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Topic: There is no ROI if the crypto is a stablecoin (Read 384 times)

full member
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Stable coins developers don't create stable coins to raise funds like many ICO projects, the purpose of these coins is to keep your USD valued at a stable price digitally, its a very very useful use case, that's why many new stable coins are showing up this days, be careful which one you choose
True, stable tokens that are made to keep dollar prices in general are good stable tokens that are very useful for everyone, and if someone chooses another stable token or a new one, then the risk will obviously be huge for him.
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Stable coins developers don't create stable coins to raise funds like many ICO projects, the purpose of these coins is to keep your USD valued at a stable price digitally, its a very very useful use case, that's why many new stable coins are showing up this days, be careful which one you choose
hero member
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That's the right description about stable coins but it's not that many of them at all. There are actually a few of them that are popular.
Does anyone invest in stablecoin? I have never heard although it's possible to get a little profit sometimes. However, people use stablecoin to fix their profit or stop their loss by converting their coin to stable. There's no other use of stablecoin then this.
Probably a newbie that doesn't understand it if he/she buys it, they will think that they have invested on cryptocurrencies.
You are right, sometimes there are few people who have never or lacked research into the coins that they will invest in and think about if they buy at a good price for long-term even though all of that is wrong. There are still many newbie with minimal information about stable coins.
I have encountered some of them before that they thought that they have already invested as long as they buy a coin of their choice. But the part that they didn't know if they buy a stable coin, there's no volatility in it.
The value remains as is and they can't profit from its movement.
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Stablecoin is designed as a stable currency so that people can anchor their assets before price storms rather than making a profit. In fact, sometimes USDT is a bit more or less than $ 1 if it is traded directly, but this rarely happens so people do not consider stablecoin as an investment channel.

There are different stablecoins for different purposes. No stablecoin is perfectly stable. They are pegged to some other stable asset but because of latency or something they are not always of identical value. Other stablecoins stabilize their own rate, so they are even less stable. They are considered stablecoins because of their effort to keep the price stable.
Yes there are different stablecoins in every purpose. If the stablecoin is perfectly stable it would not earn money. The value of coins varies depending on the charts and trades. Some stable coins are considered as stable because it can manage the prices in the market. They are able to make the money in its value at a range. It doesn't goes down that low. Because of it the specific stable coim could stand on its own and not being bankrupt.
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I think that is already common sense unless you are trading it against an asset. The best thing that you could take advantage of this is the trading between a stable coin and Bitcoin. It's quite easily understood that it's going to be volatile since it's Bitcoin, and a lot of traders are speculating on it. Approaching different stable coins would be ideal, and comparing would be better, like USDT and USDC. I would prefer USDC since it's more transparent with the auditing, and there's actual cash on their vault or something. The problems that occurred on USDT is quite problematic in a way.
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Does anyone invest in stablecoin? I have never heard although it's possible to get a little profit sometimes. However, people use stablecoin to fix their profit or stop their loss by converting their coin to stable. There's no other use of stablecoin then this.

As far as I know stablecoins can actually save us from massive and sudden sideways. Converting our coins into stablecoins will benefit us for volatile market. It is obviously called "stablecoins" because the price is stable and steady.  I do not think it can be good at acquiring profits at all except of course for other purposes like keeping in stable price.

In possible case, new investors might be confused and mistakenly invest in stable coins.
Totally right! We use stable coin to store our capital when the market is too volatile. I don't think there is anyone actually invest in stable coin with the hope of earning profits. The name of it presents everything - "stablecoin". It is created to keep its value as stablest as possible to provide people a way to convert their investment.
sr. member
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Does anyone invest in stablecoin? I have never heard although it's possible to get a little profit sometimes. However, people use stablecoin to fix their profit or stop their loss by converting their coin to stable. There's no other use of stablecoin then this.

As far as I know stablecoins can actually save us from massive and sudden sideways. Converting our coins into stablecoins will benefit us for volatile market. It is obviously called "stablecoins" because the price is stable and steady.  I do not think it can be good at acquiring profits at all except of course for other purposes like keeping in stable price.

In possible case, new investors might be confused and mistakenly invest in stable coins.
full member
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Honestly, I never trusted these stablecoin, why should I hold them when I can just hold a real USD instead.  In an exchange where fiat cash is supported, why do we have to use stablecoin when there is no profit on it?  I see, people tend to ride the trend and stablecoin were the trend back then.  Just for bragging I think
I don't also see a significant essence why some investors keep on investing in stablecoins (particularly Tether). Maybe they only want to embrace a new technology however I'm not aware of its real applications either hmm. Well, maybe you are right, they used it to look more techie and advanced than those who only used fiat Grin.

