exchange fees as well. I prefer fiat but if we have a large amount then exchanging it to fiat itself would be a bigger task.
So holding stable coin would be the easiest choice out of all, if we are plannning to buy back crypto later again.

Actually, you can purchase Gold with BTC and other major cryptocurrencies through online dealers such as JM Bullion, Bullion Exchanges, and APMEX. At least in the US. Not sure if they're able to ship internationally. You can always sell your crypto directly to Fiat. I haven't seen the option to buy Gold with stablecoins, though. I wonder why? Perhaps the regulatory pressure from mainstream governments, prevents this from happening.

TBH, I've had a bad experience myself with stablecoins. Especially those living on the Ethereum blockchain. Fees are utterly-high these days. Fortunately, competing chains like TRON and Solana provide the solution to this problem. It's also possible to use stablecoin on ETH-based L2 networks if you want the added convenience. Money is being poured into stablecoins as we speak (particularly USDT), so don't expect the trend to die anytime soon. Who knows if stablecoins become the CBDCs (Central Bank Digital Currencies) of the future?

I haven't heard of these dealers yet but I visited the site from JM Bullion.
I was really surprised to see that we can purchase gold using crypto directly.
The sad thing is that JM Bullion ships only in USA and I haven't heard of any such dealers that exist in my country.

SeriouslyGiveaway

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You are referring to the volatility of the cryptocurrency market, so obviously stablecoins will not be a safe choice at that time. There has been a lot of FUDs related to USDT and USDC in the past, and with it comes very strong market volatility. No one can guarantee that in the near future MMs can use again FUDs news related to stable coins to manipulate market psychology or not.

Therefore, in my personal opinion, if you know the information in advance or have predictions about market fluctuations in the near future, you should hold fiat currencies such as USD and EUR. ..would be a safer solution. The market is still there, we have no need to risk our capital. We can use fiat money to buy back Stablecoins, Bitcoin or Altcoins when the market stabilizes again.

Strongkored

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I have never considered stablecoins as long-term storage, I think storing stablecoins for the long term whatever the purpose is much riskier than storing Fiat, and so far only stored for a short time only because to use as a means of payment, and in my opinion if you want to against the volatility of cryptocurrency isn't it worth saving fiat will be the same as a stablecoin, because the value is the same 1:1, so with this consideration, fiat will be much better but if you want to remain a stablecoin then choose a decentralized one but with a reasonable value to store.

kotajikikox

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the answer to this would depend for each person and any answer from this thread can not be taken by everyone

for example for those unbanked would of course use stablecoins for safety and saving purposes however it can be quite risky when you need to sell your funds when no one is available to buy.

leonair

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Quote from: Abiky on March 28, 2024, 12:35:56 PM

When planning to protect yourself against volatile crypto market prices, which type of currency do you prefer? A stablecoin, or a traditional Fiat currency (USD, EUR, JPY, etc)? Why did you make that choice? Would you prefer holding either currency long-term? Or crypto is better for that?

Your input would be greatly appreciated. Thank you.

Holding money in crypto is risky and stablecoins are always worth the dollar so if you have the opportunity to hold USD then I think there is no need to hold stablecoins. Because we've seen stable coins like UST get cashed before. But if you are living in Asian countries and want to hold local fiat money of your country then I would say stable coin will be better in that case because FIAT money is getting high inflation every year. Which reduces the value of your money.

Abiky

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Quote from: pawanjain on April 03, 2024, 01:01:44 PM

But you won't be able to purchase gold directly using crypto ? Or can you ? Huh

If not, then you will eventually have to exchange to fiat and then purchase gold with that.
You will lose money on the exchange fees as well. I prefer fiat but if we have a large amount then exchanging it to fiat itself would be a bigger task.
So holding stable coin would be the easiest choice out of all, if we are plannning to buy back crypto later again.

Actually, you can purchase Gold with BTC and other major cryptocurrencies through online dealers such as JM Bullion, Bullion Exchanges, and APMEX. At least in the US. Not sure if they're able to ship internationally. You can always sell your crypto directly to Fiat. I haven't seen the option to buy Gold with stablecoins, though. I wonder why? Perhaps the regulatory pressure from mainstream governments, prevents this from happening.

