Why do you use stable coins? - page 2.

LastKiss

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Quote from: Normie_buys_crypto on January 08, 2022, 12:11:00 PM

Hi, I'm a normie who finally got into crypto in nov 2021. But I don't get stable coins. When you sell your crypto, why don't you just convert back to fiat and put that fiat into your bank account right away? I worry about stable coins becoming un-pegged; this is a big concern for me; it's an extra worry that you don't have if you just convert back to fiat right away.

I can see using stable coins as a trading pair to purchase alts on a dex but I don't understand holding stable coins for longer periods of time like weeks, months or years as a store of value; to me this feels way too risky. What am I missing?

Might be different if you could do a lot of your every-day normal shopping with stable coins but right now you can't.

There's always a risk in this cryptocurrency even their stable coins, why do many people use stable coins instead of just investing in altcoins or bitcoin? Some of them maybe want to keep their value when bear market happening, some of them want to stake them in some platform to get yearly profits tho this is not that profitable, and it can be used to withdraw our money from the exchange to our savings/wallet

senyorito123

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Stable coins can be used as our maintaining balance for purchasing, and it serves as our buying power because it doesn't decline with huge amount. Same with usdt, we can have the assurance of not losing much money because it gave you more time to wait for more chance to eye good coins that went down then you'll have the opportunity to buy during the dip using your buffer.

zonefloor

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Everyone wants their money to be guaranteed in some way. But why would I complicate the same job? The reason we use stable cryptocurrencies is because it's a safe haven when markets go bad. If we can switch to stable money at the right time, we will not lose money, on the contrary, we can increase the amount we have by buying more at low. Other than that, for crypto money investors who are constantly chasing opportunities, such moves can cause bad results and miss opportunities, even momentarily. Posting from the bank account to the exchange platform becomes worthless for a long time, as they approve the transaction and send transactions between exchange platforms. It can also cause serious problems in taxation issues.

SlimShadyMmp

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Stable coin is a better way to go back into the market and seriously some cash in some countries can lose cash value like hell and you might just lose your cash converting into fiat So basically people keep cash in order to make quick cash turn around I think

glendall

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I use stablecoins to save me from losses, and make it easier for me to exchange to fiat and withdraw to the bank as much as I need
because if I withdraw everything to the bank it will be difficult for me if I want to shop for other coins at the right time to enter certain coins

dunfida

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Quote from: Normie_buys_crypto on January 08, 2022, 12:11:00 PM

Hi, I'm a normie who finally got into crypto in nov 2021. But I don't get stable coins. When you sell your crypto, why don't you just convert back to fiat and put that fiat into your bank account right away? I worry about stable coins becoming un-pegged; this is a big concern for me; it's an extra worry that you don't have if you just convert back to fiat right away.

I can see using stable coins as a trading pair to purchase alts on a dex but I don't understand holding stable coins for longer periods of time like weeks, months or years as a store of value; to me this feels way too risky. What am I missing?

Might be different if you could do a lot of your every-day normal shopping with stable coins but right now you can't.

I do only make use of stable coin when i do tend to secure out my profits in USD value of course or simply talks about saving up my ass with the volatility here on the market.

Once you do know the aspect of its usage then you could really take advantage of it, just dont mind off about investment purposes because it wont really fit out into that criteria.

You would able to realize things on whats the real deal with these stable coins if you do made actual trades and investment.

Rengga Jati

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I commonly use stable coins for:
1. When trading, I will convert to stable coins and then use them to continue trading by buying other available pairs with stable coins.
2. Going to cash out to bank account. I commonly use stablecoins in order to cash out to the banks.
3. Save some stable coins in order to prepare them to buy when the market going to get the market corrections.

sayaya17

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Of course holding stable coins like USDT will be very useful and simple for crypto traders, because this will make it easier for them to buy crypto assets, especially when crypto the price drops, traders who hold USDT can buy first, than those who store fiat in the bank.

tarable

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if we convert the proceeds from the sale directly to the bank, then we have to convert back fiat to crypto and that is not a trader's job. there are also people who convert directly to fiat and put fiat into the bank, but not 100%. it could be 30% to 40%, the rest we save for trading activities again.

Gorosden

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To store money in digital form, very useful than keeping money in fiat and bank, you can easily take advantage of dips if coin value drops by using usdt to buy instantly as a crypto investors is wise to always have some usdt around in this market cos opportunity can come at any time

aruldaroy

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Quote from: Ngewex Yuk on January 16, 2022, 05:46:14 AM

When we see the market is going down due to a lot of FUD then the best thing I do is immediately switch to a stable coin like BUSD or Tether, this proved to be more secure so I was able to save more than 30% of assets since december and now its time to buy cryptocurrencies again .