I would rather choose to put my money in the bank tjan investing on such thing. At least I can get interest there lol.
legendary
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As easy as it sounds, it is not rocket science to understand the simple concept behind creating the stablecoins. There is no need to withdraw the fiat after making a profit in trading and vice versa. The problem is the real value behind the new stable coins, Tether is not reliable after the many accusations against Bitfinex's random BTC pumps.

Also last year, Tether admitted that at one point they are not totally backed by USD. So do you think they are telling the absolute truth about their assets? And also, the same with other stable coins? Stablecoins are supposed to have stable price and are pegged to certain fiat currency. So there's really no way you can get good profit out of it. But instead you just pray that when you exchange it back to your fiat, you will have no big losses.

Honestly, I never trusted these stablecoin, why should I hold them when I can just hold a real USD instead.  In an exchange where fiat cash is supported, why do we have to use stablecoin when there is no profit on it?  I see, people tend to ride the trend and stablecoin were the trend back then.  Just for bragging I think, and other falls for the belief of reassuring our crypto's value by converting it to stablecoin once the crypto market is unstable little that they know that once the crypto market is unstable, this stablecoin will also be affected, check its previous history.  In short stablecoins are just agendas' without profit to those who believe in it. Grin
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As easy as it sounds, it is not rocket science to understand the simple concept behind creating the stablecoins. There is no need to withdraw the fiat after making a profit in trading and vice versa. The problem is the real value behind the new stable coins, Tether is not reliable after the many accusations against Bitfinex's random BTC pumps.

Also last year, Tether admitted that at one point they are not totally backed by USD. So do you think they are telling the absolute truth about their assets? And also, the same with other stable coins? Stablecoins are supposed to have stable price and are pegged to certain fiat currency. So there's really no way you can get good profit out of it. But instead you just pray that when you exchange it back to your fiat, you will have no big losses.
legendary
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As easy as it sounds, it is not rocket science to understand the simple concept behind creating the stablecoins. There is no need to withdraw the fiat after making a profit in trading and vice versa. The problem is the real value behind the new stable coins, Tether is not reliable after the many accusations against Bitfinex's random BTC pumps.
legendary
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I can say it is laughable to think that someone will invest in a stablecoin because as we know, it is stable and tends its purpose is to keep it not to fluctuate so there is a little to no means of gaining from it if we invest our money on it.  But what if a stablecoin is a POS coin, are you willing to invest in it?  Oh well, I will be the first one to admit that I am very interested in investing in it if the stablecoin is  staking.

Some not so obvious stablecoins are not very stable and that's why you don't know that they are actually making an effort to stabilize it.

Sorry, I don't pay attention on some unknown stablecoins created only to money grab, and yes they are not very stable because developer or project owner cannot support the promised value of that stable coin because in reality, this kind of developers have no money to fund the value of the said stablecoins they created.  All they have are just idea and air but no actual money in their pocket.  



I have noticed that there are many people here who do not understand that many cryptocurrencies are stablecoins. Stablecoin means that its price is designed to be as stable as possible. That means there will be no ROI from buying and hodling bunch of stablecoins. Coins with very large or infinite max supply are very likely designed to be stablecoins because that way they can stabilize the price by emitting more coins when the coin scales rapidly. Just like they do with FIAT to keep the exchange rate stable. Stablecoins are rarely perfectly stable, but they are considered stablecoins because of their effort to keep the price stable.

I think you are getting it the wrong way.  Stablecoins are token or coins that have an absolute value or fixed assigned value(thought it is really not that absolute because they tend to fluctuate a little). It is not dependent on its supply but rather on the fix value the developer wanted it to have.

Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference. Stablecoins may be pegged to a currency like the U.S. dollar or to a commodity's price such as gold.


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I have noticed that there are many people here who do not understand that many cryptocurrencies are stablecoins. Stablecoin means that its price is designed to be as stable as possible. That means there will be no ROI from buying and hodling bunch of stablecoins. Coins with very large or infinite max supply are very likely designed to be stablecoins because that way they can stabilize the price by emitting more coins when the coin scales rapidly. Just like they do with FIAT to keep the exchange rate stable. Stablecoins are rarely perfectly stable, but they are considered stablecoins because of their effort to keep the price stable.