TBH, I've had a bad experience myself with stablecoins. Especially those living on the Ethereum blockchain. Fees are utterly-high these days. Fortunately, competing chains like TRON and Solana provide the solution to this problem. It's also possible to use stablecoin on ETH-based L2 networks if you want the added convenience. Money is being poured into stablecoins as we speak (particularly USDT), so don't expect the trend to die anytime soon. Who knows if stablecoins become the CBDCs (Central Bank Digital Currencies) of the future?

pawanjain

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Quote from: avikz on March 28, 2024, 01:02:50 PM

Quote from: Abiky on March 28, 2024, 12:35:56 PM

When planning to protect yourself against volatile crypto market prices, which type of currency do you prefer? A stablecoin, or a traditional Fiat currency (USD, EUR, JPY, etc)? Why did you make that choice? Would you prefer holding either currency long-term? Or crypto is better for that?

Your input would be greatly appreciated. Thank you.

If I really want to protect myself from the volatility of the cryptocurrency prices, I would invest in gold. To bypass the volatility of cryptocurrency, why would I choose another crypto? Doesn't make sense!

Stablecoins are great for trading. If you are a regular crypto trader, you can make use of stable coins. But when it comes to avoiding the volatility, investing in Gold is the best option.

But you won't be able to purchase gold directly using crypto ? Or can you ? Huh

If not, then you will eventually have to exchange to fiat and then purchase gold with that.
You will lose money on the exchange fees as well. I prefer fiat but if we have a large amount then exchanging it to fiat itself would be a bigger task.
So holding stable coin would be the easiest choice out of all, if we are plannning to buy back crypto later again.

Abiky

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Quote from: Ndabagi01 on March 30, 2024, 05:45:30 PM

To protect myself from the volatility of cryptocurrency, I'd rather save in stable coins than fiat. Recently, many fiat currencies have depreciated against stable coins, while stable coins have appreciated against them. Saving in a stable coin is the best option for the time being because when you convert to fiat, you will receive a higher value that is worth what it is at the time of conversion. Leaving your money in fiat may result in further losses due to the way stable coins appreciate against fiats.

When planning to hold for the long term, it is preferable to use cryptocurrency rather than fiat currency, or to combine the two. Cryptocurrencies are ideal for long-term investments, as evidenced by their rapid growth in the market in which they were introduced. Cryptocurrencies are good for long-term investments, and you'll get the most value for your money in fiat when you convert from crypto to fiat when you're finished investing and want to take profit.

Aren't stablecoins tied to the value of Fiat? So if Fiat currencies lose value, so will stablecoins. The only difference is that you can use stablecoins for "De-Fi", whereas Fiat can only be used for traditional banking. Not only that, but stablecoins are programmable. For day trading or protecting yourself against short-term volatility, stablecoins does wonders.

It's rumored that stablecoins will become the CBDCs (Central Bank Digital Currencies) experts were talking about. Why re-invent the wheel by making a digital currency from scratch when governments can use existing stablecoins for their own benefit? They can manipulate the issuing companies to meet with their demands. Sounds crazy, but anything's possible. The future is unpredictable, so lets hope for the best. Grin

Ndabagi01

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Quote from: Abiky on March 28, 2024, 12:35:56 PM

When planning to protect yourself against volatile crypto market prices, which type of currency do you prefer? A stablecoin, or a traditional Fiat currency (USD, EUR, JPY, etc)? Why did you make that choice? Would you prefer holding either currency long-term? Or crypto is better for that?

Your input would be greatly appreciated. Thank you.

To protect myself from the volatility of cryptocurrency, I'd rather save in stable coins than fiat. Recently, many fiat currencies have depreciated against stable coins, while stable coins have appreciated against them. Saving in a stable coin is the best option for the time being because when you convert to fiat, you will receive a higher value that is worth what it is at the time of conversion. Leaving your money in fiat may result in further losses due to the way stable coins appreciate against fiats.

When planning to hold for the long term, it is preferable to use cryptocurrency rather than fiat currency, or to combine the two. Cryptocurrencies are ideal for long-term investments, as evidenced by their rapid growth in the market in which they were introduced. Cryptocurrencies are good for long-term investments, and you'll get the most value for your money in fiat when you convert from crypto to fiat when you're finished investing and want to take profit.

