Bitcoin Forum

Well, we all know Tether has issues and many people say that USDC is much safer than USDT which is not true according to this research.
Although this tweet is few months old but it is a moment of concern. All of these coins USDT, and USDC and even BUSD are not safe. The Algorithmic stable coins like Dai can also lose their peg against the dollar in a crisis situation.

In this situation, what can be the best way to store our stable coins  ???

https://i.imgur.com/FzUbO4n.jpg
https://twitter.com/CryptoInsider23/status/1542027718677504002

This is why I never trust in anything that link with "centralization" because of the are scam or has poor security. If you mention the risk of holding DAI is, DAI can't survive during crisis situation, then explain to me which fiat money can survive during crisis situation? :D None!

Fiat also lose it's value when crisis happen, this is why DAI need a time to adjust with the current fiat price. Actually that's a risk of holding stable coin, but it has nothing to do with a centralization risk.

BITCOIN!

Dollar and dollar base stablecoins are just a medium of exchange not a place to store wealth. You store walth in commodities, stocks, real estate.

But to be honest I think its just a FUD. Stablecoins is a serious game with big money. You can't have better stable coin. Stable coin is stable coin. So the only way to convince custommers to use your is to FUD the other one.
The author claims that circle can't keep money in the bank without losing money...

We have seen how decentralized stable coins can lose their value although DAI is still safer but we never know what might happen.
We know how Tether has been rumored to fake its reserves and now the same is happening with USDC.
In this case one thing we can acknowledge is that holding stable coins is not a good choice.
So the ideal solution to this is don't hold stable coins at all. Directly buy bitcoin with fiat money and otherwise keep holding bitcoin or altcoins.

Yes, i agree to this part that buying bitcoin is a safer bet at least in the current bear season. Convert all your stablecoins in bitcoin and hold bitcoin. The more chances are bitcoin will rise from here or even if it goes further down, it will be for very short time.

The problem will arise, in the next bull season. At that moment, you will want to convert your money in stablecoins when bitcoin is at 50,000$, 100,000$, or 150,000$. At that time, it will not be a good idea to keep money in bitcoin. So we need a reliable stable coin before the end of the next bull cycle.

I don't use USDC, I use BUSD because most of me trade on Binance, but in the end, I don't trust anyone including BUSD, even though I'm using them daily. Everything is centralized, there is no such thing as safe, so don't compare, look at FTX they are always overrated and safe until crash. So don't compare which is better but use it wisely, don't keep it for too long, only use it when the need arises. Between stable coin and fiat, I would choose fiat.

CASH only!

If you are saving cash means literally you are losing every year approximately 5% of your saving as global average inflation rate for current times is around that. When we are talking about crypto stable coins are not safer to store value, we must need to remember government's cash are practically danger to our saving. If you prefer cash to store your wealth then I guess you may go risking your wealth even with anything as cash got guaranteed depression of 5% whereas most investment things got at least 10% chances for appreciations.

We do not have much options for the need of stable coin hence we need to depend on one of these. USDT is the first and long running hence we may assume it may last forever.

No stable coin is safe. The sooner people understand this the better it is for everyone. Stable coins require your trust to operate. You don’t need to trust anybody when using bitcoin. Stable coins are centralized, require your trust and these are against the ideals of crypto completely. Crypto itself is rock solid and can endure any attack but this, this is not a direct attack at crypto. These unbacked tokens artificially shoot up the crypto asset prices and that made everybody feel good but when these tokens disappear all the hell will break loose. The problem is, tether shouldn’t have existed in the first place.

There was UST, then got depeged, then HUSD, got depeged again, now we have USDC, USDT & BUSD as the other options. Many people converted their FIAT to stablecoins, just in case bitcoin or other coins falling, they can buy it with their stablecoins because its "stable".

Even if USDC got depeged, we still have BUSD & USDT, if BUSD depeged, we still have USDT, but if USDT depeged, we are done. No any stablecoin anymore should be trusted

Even with big peg these stablecoins arent really gonna make us safe. Yes in crypto world the importance of stablecoin are being valued at. But to be more safe is hold your actual fiat to be more precisely safer. In trading I think usdt is much better to use due to massive volume but this isnt decentralized as it can be. Frozen asset were recorded foe such accounts in the past. Means even at this point it can happen to anyone. Stablecoin like ust before is trusted and become a trash token now due to destabilisation of its system which could happen again to any of these.