The truth is that, why would you focus on stable coins as a genuine spot for investment? My first question is that, why do you use a stable coin? A straight forward answer to that and you have an understanding of what stable coins are. Stable coins are not meant to grant you an return on investment; it is to give you a reassurances that your funds won't witness dip or pump.
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I have noticed that there are many people here who do not understand that many cryptocurrencies are stablecoins. Stablecoin means that its price is designed to be as stable as possible. That means there will be no ROI from buying and hodling bunch of stablecoins. Coins with very large or infinite max supply are very likely designed to be stablecoins because that way they can stabilize the price by emitting more coins when the coin scales rapidly. Just like they do with FIAT to keep the exchange rate stable. Stablecoins are rarely perfectly stable, but they are considered stablecoins because of their effort to keep the price stable.
Are newbies this stupid not to know the difference between a stable coin and a volatile coin? Have you ever seen people investing in stable coins to make gains? This is impossible, people buy stable coins to store $$$, most times traders use stable coins to take advantage of the market when dumps happens, I do the same too

It's not only newbies. I think many projects aren't announcing that they are making an effort to stabilize the price. For them it's like a bug that they are trying to fix, but traders love it.
hero member
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Based on my little understanding of stable coin, it is meant for stability. It is most useful in the time of the bear market. Most times in order to minimize our loss, we can trade our portfolio for stable coin and then convert back to token when price start going up. we can also put our assets in stable coin if we don't want to trade it for fiat yet.

If you want to keep your money value, you can use a stable coin to prevent the down of the price. If the coin is down, you can buy back the coin using the stable coin. The stable coin can prevent or minimize the loss, but if you don't use the stable coin to trade, you will not have a chance to increase the amount of the stable coin. The ROI will not too big as we know that the stable coin will not increase or decrease too high or low.
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I have noticed that there are many people here who do not understand that many cryptocurrencies are stablecoins. Stablecoin means that its price is designed to be as stable as possible. That means there will be no ROI from buying and hodling bunch of stablecoins. Coins with very large or infinite max supply are very likely designed to be stablecoins because that way they can stabilize the price by emitting more coins when the coin scales rapidly. Just like they do with FIAT to keep the exchange rate stable. Stablecoins are rarely perfectly stable, but they are considered stablecoins because of their effort to keep the price stable.
Are newbies this stupid not to know the difference between a stable coin and a volatile coin? Have you ever seen people investing in stable coins to make gains? This is impossible, people buy stable coins to store $$$, most times traders use stable coins to take advantage of the market when dumps happens, I do the same too
full member
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Stable coin means the value is getting depreciating due to inflation so if someone holding stable coin makes no sense.And stable coins are created to make payments via blockchain network with the current fiat based value so its centralized and created for making payments so yes there is no ROI.
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Does anyone invest in stablecoin? I have never heard although it's possible to get a little profit sometimes. However, people use stablecoin to fix their profit or stop their loss by converting their coin to stable. There's no other use of stablecoin then this.
Im not invest in stablecoin, but i buy stablecoin, like you say, stablecoin for secure profit also stop loss. I buy it also for stategy to making profits.
But if talk about investment, especially long term investment, like OP say "There is no ROI if invest in stablecoin"
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Based on my little understanding of stable coin, it is meant for stability. It is most useful in the time of the bear market. Most times in order to minimize our loss, we can trade our portfolio for stable coin and then convert back to token when price start going up. we can also put our assets in stable coin if we don't want to trade it for fiat yet.
Thats thr strategy, but also I am wondering what else its purpose aside from being a stable safe haven when you want to keep your liquidity for quite sometime. This is what others do, if they dump their coins such as btc or eth, they will sell it for stablecoin and wait again to buy some cheap one. But its actual use case only for that purpose? Any other usefulness suggestiom for stablecoin? Does some stablecoin can be stake?
legendary
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Plenty of people trade stablecoins, so it's actually quite possible to turn a profit while simply holding stable assets.

A variety of DeFi protocols offer between 5-18% APR for providing liquidity or collateral-backed loans with stablecoins, while traders are able to capitalize on the small fluctuations that occur in the true USD value of stablecoins as a result of day-to-day changes in demand.

Plus, you'll sometimes get an opportunity to buy stablecoins like Tether or TrueUSD discounted during waves of FUD, where morons sell their dollar-backed assets for less than $1. USDT has gone down to as low as $0.92 before if I recall—excellent opportunity to get some practically guaranteed profits.
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