Belarge

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Quote from: Bureau on March 29, 2024, 03:31:20 AM

The volatility of the crypto market only affects those in daily trading, long holders are not affected by the market as they know it will always be profitable in the long run. For traders, stablecoins are the best as they can be exchanged on a crypto exchange, with stablecoins traders can invest in new projects instantly rather than converting fiat to stablecoins. I prefer stablecoins over fiat currency as buying cryptocurrencies using a stablecoin is easier than using fiat. That is the sole reason I always keep some stablecoin in my exchange wallet.

We have exchange wallet that should be swiftly in good balance and not some random state. Talking about stablecoins and fiat, ofcourse I'm all in for the stablecoins because they're promising and earned when it comes to hardwork. But for fiat, It never appreciates but will depreciates when put against other strong currency. We have the fiat and stable coin in the economy and the Government only tenders strong power to the fiat because they've envision it to be the presentable feature of a country interms of exchange.

justdimin

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Quote from: Kelward on March 28, 2024, 01:05:50 PM

To protect myself from the volatile crypto market, the best option will be to convert it to stablecoins, and as the name implies it's pegged to a stable currency, the US dollar which is the standard currency for knowing the value of cryptocurrency. Most fiat currencies are not stable, they're affected by inflation, so saving your money in them reduces their values, but stablecoins like tetter, is safe to convert your money on the short term pending when you need it, also it's very convenient to convert your usdt to crypto.

Stablecoins would not be the best choice if you want to protect yourself from the volatile markets. It would make sense if you could hold it in fiat. The difference between USDT and USD is nothing, but in one of them you are trusting some people, while in the other you trust a whole nation.

I believe that bitcoin is far better option than both of course, but that is just what I believe in and I do not think that it will matter that much, its not going to be that much of a big deal in the end whichever one you pick. I hope that people could see that there is nothing wrong with Bitcoin though, because while it could be volatile, it is also quite profitable for most people who hold it long enough, many got rich thanks to it.

Mate2237

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I think this has been discussed sometimes again and there is no way I can leave stables coins Fiat. The matter what stable coins have more value then the fiat because when you invest in stable coins, every week, months you money will be in increasing. And stable keys do not means that the coins is not moving but just that the coins is not adding to value in the cryptocurrency ecosystem market. And the movement is very slow. It is a very simple logic instead of keeping your funds in the fiat currency then you key it in the stablecoins and let be there to increase your investment instead of keeping it in the local currency.

Abiky

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Quote from: avikz on March 28, 2024, 01:02:50 PM

If I really want to protect myself from the volatility of the cryptocurrency prices, I would invest in gold. To bypass the volatility of cryptocurrency, why would I choose another crypto? Doesn't make sense!

Stablecoins are great for trading. If you are a regular crypto trader, you can make use of stable coins. But when it comes to avoiding the volatility, investing in Gold is the best option.

Not a bad choice. But can you do DCA or even divide Gold into smaller units? I guess not. It's much easier and convenient for people to sell their crypto to a stablecoin or Fiat currency than something expensive like Gold. The "yellow metal" is still a volatile asset (although at a lesser extent than cryptocurrencies). For people living in third world countries, USD-backed or EUR-backed stablecoins does wonders for them. You can have stablecoins in your wallet without the need for a bank account. The only thing you need is to provide personal ID documents if you acquire stablecoins at a centralized exchange. But it's easy enough to get major stablecoins (eg: USDT and USDC) through non-KYC instant exchanges and decentralized AMMs (eg: Uniswap and Sushiswap).

Despite stablecoins' advantages, I wouldn't trust them for preserving my capital long-term. Especially when they're prone to failure. USD at a bank account is a much safer bet. Just don't invest more than what you can't afford to lose, and there should be nothing to worry about. Cheesy

Bushdark

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Quote from: Abiky on March 28, 2024, 12:35:56 PM

When planning to protect yourself against volatile crypto market prices, which type of currency do you prefer? A stablecoin, or a traditional Fiat currency (USD, EUR, JPY, etc)? Why did you make that choice? Would you prefer holding either currency long-term? Or crypto is better for that?

Your input would be greatly appreciated. Thank you.

