Why do you use stable coins? | Bitcointalksearch.org

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: arifteguhr on January 20, 2022, 12:04:47 AM

Some people are still too fond of coins or tokens that are very low in value and that is certainly not wrong as long as the coin or token is still very good, so they will not see expensive coins like ETH at this time even though it is also better than the coins which is still cheap at this time

True there are people like that who are fixated on some specific coin. But there will always be those who are feeding on the hype train and holding on to shitcoins. It does not mean they are bad, rather the chance that these coins can be big is very low and therefore not worth putting your time into them.

Stablecoins are not same though. They have some purpose in a trader's perspective. However holding them for a long term gain is again wrong. These coins will not show market volatility that BTC or ETH does. Their main use is to be an intermediary as a hedge against the steep down or up swings. Useful if you know how to use them.

Stablecoins are centralized and government minting controlled. Keep that in mind when dealing with them. Use then but dont get too attached.

RealMalatesta

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Quote from: superman184 on January 21, 2022, 02:24:04 PM

Maybe your concerns are much different from mine. I'm more worried about the Fiat at the moment. If crypto continues to grow, there is a possibility that Fiat will be abandoned and become a stable coin as a replacement for Fiat. The security level of stable coins is much higher compared to Fiat. If you deposit large amounts of money in the bank, is there any guarantee that your money will be safe? If the defendants in the bank ran away and took all your money, would the state that gave the license to the bank pay all your money? The financial authorities limit you to keep a certain amount of money in the bank. If you save more than the specified amount, the financial authorities will not provide any guarantees.

Okay so we have two possible outcomes, one is a bank running with your money, and the other is tether running with your money. Which one do you really think is more possible? I mean not like banks never collapse, they do, and I have seen it but it is such a rare occasion that it is not a common threat.

Plus, governments guarantee a certain amount of your money as well, which makes it easier for people to trust banks unless they have a huge amount. Whereas Tether is just a company and they are not even registered in most important places, last I remember they had like BAHAMAS registration or something. Which one looks more suspicious? I have to say even though I dislike fiat, I rather hold dollars than USDT (although I prefer crypto over dollars as well).

adiebitsler

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It's the right way to divide what is your profit and which is a start-up capital from what you have. it's best to keep looking at the graph that will grow continuously slowly. If you are consistent to make these profits then it becomes a very profitable thing.

I hope you are not dreaming because the current market conditions are not improving so there is nothing you need to monitor and if you say about an increase in each price chart at this time, then surely you are in a dream and have not woken up from your sleep.

LUCKMCFLY

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Quote from: sayaya17 on January 18, 2022, 05:54:26 PM

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.

Yes, that is a great usability, but I think that one of the main reasons to own usdt or any stablecoin is because also in a really bearish market if you are not in a short position you will lose, and if you do not want to experiment you leave in the stablecoin so that it maintains the value of the money and not leave everything to the volatility of the market. I know many who have BTC and when they go to sleep they convert everything to usdt, then the next day they buy usdt or the stablecoin again, of course this is a double-edged sword, because the next day it may have risen more.

superman184

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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.

Maybe your concerns are much different from mine. I'm more worried about the Fiat at the moment. If crypto continues to grow, there is a possibility that Fiat will be abandoned and become a stable coin as a replacement for Fiat. The security level of stable coins is much higher compared to Fiat. If you deposit large amounts of money in the bank, is there any guarantee that your money will be safe? If the defendants in the bank ran away and took all your money, would the state that gave the license to the bank pay all your money? The financial authorities limit you to keep a certain amount of money in the bank. If you save more than the specified amount, the financial authorities will not provide any guarantees.

beerlover

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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?

There will be absolutely no point on holding stable coins for any period of time. Probably in stead of holding fiats, you may prefer to hold stablecoin but it will be too risky as stablecoins are not regulated ones hence any problem may occur at any time. I am also making use of stablecoins for trading purposes as my local exchange is not having a fiat based trading pair for any cryptocurrency.

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Stable coins help us raise money safely. that's why i use Stable Coin. Specially USDT

You meant crowdfunding? I am sure not most people here are into such activities to use stablecoins. I guess, instead of fiats that you are using stablecoins to raise funds for your projects; yeah, we can use stablecoins anywhere we need to use dollars.

panukurap

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Waiting for stable coins for day trading is profitable. For now, if the market is not friendly, I can only hold it for a while. I wouldn't convert it to fiat at a time like this because no one knows what the next market development will be. It could be that the market suddenly rises, if I convert it to fiat I will be left behind at the moment. If what happens is that the market still stakes and I experience a loss, this is indeed a risk that I will experience. All things will not always be sweet, you also have to feel bitter every now and then.

lenovop-70

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I converted to stable to make it easy to make trading transactions. I am a daily trader in several major markets like Binance and other similar markets, if I convert to Fiat every time I make a trade, it will take a lot of time and cost. Moreover, during my experience, it is very safe to keep assets in stable coins like USDT and BUSD, there is no significant increase or decrease in the two stable coins above, so the OP doesn't have to worry about losing the value of their stable coin.

wajik-tempe

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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.

Don't worry too much especially if you hold top marketcap stable coins like USDT it will be okay it's just the same liek you hold another altcoins with high marketcap, it could gone anytime or un-pegged just like you worried about but it won't like that because it's already there for a long time and it used for a lot of people.
So for me personally holding stable coin is better compared to cash it out to bank account because it's require fee and we need more time to do that moreover if we want to buy coin again with the cashed out money.

arifteguhr

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Don't really understand what you're talking about, it's about you having a coin that has a graph that is not too big and not too high. you can see an Ethereum chart that you can follow or maybe you can buy TRX coins.

