Topic: Usefulness of stablecoin - page 3. (Read 405 times)
stable coins like USDT, USDC are often considered safe investments. or at least you don't have to worry about investing in stable coins. for me personally using stable coins depends on needs such as for daily trading.
You can split your capital, it is not work if you just store your money on USDT if your intention is investing. You can split your money, behalf to buy some coin and behalf you can keep it in case the price of cryptocurrency fall down so as you can buy some of them at the lower price. But you don't need to do that as long as you have a good prediction. You can spend all of your money to invest or for trading so as you will be profitable for it instead of you just store your money on USDT because you will not be profitable.
Ideally stable coins are usually backed by physical nassets equal to the value of them in circulation so that they can safeguard the holders against the volatility of the crypto markets.
where is the physical asset backing USDT?? I've been asking this very question for sometime now.. it like when a project claims they raised 10m usd during ico or private sales.. but theres no proof to back this claim Holding stablecoin is the best strategy ever in crypto space, remember when Bitcoin drowned to 3500$? This is an example of good times to make good use of your usdt or other stable coins, you want to double your coins easily? Learn to hold stablecoin and wait for the right moment, that's bear market, bear market isn't always bad, it's most time a golden moment for those who hold stable coins.
holding stable coin is like a two edged sword.. first of all, how do you know it's a bear market.. there are time when you hold on stable coins.. thinking this is the end of the deep and when you buy into btc or other coin.. the price of btc will suddenly plummet further.. before you know it you're already running into a huge loss which will take you time to recover 
Holding stablecoin is the best strategy ever in crypto space, remember when Bitcoin drowned to 3500$? This is an example of good times to make good use of your usdt or other stable coins, you want to double your coins easily? Learn to hold stablecoin and wait for the right moment, that's bear market, bear market isn't always bad, it's most time a golden moment for those who hold stable coins.
The problem is people will be so difficult when will be the correction to hold or convert our coins into the stable coin dude. You can say that it's so easy to do that but the real implementation will be much more difficult than it. We can't sure how long the bearish market will go and this also the point why it's very difficult to determine the bottom.
Ideally stable coins are usually backed by physical nassets equal to the value of them in circulation so that they can safeguard the holders against the volatility of the crypto markets.
That is the actual use of the stable coin. You trade bitcoin to a stable coin when it's on the peak then wait for the further drop so that you can use that stable coin of your choice and then re-buy those sold bitcoins you had for a lower price.
Ideal for traders and somehow for long term holders.
Ideal for traders and somehow for long term holders.
Holding stable coin is not a great idea unless you want to get interest on your dollar from some platforms like youhodler or nexo. Stable coins are trading material and you should not hold them very long even in a falling market. They should be used as intermediate only as they don't themselves increase in value. They are a good tool for day traders.
Learn to hold stablecoin and wait for the right moment
You gave USDT as example. Not a good one.
If you want to hold stable coins you better go for coins/tokens with proper 3rd party audit (which USDT doesn't have) to make sure the coins/tokens are actually backed by something real, not just empty words.
PS. It's hard to tell now if Bitcoin is again in a bear market or not. We may need some 10 days for that (i.e. halving day + 1 week).
You say as it's very easy but it is not. Problem here is how we know Bitcoin will stop decrease at 3500, then bounce up. Would you take the decision to buy at that price that time? When Bitcoin was around 3500 most people scare and afraid that it will continue go down.
Holding stablecoin is the best strategy ever in crypto space, remember when Bitcoin drowned to 3500$? This is an example of good times to make good use of your usdt or other stable coins, you want to double your coins easily? Learn to hold stablecoin and wait for the right moment, that's bear market, bear market isn't always bad, it's most time a golden moment for those who hold stable coins.
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