I trust BUSD caused by has backed by the real money. I don't even trust DAI caused by it's only gimmick. Algorithmic stable token was BS. All of things in the crypto have the same issue.

You have no choice other than converting your stable token into the native coin like bitcoin but will you deal with the volatility in the native coin? This is the main question for you as you are feeling worried to hold stable token but you have no choice other than using it to keep your value from volatility.
It's better if you are waiting for CBDC to be launched and that will be the safe thing to keep your value stable

So far, all three are stable, but in my opinion, they are not reliable, don't wait for an incident to be alert, it's too late. They are all centralized coins and can crash or freeze our assets anytime. The influence of stablecoins on the market is vast but let's always be careful and take precautions because anything can happen, don't forget the death of UST.

So far i only heard about the issues with USDT with their funds and that they don't tell us what their reserves are and that we therefore can not really be sure, how those reserves look like and if they even exist at all. In that context it was always mentioned, that USDC was way more secure and reliable than USDT, because the company behind USDC is Coinbase which is based in the United States. That means that Coinbase obviously has to comply to US-american laws and standards and so far i always thought that they are pretty strict and therefore that Coinbase and USDC is audited and checked regularly. I always thought USDC really have enough funds to cover every USDC 1:1 with a real USD. I have to take a deeper look.

I think is only whenever they want to convert their coin before stablecoin could be used maybe when they seems the market is not stable just as the dip some weeks ago, holders could convert to USDC, USDT, BUSD, DAI and any other stable coin out there. Naturally investment are being left on bitcoin and with any other cryptocurrencies. All less the attack is being launched when there are much holders of USDC.
Have this in back of your mind, no stablecoin are reliable and trusted with 100 percent sure so any breakdown would likely occur that is why is best to hold reputable coin just as bitcoin.

Best advice, if everything is falling against the dollar then the best currency to hold in time of crisis is cash which will be the saving grace of the moment,  and if one wants to hold anything aside from cash then the best shout is bitcoin.
But that should be on a long term base, because even the bitcoin market is also affected by this current market crisis, USTD or other stablecoins can fall at any time since their algorithm is centralized the developer can take an exit at any time and everything will drop back to zero.

If there's no other option then I'd like to agree about cash, it's somewhere safe and there's no need to worry about with it.

But you still need to look at how's your economy doing then it should be bitcoin. If you just want to store wealth and value, cash and then look for some other assets where it might grow together with the inflation.

I guess we all have these issues with the stable coins and we need to be wary with all of them.

In my opinion USDT and USDC are not obviously completely safe, infact you hardly find a complete safe stablecoin now. But I see it as taking the one with the less poison.
Popularity wise I don’t think it gets better than USDT. I don’t know if there has been any complaints in the past about it. Most crypto-currency related services payment are don’t using it, so I would say it’s been the safest to me.

Well with the way the market is moving in the last couple of days and then stable coins also being one of those people claiming as not safe then so be it. I just have like a couple of hundreds of USDT not USDC, not that big so maybe I won't be affected as others when it collapse.

And with that we don't know which stable coin is good at this point because they are all vulnerable right now.

Specially about Algorithmic stable coins as the OP said, I guess it's more prone to collapse than stable coins.

If there’s another FUD about stable coins, we might not be able to break the resistance again and maybe we stay longer on this bear trend. There’s an on-going issue with USDT and yes, USDC is not safe either. The best thing to do right now is to buy Bitcoin and instead of buying stable coins, a big collapse might still happen and that could be the worst to happen. Let’s see how they will handle this and let’s see if they can survive.

For this reason,I don't keep my savings in just one stable.At the moment there are enough alternatives and you can choose any one.We all understand that no asset is 100% safe, but for now we have to use what we have.For the most part, of course,I try to store in bitcoin, but the market is very unstable.

I can't read sheets as well as others here, so you would know better than I do, so you guys should tell me if this is real or not. But even if we removed all of these, don't you think that it would be very very weird if USDC was doing good? I mean any stablecoin to be doing good? Isn't it clear that we are all giving our money to some people who are giving us some fake money and saying that they will back it up? Bitcoin at least has our own backing and we decide the price and if it goes down then it goes down, in stablecoin logic, there is a company that keeps it at 1 dollar exactly and we all believe them for some reason. Never trusted any stablecoin, nor will I ever trust.