That's for those who are familiar with the world of the bitcoin market, of course, quickly switch to stablecoins when the market is hot as it is today, but for those who are new to the market or who have just joined the market, of course they panic and wait for time to return to normal.
although sometimes there is a big loss.

OrangeII

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Personally, I sell my assets and hold the coin stable because it is more flexible. when I want to use the money for business purposes, I just use it. what's more I can easily send stable coins from one exchange to another. when i convert it to fiat, it will be inflexible anymore, and need process to convert it to stable coin. however, it's a matter of flexibility. well, if i have profited from it, then i will convert it to fiat and use for personal, or offline business.

Vaskiy

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Stablecoins are used to maintain the portfolio in a stabilized manner unlike the market trend. It is quite an easy thing to trade against stablecoins when the market is bullish and buy back when the market crashes. This is the major use of stablecoins. Also users find it easy to calculate against other cryptocurrencies while trading, and if the same is done against any other altcoin it might be confusing at the beginning. Apart there is no much uses of stablecoins.

gurunanakji777

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As a newbie, we all get afraid and also follow the same as you said. Generally, I use stable coins to buy the dip or whenever the market makes a correction or sometimes when I feel it's better to convert in stable coins rather than in other altcoins that are expected to drop. I would say If you have an easy option to convert your money in crypto with your country's fiat currency then it's better to keep in your country's fiat currency it's my opinion rest you can believe stable coins also.

Benefactor

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Of course to exchange, you will again change fiat over to crypto and bring about this large number of additional expenses. Thus, stable coins are significant. I bet with them, they simplify it when you follow your bankroll! All things considered stable coins are okay for use, it's equivalent to utilizing any cash.

tulusikhlas

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Honestly I myself use stablecoins to safeguard my assets. We need to have the right time when to buy, hold or even wait for the right time to enter.
If we put money in a coin whose movement is quite high, while we are still looking for which coin we will invest, it is too risky. So one of the reasons I use stablecoins is to wait for the right time for me to invest in other coins.

ChrisPop

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Like other forum members said people use stablecoins for convenience and ease of trade, fee reduction. I agree that stablecoins are inherently risky to store value in.

However, I believe one can minimize the risk by diversifying in a basket of "trusted" stablecoins.

Some people use stablecoins purely to benefit from the higher yields offered by some protocols (lending, liquidity mining, etc.)

jeungo

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These coins are only used for one purpose, which is to repurchase coins through an alternative stablecoin. I think most people use USDT, USDC for purpose. They don't accidentally trade bulls and bears. The use of other coins with a non-fixed rate does not make it possible to fix.

Shasha80

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Quote from: hodllord on January 16, 2022, 09:45:31 AM

Quote from: Normie_buys_crypto on January 08, 2022, 12:11:00 PM

Hi, I'm a normie who finally got into crypto in nov 2021. But I don't get stable coins. When you sell your crypto, why don't you just convert back to fiat and put that fiat into your bank account right away? I worry about stable coins becoming un-pegged; this is a big concern for me; it's an extra worry that you don't have if you just convert back to fiat right away.

I can see using stable coins as a trading pair to purchase alts on a dex but I don't understand holding stable coins for longer periods of time like weeks, months or years as a store of value; to me this feels way too risky. What am I missing?

Might be different if you could do a lot of your every-day normal shopping with stable coins but right now you can't.

Because it's need to buy another crypto.

It s much more expensive to buy using your fiat directly to crypto by using third party payment processing system.
It is much more better if you buy a stable coin same value as your fiat, then buy crypto and if you want to sell then sell it for stable if your just planning
to buy another crypto again in no time.

There's no point of withdrawing your money everytime you sell and depositing from bank everytime you want to buy.

It's true that we use stable coins to store capital for trading, or use stable coins to store the profits we make from trading. Because this
can avoid us from the volatile crypto market, then it makes it easier for us to be able to buy another coins if the price drops. So it will cost
a lot of money if we make withdrawals to the bank too often. It is better to make it more effective to make withdrawals to the bank only
when we will need to buy something. If not, it's better to keep them in stable coins, so we can use them as trading capital. It can also be
if the profit we make is very large, and also we don't need money to buy anything. We buy coins that have strong fundamentals and hold
for the long term. That's much more profitable than saving in a bank, which is certain the value will continue to decline due to inflation.

eaLiTy

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Quote from: shadowdio on January 16, 2022, 02:00:25 AM

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And yes it is risky if you store all your money in stable coin there are still many people doubt of stable coins so it is better to store your money in the bank.

The risk is real, you never know when these so called stable currencies will get into trouble. Even i will be holding stable coins for the short term when i am trading but i am not confident enough to hold them for a long term. Most of the time i am holding USDT in TRC20 network because of lower fees and the other one i use is BUSD because of the lower fees obviously and it is easier to move to metamask for other BEP 20 transactions.

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