Some people are still too fond of coins or tokens that are very low in value and that is certainly not wrong as long as the coin or token is still very good, so they will not see expensive coins like ETH at this time even though it is also better than the coins which is still cheap at this time

letyouearn

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Converting crypto to stable coins is a fast and easy way to save your money when the market is dumping. Or they are useful if you are trading actively. Selling something for stable coins takes 5 seconds and no fees are being charged from you. Selling crypto for fiat money can be very slow and expensive.

TelolettOm

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In my opinion, the stable coin is the best pair to convert when I am doing trading. And we can find more pairs with certain stable coins in all exchanges than pairs with Bitcoin or other altcoins. Moreover, if we have converted the coins to stable coins, the value will not change drastically, it may be a little bit the same. So it is safer for trading. Additionally, a stable coin in certain exchanges can be the one that is available to convert to fiat on my bank accounts such as in Tokocrypto and Indodax as my local exchange in my country. I am sure many people will also think the same, this is not for investment maybe, but more to their utilities.

Lanatsa

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Quote from: Silberman on January 19, 2022, 06:21:06 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.

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.

In many countries it is still very difficult to sell your coins and then put that money in a bank account and then get back to the market, this is a process that can last days or even weeks, and whether you are a trader or investor this time frame is simply unacceptable, this is why stable coins exist, as people can enter and get out of any coin in a matter of minutes or even seconds, this also improves the liquidity of exchanges and coins, so on average stable coins are quite useful in this market whether we like it or not.

Don't know on where you do live on but I don't have any problems on buying out crypto in using up my card and do made out some conversions from fiat to crypto or crypto to fiat.

Well, this would vary on certain conditions because not all countries would really be having the same situation when it comes to this.Stable coins is useful when you do make out
active trades.You don't need to convert out from crypto to fiat actively.

It does vary on someones preference though because not all would really that much confident on putting it into stable coins.

Silberman

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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.

In many countries it is still very difficult to sell your coins and then put that money in a bank account and then get back to the market, this is a process that can last days or even weeks, and whether you are a trader or investor this time frame is simply unacceptable, this is why stable coins exist, as people can enter and get out of any coin in a matter of minutes or even seconds, this also improves the liquidity of exchanges and coins, so on average stable coins are quite useful in this market whether we like it or not.

TastyChillySauce00

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Exactly keeping the value of your investment is what stablecoins are mostly the main use case that it has.
The volatility of cryptocurrencies are quite high if you compare it with most of fiat, that’s why stablecoins are now widely used because it just make things more convenient.
I'm sure most of the traders who ever used stablecoins are using it just like a safe point where for example if you have your investment currently having rally, you should take profit and that in form of stablecoins so your investment won’t ever go down again.
It’s just short of final destination when your unrealized floating profit be finalized and realized eventually. If the ability and reserved fund makes you doubt with it and just stick to the DAI. that will be enough for you to fix all of your fear

tvplus006

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That's all there is to Stablecoin so stablecoins are only suitable for use when the market correction begins to arrive, for example like now and also in the past few days, besides that I don't think it is suitable to be used because Stablecoins have never increased much so they are not worth bringing into trading.

Many continue to hold stablecoins, instead of withdrawing their profit to fiat, since the deposit rates for stablecoins are higher than in traditional banks. And at the same time, you always have the opportunity to buy the coin you are interested in at a low price in case of an unexpected dump.

jatinkapadia

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Stable coins have many advantages..

It's non volatile or say very little in other currency
To reduce or create a fix transaction cost if it's been deployed on main net
Reduces time for transaction

abikobong

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the network fee maybe it is, but still, kind of defeats the purpose of a stable going unless you are sending high amounts all the time.

QueenVera

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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 hold stablecoin because of its easier to use to purchase other Cryptocurency when the market is experiencing a correction. Banks has procedure in releasing money and you might need an urgent purchase of your watched coin but due to the delay of the banks and its centralized system that could take you more time than just having a stablecoin in your wallet that within seconds or minutes you will be able to excute that transaction.

Stablecoin can also be stakes for stable returns and yes some merchant accept them for purchases. Most merchant convert their crypto transaction to stablecoin immediately the deal has been done and lastly stablecoin serve as a save heaven during market crash and I believe that is the main importance.

Valak

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Stablecoins are attractive because they seek to offer the best in cryptocurrency payment security or privacy, and the volatility-free stable valuation of fiat currencies.

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

~
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.

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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Quote from: ?? on ??

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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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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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.

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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.

K4C

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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.

indo1

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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.

asyakashi

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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.

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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Nothing lasts forever

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.

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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.

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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.

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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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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.

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."

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?

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

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Use chips.gg

Quote from: iv4n on January 08, 2022, 12:42:30 PM

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".

noorman0

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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.

WalkerIVIV

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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.

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.

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'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?

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.

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.

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Quote from: Normie_buys_crypto on January 08, 2022, 01:06:46 PM

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.

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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.

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.

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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?

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.

timerland

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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.

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.

Normie_buys_crypto

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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!

iv4n

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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!

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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.

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.

JohnBitCo

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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.

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.

Normie_buys_crypto

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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.

Topic: Why do you use stable coins? (Read 658 times)