Why do you use stable coins? - page 4.

lucates

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Quote from: Pejoh Asu on January 09, 2022, 04:56:08 AM

The presence of stable coins makes us avoid big losses, such as in December until now the market is red so if we move to stable coins then we don't lose tens of percent, and this is what makes stable coins a good project because it makes the market safer.

I am totally agree with your point because choosing stable coins is always safe zone and we can't bear big losses. Chairman Powell said the stable coins has more use compared to other coins in the crypto maket. He even went on and said that with large network platform co-operations stable coins would be very helpful in global payment transactions.

fullhdpixel

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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?

Stable coins has been a way to cut down the long process that traders would have to go through while trading crypto and fiat. If you’re someone who is into day trading, then you would definitely know the importance of having to make use of stable coins, they make the process to be more easy for you while trading, because you wouldn’t have to be withdrawing to your bank all the time and then depositing back to the exchange and converting it. That’s quite a long process, so simply just move it to stablecoin and after that you can also easily move it back whenever you want. Also it’s fun to hold stablecoin.

But, as for someone who wants to Hodl, then you can be withdrawing to fiat whenever you are ready to withdraw, that would be better.

pawanjain

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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.

mindrust

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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.

People use stable coins because withdrawing/sending the actual USD is a pain in the ass because of the banks. They ask the source of funds, want to do KYC on you, it is slow etc. So people use these *tethered* crypto instead because nobody (usually) ask any questions about their source and you can send and receive them very fast.

Some of the stable coins are indeed may go bankrupt in the future. You are right to be worried about it. So, as always you don't put there more than you could afford to lose. Stable coins are not 100% safe. They are fast, cheap and KYC-free for a reason.

savetheFORUM

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

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?

You must be right with your approach on stablecoins as I am also having similar thought on currently available all stablecoins. It means that at any time these stablecoins may face any problem from governments hence not trusting them will always help anyone to remain safer.

For P2P trading, I am currently I make use of USDT still I do not hold them for hours. Even sometimes, if my orders remain unpicked then the amount I will be holding in stablecoins would be less than $20 only.

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

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

Yeah, I am seeing even my favorite gift-card providers are not accepting stable as of now. Hence, it would take years to use stablecoins for everyday spending.

xmonkeyx

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I use stable coins when the current market price is unstable which continues to decline and that is just to secure my assets and also avoid big risks.
I think many people do this to avoid big losses when the market is bearish and will buy other Altcoins when they have the potential to make a profit.

nitin8263

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I use stable coins to make a good gain and most important thing that these coins show good Move with BTC, if you want huge return you can hold stable coins for longterm.

pakhitheboss

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I have been using stable coin a lot as I get paid in it and I pay others in the same format. I have never used it for trading or other stuff. What I like about a stable coin is that the USD value remains stable and at the same time the transaction fee is also very less. If you use TRC20 stable coin then you will not incur any charges too if you have TRX in you wallet which is a lot more cheaper.

kryptqnick

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I don't use stable coins because I don't do trading, but I think they're useful for these purposes. Converting to fiat directly isn't always a possibility, and if you do it many times per day as a trader, your bank will probably be annoyed by it and suspect illicit activities. Also, withdrawals from the exchange can take some time to be approved, not to mention that there might be withdrawal fees. So it's way easier to keep the trading between cryptos on the exchange and use Tether or something like that to accumulate profits. And then, of course, you can convert those coins into fiat every once in a while to enjoy your profits and use that money for anything you want.

Pejoh Asu

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The presence of stable coins makes us avoid big losses, such as in December until now the market is red so if we move to stable coins then we don't lose tens of percent, and this is what makes stable coins a good project because it makes the market safer.

danherbias07

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Indeed it is not for holding.
It has great usage for trading pairs but never for an asset. But there are those who do long-term trading with these stable coins. Movements like $0.01 will make a huge difference when traded at millions in amounts and they are waiting for that moment. I think that is the next purpose of it but never really like the gold or bitcoin thing for a very long range of holding. I don't recommend this to my friends also.

tulusikhlas

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I use stable coins to keep them while I still see which coins I want to invest. Because it can be said that I can maintain my financial stability for some time. Because if we put money in coins that move high, then we will not focus on analyzing. For me minimizing risk is something important.

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Quote from: JohnBitCo on January 08, 2022, 12:29:52 PM

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.

If you are a trader, you would buy and sell many times. So it will not be suitable that every time you sell your crypto, you withdraw it straight into your bank. Then again if you want to trade, you will again convert fiat to crypto and incur all these extra costs. For this reason, stable coins are important.