Converting a volatile coin into a stable one is a good strategy to protect one self from the market volatility.
We don't have to sell our coin to get the normal fiat like USD, GBP etc just because we don't want a volatile coin at the moment.
Converting to a stable coin is still quite better for us to do anytime we want to buy any coin in the crypto market, we van easily opt in and swap our stable coins for any reasonable coins we want to hold for a particular period of time.

deathcode

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Quote from: Abiky on March 28, 2024, 12:35:56 PM

When planning to protect yourself against volatile crypto market prices, which type of currency do you prefer? A stablecoin, or a traditional Fiat currency (USD, EUR, JPY, etc)? Why did you make that choice? Would you prefer holding either currency long-term? Or crypto is better for that?

Your input would be greatly appreciated. Thank you.

Both can certainly be chosen, but I prefer using stablecoins over fiat. that's because I will withdraw it to my wallet, not to my bank account.
What's more, the planning that I made for these assets was to rotate and increase the assets that I had. If you make a withdrawal to a bank account there will be a tendency to use the money for your needs. just to be careful so that the value of investment assets can continue to grow instead of being reduced.

bluebit25

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One way out of this situation is stablecoins. A pretty valid benefit is being able to convert USDT into other cryptocurrencies, and all of these are insights into its ease and speed. Cryptocurrency markets provide liquid value in stablecoins so it is not difficult to transfer from one asset to another.

However, you should still consider the contrast between the potential risks of inflation affecting fiat currencies, regardless of whether they are declared “stable”, such as the US dollar. . Any currency can have its purchasing power weakened by long-term inflation, even those that support stablecoins.

Huppercase

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Quote from: Abiky on March 28, 2024, 12:35:56 PM

When planning to protect yourself against volatile crypto market prices, which type of currency do you prefer? A stablecoin, or a traditional Fiat currency (USD, EUR, JPY, etc)? Why did you make that choice? Would you prefer holding either currency long-term? Or crypto is better for that?

Your input would be greatly appreciated. Thank you.

Just close your eyes and pick one, they are all risky to convert money into but from your list, I will go wit EUR. It has a string strong value and high esteem of demand than USD, never have I seen more speculation about EUR than I do see around USD, you don't need to fear about even the purchasing power and inflation surrounding the dollar as compared to EUR in the last few years and not recent data. I don't believe in the CPI value that are been demonstrated, looks manipulated and force for people to believe.

Why not use stablecoin like Dai if you fear the centralized ones instead of going through these options? I mean you can always move between crypto and not involve fiats all the time, you don't need to involve your bank account for privacy sake you know and in situations where you might have crypto large that you might not be able to hold in your account unless you want to be keeping the fiat in the exchange which I see as unsafe practice.

john1010

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Quote from: Abiky on March 28, 2024, 12:35:56 PM

When planning to protect yourself against volatile crypto market prices, which type of currency do you prefer? A stablecoin, or a traditional Fiat currency (USD, EUR, JPY, etc)? Why did you make that choice? Would you prefer holding either currency long-term? Or crypto is better for that?

Your input would be greatly appreciated. Thank you.

Choosing between stablecoins and fiat money depends on what you need.

Stablecoins are like digital money that stays about the same value all the time. They're good for fast and cheap transactions, especially if you're sending money to someone far away. They're also handy for trading cryptocurrencies quickly without changing them back to regular money.

Fiat money is what we use every day, like dollars or euros. It's backed by governments and banks, so it's stable and widely accepted. You can trust it, and it's protected by rules and regulations.

Which one you pick depends on what you're doing and what you need. Sometimes, using both together is the best choice.

JeffBrad12

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its the same thing in term of fluctuation other than the fact that most of stablecoin backed by private company whether the reserve is audited or not but if you trust the stablecoin issuer i guess you will have no problem so long you don't hold there for too long also depends on whether the stablecoin itself truly backed with dollar or just an algorithmic stablecoin.
personally i have no problem with securing my asset in stablecoin, most of the stablecoin i presume are too big to fail anyway even though i know UST also being said the same thing but these stablecoin that i use are backed by money and i'm sure its gonna be safe for long term but that just coming from my opinion and take it with grain of salt.
Personally if you don't feel comfortable with stablecoin you can always withdraw it to your bank account or use some fiat, the process is simple anyway but you might be burdened with additional fees.
take that into account and see whatever fits your purpose.

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