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Topic: Why do you use stable coins? - page 5. (Read 658 times)

legendary
Activity: 1904
Merit: 1563
January 08, 2022, 10:40:39 PM
#13
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.
It is not about USDT or other mainstream stablecoins becoming unpegged, but about the possibility of locking or freezing your stablecoin assets in your exchange wallet due to the fact that these coins are heavily regulated or simply "centralized."

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?
Holding stablecoins is fine; in fact, you will most likely use them, particularly if you are actively trading on an exchange. However, it is not recommended to hold for an extended period of time for a variety of reasons related to an asset controlled by a third party. And keep in mind that an asset controlled by a third party is very similar to not holding your cryptocurrency wallet's keys/seedphrase.

Recommended read:
[UPDATED] PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets
legendary
Activity: 1456
Merit: 1108
Use chips.gg
January 08, 2022, 10:30:25 PM
#12
I use them to get in and out from some trades!  
Similar use to me, stable coins offer some sort of assurance against the market. When the market starts to dip, USDT's and BUSD's can help secure your investment until the market gets good for you to join back in. Also If you have no intention of trading, but Just want to avoid the over use of the centralised government financial system, Stable coins are a good switch as since their values are hinged to the dollar, they can be considered as a sort of "decentralised digital dollar".
hero member
Activity: 1778
Merit: 709
[Nope]No hype delivers more than hope
January 08, 2022, 08:03:38 PM
#11
The fiat>
Doubts about the reserve value of some stable coins have existed for a long time, but for now there is no other choice but to use them. That's why you shouldn't keep stable coins for too long.
hero member
Activity: 2436
Merit: 503
Cryptocasino.com
January 08, 2022, 07:49:01 PM
#10
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.
It's caused by some of people prefer to hodl stable coin instead of cashing their money to their bank account and if you're active trader and you will know what's the purpose of doing this. It's to anticipate the dump that can occur anytime and the traders can buy more token when the price goes lower again. If you're feeling worry and just withdraw your money to your bank account and others may have other opinion.

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're not missing it but remember that so many people are also become active traders and when they are believing in the stable coin and what's wrong?

Might be different if you could do a lot of your every-day normal shopping with stable coins but right now you can't.
so what's the different with doing daily trade? if you're feeling worry and then just don't use it. that's already fix your problem.
legendary
Activity: 3122
Merit: 1102
Leading Crypto Sports Betting & Casino Platform
January 08, 2022, 04:22:42 PM
#9
I maintain a balance of fiat in the centralized exchange as a parking area or reserve to conduct a trade, so I'm not sure what benefit a stable coin could provide over using fiat. Conducting a trade using stable coin pairs is not free--the exchange will still charge fees to conduct a trade in a stable coin, just as it does to conduct the trade in fiat. So I don't see the benefit or purpose of using stable coins, at least for trading.

Furthermore, the vast majority of stable coins seem to be ETH-20 based, so if you want to withdraw from the exchange or move to a different exchange, wow that is going to be expensive!

actually, you are not alone about your worry of holding stablecoin for long period of time. i guess some of the users here also have that kind of instinct that most of these stablecoins are not saying the absolute truth regarding their usd assets backing their stablecoin. as we remember, in 2019, usdt admitted they were not fully backed by usd assets, so right now, do you think they are indeed 100% backed by assets? so one mistake, and we will see these stablecoins going down. but for day to day trading, it may help the trader and using the usdt (trc20) has still the cheapest fee among them. so you can use the trc20 network instead of erc20, that is, if it is available in the exchange.
hero member
Activity: 952
Merit: 513
January 08, 2022, 04:11:20 PM
#8
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.

It's just way easier to day trade with Stablecoins.

You don't want to wait 2-3 days to make your moves because you've withdrawn the funds into a bank account and now have to wait for funds to clear back and forth. The crypto markets simply move too fast for that.

As to your concerns with custody, just don't use non 1:1 backed tokens like USDT which employ fractional reserve. USDC/DAI etc. should all be fairly safe to use.
legendary
Activity: 1778
Merit: 1474
🔃EN>>AR Translator🔃
January 08, 2022, 03:12:56 PM
#7
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?
Does there anybody already doing this?
From what i can tell, people already using stable coins for three main reasons:
1) As a trading pair like BTC and ETH with the exception that it's not fluctuated.
2) As an instrument for trading, freezing balances to avoid big loss when the price of such a crypto dropped.
3) Using it in the same way we use FIAT money to make daily small trades outside of exchanges.
hero member
Activity: 1526
Merit: 596
January 08, 2022, 02:18:03 PM
#6
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.

It's definitely a big concern if you are holding stables long term.

There is always that additional risk that you'll see your holdings fluctuate depending on the pegging mechanism of each stablecoin.

However, in the short run it is generally safe to hold stablecoins and it is way easier to trade with when you need to dump your holdings for fiat quick. It's hard to get bank funds back into crypto also.
newbie
Activity: 7
Merit: 0
January 08, 2022, 01:06:46 PM
#5
I maintain a balance of fiat in the centralized exchange as a parking area or reserve to conduct a trade, so I'm not sure what benefit a stable coin could provide over using fiat. Conducting a trade using stable coin pairs is not free--the exchange will still charge fees to conduct a trade in a stable coin, just as it does to conduct the trade in fiat. So I don't see the benefit or purpose of using stable coins, at least for trading.

Furthermore, the vast majority of stable coins seem to be ETH-20 based, so if you want to withdraw from the exchange or move to a different exchange, wow that is going to be expensive!
legendary
Activity: 3248
Merit: 1179
January 08, 2022, 12:42:30 PM
#4
I use them to get in and out from some trades! It's good to keep the value when the market is going down as well! Sometimes I gamble with them, they make it simple when you follow your bankroll! All in all stable coins are alright for use, it's the same as using any currency! Who holds stable coins there's better for a reason, to buy some dip, if not that I don't see any other purpose of holding them for a longer period!
sr. member
Activity: 2520
Merit: 280
Hire Bitcointalk Camp. Manager @ r7promotions.com
January 08, 2022, 12:35:24 PM
#3
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.
Holding stable coins doesn't make any sense to me as well, but most people are using it as a coin to keep the profits because everytime you withdraw from exchange or converting into fiat will cost you lot of fee and when you want to buy again crypto with fiat then also you have to oay kore fee and it may take even a week for your deposit to be transferred from bank to exchange in that time you will actually miss the price you wanted to buy.
sr. member
Activity: 2030
Merit: 356
January 08, 2022, 12:29:52 PM
#2
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.
newbie
Activity: 7
Merit: 0
January 08, 2022, 12:11:00 PM
#1
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.
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