I agree with you. Because the stable coin will stay the way you want it to be. If you have stable coins in any account then you can trade with them safely. If you want to withdraw the stable coins, there will be a fee. Some fees will be deducted when you want to re-account. But this is not the case with stable coins. So I think stable coins are very important.

tyz

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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.

Welcome and good question!
As for stablecoins, I have the same concerns as you. I even see many as a scam, especially USDT. Still, I use stablecoins every now and then for short term trades, especially with coins that don't directly have a USD and/or BTC trading pair somewhere. This is especially true for coins that are only tradable via a decentral exchange and therefore many such coins are only tradable against a stablecoin. But I would never hold stablecoins long term, but only short term as an intermediary asset for the trade of e.g. a small coin into USDT and from there directly into Bitcoin or USD.

bestcoins1

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Quote from: barabeku on January 09, 2022, 01:51:59 AM

Actually, withdrawing money from crypto wallet takes too much time and big commissions what is more, you will need to buy more crypto when there is a dip so personally I prefer leave my money in stable coins and wait for a moment to buy more cryptocurrency that I really believe in.
So as not to be so subjected to risks, you can just use different stable coins it means to diversify your money between USDT,USDC, DAI etc.

Withdrawing money from cryptocurrency wallets now no longer requires expensive fees, mate, because the choices are already very many and it's also the same as choosing a stablecoin that also has many types, so it's very varied in choosing the most appropriate one.

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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.

Actually, withdrawing money from crypto wallet takes too much time and big commissions what is more, you will need to buy more crypto when there is a dip so personally I prefer leave my money in stable coins and wait for a moment to buy more cryptocurrency that I really believe in.
So as not to be so subjected to risks, you can just use different stable coins it means to diversify your money between USDT,USDC, DAI etc.

shinratensei_

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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.

Glad to see you joined in crypto

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

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?

So many people are using this but converting whole of your stable coin to your back and then that will be very complicated once you need fast fund to buy back again.

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

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.

So many people are seeing this as the main concern when it comes to the stable coin but why do they still use it even when they are feeling worry about this?

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

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;

Rather than store of value and i would like to call them to use their stable coin as reserved funds. They have their own store of value but again. Reserved fund is a better word rather than store of value in case of stable coin.

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

to me this feels way too risky. What am I missing?

Yeah for you but not for others.

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

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

Have you read or at least know what's the main purpose of stable tokens that exist in the market right now? If you have not yet read about that and then you can read more about that on internet.

TheUltraElite

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So anyway, I applied as a merit source :)

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

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.

There are lot of concerns in cryptocurrency. Bitcoin being outlawed by some countries, yours could be next. But if you live in that worry you will never be able to take the services of tools available at your disposal to maximize your profits. Stablecoin is one such tool.

Quote

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?

In a Bull market, you sell your bitcoins to buy USDT at that high price on the bull market. Now you just hold the stablecoin till the market drops again. Now you spend the stablecoin to buy Bitcoin back at the lower price. If you do the math, you can understand that you actually multiplied the amount of bitcoin that you own since the first trade.

Nobody keeps stablecoins as a source of value, at least not someone who is diligent enough to understand this. They are an intermediary source to hedge your assets, IMO.

Try to apply this to the markets everyday, try on paper first - you might get the hang of it.

adaseb

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The reason why stable coins like Tether became so big is because most people got 2 exchanges typically. First is a fiat on-off ramp exchange, usually like Coinbase. And another is generally an altcoin crypto exchange like Binanace.

People would deposit fiat, convert it to tether and that tether they can send to an exchange like KuCoin or Binance and trade tons of alts and they don't need to worry about any wiring details to those exchanges. Make it much easier to trade alt coins pretty much.

Another reason is for people who want to sell bitcoin or alts when they go up and leave it in tether on cold storage and buy it back when it goes back down cheaper. This way they don't do too many transfers back and forth between their exchange and bank.

michellee

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I keep it in stable coins because when the price is down, I can buy back using stable coins and besides that, stable coins do not have much volatility like other cryptos. You should not worry because most exchanges have those stable coins and you can also send the stable coins in your hardware wallet such as Ledger Nano to buy back the altcoin or bitcoin from your wallet.

If you think that is too risky for you, you should search for other ways to reduce the risk. We sell bitcoin or altcoin in stable coins at the top price and wait for a while until the correction comes so we can buy back at a lower price. As long as you can buy at the lowest price, you should be okay and not worry about the price.

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