Why do you use stable coins? - page 3.

hodllord

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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.

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.

gabbie2010

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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.

To be on a safer side whenever I am not trading my portfolio is exchanged to a stable coin preferably USDT, and after profit taking, purposely to allow my coins to be stable and avoid losses in any event of price dump of course I only kept the amount of coins for trading in my exchange due to the risk involved having all my coins in the exchange while excess fund is transferred to the bank as fiat to avoid touching stories associated with hacking of exchange, your idea might be suitable for hodlers but not ideal for a daily trader.

btcltcdigger

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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.

Stablecoin are basically a hedge against bear market. Or even better, a hedge against price change.
When someone tells me they want me to sell them some crypto for fiat, i sell them USDT. Because i don't have to worry about price change.
Then that person uses USDT to buy whatever crypto they like

Also, most OTC crypto->fiat trades are using stablecoins

Haselh70

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I'm thinking about buying the ACG token on Consbit because they're having an IEO right now. Buying dips is fine, but I prefer to invest in IEO.
Because ACCG Coin is a BEP-20 token that makes use of the BSC's capabilities, it has very minimal transaction, exchange, withdrawal, and other fees.

https://coinsbit.io/ieo-list/ACCG_96

Ngewex Yuk

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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 .

goldkingcoiner

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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.

Well, stable coins are as their name declares them: Stable. Meaning they don't really go up or down and are a safe haven when Bitcoin and all altcoins are dumping. You can think of trading your coin in for a stablecoin as shorting your coin 1x without having to worry about any liquidation limits.

Now, I myself would not trust just any old pegged stablecoin. I trust only the top (by volume). USDT, BUSD and so on. Anything else is too risky for me. Just like scammy DeFi platforms, scammy stablecoins are not that hard to create.

trauchot

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Stable coins are always needed because very often the cryptocurrency market falls and at these moments you need to have time to transfer your investments in Stable coins, of course, not everyone does this, as everyone has their own tactics and goals, but when a large dump of the cryptocurrency market begins, I immediately transfer cryptocurrencies in Stable coins, I also usually buy various cryptocurrencies using Stable coins, because for me this is the best option, and in general, without Stable coins, I would have already lost a lot of money and I think other people also have the same opinion, therefore, I believe that we very need Stable coins and without them will be very hard in cryptocurrency sphere.

Furious 7

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Currently the market is very risky. In this case, it is foolish to buy different coins or tokens.All markets, including the Bitcoin market, are in a very bad position at the moment. So we are very worried about the marketing situation So at the moment we should buy stable coins. We should take all these steps to avoid the risk.If we keep stable coins, we will be able to go with a lot of courage.

a wise choice, but I think the word temporary move would be better than buying because indeed the reason I am in stablecoins is to move some of my alt assets due to the bitcoin correction and indeed when the market returns to normal I will not be here anymore because I feel stablecoins is something that can be done when the market is red because it can indeed reduce losses

KaliLinux

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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.

You might be right but you do understand that every trader has their own view of how they make their decision. Just like you believe that stable coins can have whatever type of issue, do you also believe that as at the time your fiat is changed to any crypto for trading that the same crypto can have an issue and you might end up losing your funds? Crypto trading is basically risky and even your fiat currency has that risk too, haven't you heard of countries' currencies losing value every day due to a high level of inflation? so haw safe is your own currency?

Kodok Bencot

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The stable position of coins is currently very popular and replaces bitcoin as the largest daily volume, the presence of stable coins makes us calm because we keep assets from losing too much, so having a stable coin plan to be centralized is certainly a good idea to ensure stable coins don't drop.

shadowdio

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Zawardo

I see you don't understand how stablecoin is useful. If you are a trader you will use stablecoin as a safety fund like when the price is dumping you will convert your coin into stablecoin just to prevent from losing money. 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.

bittraffic

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There are long-term traders that will actually hold stable coins for a very long time waiting and praying for the price to go down. There are probably traders out there who had dumped for USDT back in March 2021 or in Nov 2021 who are still holding the stablecoin. They are playing the long game.

I know this because I still do have my stablecoins which I consider myself to be a long-term trader too. Besides if the price isn't going down to $30K, I can stake it for now for APY or send it to a defi project. But what I'm waiting for is the altcoin prices I'm watching.

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So anyway, I applied as a merit source :)

Quote from: ?? on ??

Stable presence is the best solution to make us not afraid of losing profits, and when the market is red then moving assets to stable coins is the best solution so that we can avoid big losses, because before there is stable coins I always move to strong coins like bitcoin or ethereum.

It can help only if you sell your non-stable coins to stablecoins before the market crashes, not after it crashes. So when the market is red, buying a stablecoin at the cost of bitcoin is a wrong move. Your two statements are contradicting, but I guess you understood the basic.

Quote from: kojektea on January 11, 2022, 10:33:00 AM

Some countries prohibit using cryptocurrencies to transact. It also includes stable coins. We need a stable coin when we want to return to investing after a positive trend returns to the market. With stable coins we will be easier to move funds. Because there is no need to deposit in the bank again to re-invest.

Stablecoins are cryptocurrencies, so if you country prohibits cryptocurrency then stablecoins are prohibited as well. Be careful of your local laws and invest according to them. You dont want to end up in trouble for petty reasons like these.

Quote from: pawanjain on January 09, 2022, 09:29:07 AM

I personally don't hold stable coins for a long term. I prefer holding my coins instead.
I only use stable coins when I need to withdraw money into my bank account and that is when stable coins come into picture for me.
On few occasions though, I hold stable coins for 2-3 days when I am actively trading but otherwise no.

The use of the stablecoin therefore remains the same, to hedge against market volatility and not to use them as a store for value, for that bitcoin is much better suited. Stablecoins came in as a rising demand for stability in the midst of market volatility from mainstream markets. They should not be held for too long, some risks are always there.

prosperoustop

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I try to be most of time in stable coins, look at bearish market, better to be in stables, and when you will see the bottom - thats time to buy

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Some countries prohibit using cryptocurrencies to transact. It also includes stable coins. We need a stable coin when we want to return to investing after a positive trend returns to the market. With stable coins we will be easier to move funds. Because there is no need to deposit in the bank again to re-invest.

Galley

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With the help of stable coins, you can minimize your losses in a falling market without switching to fiat. In addition, you can use the farm in the stable coin pools to the stable coin. Of course, the percentage is small, but still, the income goes.

repear7

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I mostly use USDT, BUSD. Because there is no fee for all these coins. And if I put the dollars in a coin, it is likely to decrease. Such as ether, bitcoin etc. And with these coins you can easily buy tokens. So I think every trader should keep stable coins.

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In this case i said that in the market Many stable coin are available BUSD USDN USDC USDT ect but according to my choice so i use for my money are stable so i purchase a usdt because its a very big role into the cryptocurrency and i use it very well and its a very strong coin and the next future chances is that will made a king into the stable coins.

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There are actually special benefits that we get from stable coins even though they are basically stable coins just like fiat because their prices do not change and are centralized. Here, we use stable coins for more stable transactions such as the purchase of digital goods that are indeed transactions using blockchain because it is easier.

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Some exchanges cannot directly exchange crypto to fiat or vice versa. Another advantage of stable coins is that when you want to invest but the market is not stable you can store it in usdt so that the fiat value does not change, besides that USDT is used to buy digital goods because it is more stable when transacting.

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