Most Stablecoins Can Be Frozen, Even in Your Own Wallets[/url]
Tether has that bad reputation to freeze people tether holding, that is why many people even from this forum are not recommending tether because tether company can freeze someone's tether holdings. Also the CBDC that wants to be made will almost work this way to freeze people's holdings too, but their are good ones like Dai. 
Topic: The simple way stablecoins work (Read 77 times)
This is how exactly stable coins are but not correct if you see it another way arround. With this definition, wbtc, rbtc and many pegged tokens like that are begged with bitcoin, they are mimicking the price of bitcoin, but are they stablecoin while their prices are stable with bitcoin price but they are not stable coins. I believe the real name people should call this stable coins are fiat-pegged coins. They are called stable coins, but practically they are not stable, they follow the value of fiats. If fiat devalue they will also devalue.
im usually convert my bitcoin to usdt before transfer exchange to exchange it because is stable usdt have TRC 20 (Tron Network) some exchange is 0 Fee
win win solution i think Yes, that is how it works with cryptocurrencies, fiat pegged coins are safe haven when unstable coins are falling in price, while unstable coins are converted back to if bull run has started.
No save heaven if you know of the lawsuit on Ripple in 2020 and the risk of wallet freeze with stable coins.PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets
If I sell my bitcoin, I will hold fiat and use fiat to buy bitcoin. Stable coins are unsafe in long term.
A stablecoin is a form of cryptocurrency thats value is fixed by pegging it to the price of another asset.
This is how exactly stable coins are but not correct if you see it another way arround. With this definition, wbtc, rbtc and many pegged tokens like that are begged with bitcoin, they are mimicking the price of bitcoin, but are they stablecoin while their prices are stable with bitcoin price but they are not stable coins. I believe the real name people should call this stable coins are fiat-pegged coins. They are called stable coins, but practically they are not stable, they follow the value of fiats. If fiat devalue they will also devalue.The real purpose of stablecoins is to make your coins fixed at a point that you convert.
Stable coins are not having fixed price, they are only pegged with fiats like you quoted above. During the current bull, many hodl their portfolio in stablecoin and I believe this is a very wise think to do and stable coin is the reason that people are seeing cryptocurrency as having fiat relation and impart in terms of value and stability.
Yes, that is how it works with cryptocurrencies, fiat pegged coins are safe haven when unstable coins are falling in price, while unstable coins are converted back to if bull run has started. The real purpose of stablecoins is to make your coins fixed at a point that you convert.
There are 2 times you convert:- Take profits from your bitcoin, altcoins to stable coins. Beware that stable coins are altcoins too.
- Convert your stable coins to fiat currency.
You can believe that 1 USDT (one of stable coins) has a value of 1 US dollar but it can be changed and decided by the market. The rate from USDT to USD could be bigger or smaller than 1. It is less stable if you convert USDT to your national fiat currency as your local fiat rate to USD is changing too.
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A stablecoin is a form of cryptocurrency thats value is fixed by pegging it to the price of another asset. Stablecoins can be pegged to various kinds of assets, for example USD Coin (USDC), Paxos (PAX), and TrueUSD (TUSD) are tokens backed on a 1:1 ratio by money held in bank accounts. To issue these cryptocurrencies, the companies need to place the equivalent amount of FIAT currency such as USD into bank accounts. By pegging to real-word assets in this case the US dollar, these coins avoid the price volatility of cryptocurrency trading markets. Some stablecoins are pegged to other cryptocurrencies, referred to as crypto-collateralized stablecoins. The peg of these coins is maintained through over-collateralization and stability mechanisms. A prominent example is DAI, the stablecoin minted in the Maker DAO ecosystem.
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Stablecoins are mostly used as a mechanism to hedge against the high volatility of cryptocurrency markets. Stablecoins provide many advantages when compared to traditional fiat currencies, they present faster transactions with lower fees - making them a better alternative for everyday payments.
https://trustwallet.com/stablecoins
The real purpose of stablecoins is to make your coins fixed at a point that you convert. Example when your coin has pumped high and you fear it may drop or you are not sure how long the pump or bull may last, you can convert to continuing hodling it stablecoin at same high value and whenever you decide to reconvert to either bitcoin, it gives you value as high as it were excluding very low fee. During the current bull, many hodl their portfolio in stablecoin and I believe this is a very wise think to do and stable coin is the reason that people are seeing cryptocurrency as having fiat relation and impart in terms of value and stability.
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