Stablecoin is stablecoin. They are all centralized and being controlled, so this is the issue here, it's not decentralized so expect that there will be always a downside to it. Before there is some issue about Tether (USDT) that it's not 100% fully backed by fiat USD 1:1, I'm not sure if this is true or not but if that was true, it's very scary, that stablecoin could collapse in just any second, best example is UST, hours/days only became worthless.

We don't know how companies which launch stable coins back their coins with fiat currency at 1:1 ratio or less. They have reports but we can not believe those reports blindly.

I would like to cash out my Bitcoin or altcoins to have fiat currencies, USD. When I need to buy bitcoin or altcoins again, I use USD to buy USDT as a medium coin to buy Bitcoin and cryptocurrency.

I would not want to store all my capital in stable coin, not USDT or other stable coins. It is so risky. Cryptocurrency companies and their founders are degens and we should not put our capital at risk by believing them too much.

Well they say it is much safer because someone said it to change from USDT to USDC on Twitter, I read that Twitter message from Coinbase account tho although they only change it because it's zero fees not much safer. There's always a risk in this crypto industry and everyone has their own way to store their coins, just find what the best for you if you want to store it in stablecoins it's better that have good transparency or if want to store it in top coins then Bitcoin always be the choice.

So USDC, USDT, both is not safe anymore? So what stable coins are trusted today, nothing? Even BUSD and Binance exchange reserve is in hot seat now for its proof of reserve (https://twitter.com/mikealfred/status/1601959206239629320) so BUSD is also in danger, what if any moment this stables value become unstable looks like its too risky to hold stable now. 

Yeah, what an irony this is, usdc, usdt, busd, all other stablecoins are not safe, even fiat is not safe according to popular voice, so which one is safe? or should we all store with btc only, is this the answer to this problem? Although btc is not a stablecoin it seems to be the only asset among the numerous in the market you can trust.
At this point, it is very confusing what asset is trust worthy beside btc.

Actually there are many stable coin projects that are trying to be presented, maybe the popular ones today are 3 namely USDT, Busd and USDC, is the coin stable 100% certainly safe? Surely no one can guarantee, but what I know is that they have strong legality so that we can still trust with these stable coins.

That tweet is talking about shortage of $245 million and anyone who has been watching binance from its beginning days know the facts; that must be a FUD against a crypto giant to grab cheaper prices of all cryptos. Basically I am not a supporter of any stablecoin or exchange but suspecting binance for $245 millions does not sound realistic.

Stablecoins were not part of crypto space some 5 years back but now people are making use of it for many applications like P2P trading and bot trading hence I wish to have a problem-free stablecoins but we do get only corporate coins. A decentralized stablecoin must be a solution here (I know DAI claims themselves decentralized but that also another corporate shit).

What do you think is better: to lose 5% per year due to inflation or to risk losing all your savings?
More reliable than cash has not yet been invented. Of course, this depends on the country of residence, because in my country, cash can be quickly exchanged for cryptocurrency and vice versa, and this is not taxed.

USDT is still considered a major stablecoin company.  But the bad market situation and various unbelievable scam incidents create a confusion in our mind for everything.  So no coin is 100% trustworthy at present. So don't leave your entire fund on a single coin at this time.  The entire fund should be divided into several parts and saved . In this case USDC, BUSD, USDT no peg  are not 100% reliable

DAI would be a better choice, I think so, I had always store my stable assets in DAI. Most probably I had store my little amount in bitcoin, but I don't store it there for any profit, as when the bitcoin falls or goes up there would not be any affect on my small assets. I don't tell others to do, but this is my ways for storing assets.

In this case i simply said that Stablecoins are safe like usdt , busd ,usdc etc but i think not any thing safe because its a crypto not anyone know what are going tomorrow but many people save there fund in the form of Stablecoins so they easily save there fund but not anyone know that which Stablecoins are not safe usdc ect are the old coins and many years regularly people use that coins.

A better way of holding your assets in stablecoin is in my opinion simply bitcoin, and after holding it for a long term, bitcoin may give you some profit if it goes up at a larger scale. In another sense, it can give the holder some loss as well. The only possibility in my opinion would be DAI, we can still use it as a stablecoin.

I don't know if who says that USDC is much safer than USDT when both of them are the same (centralized) but I think the reason why they say that is because they never heard USDC have been involved in any anomalies but now that it have one here I guess their views about USDC are going to change a little. DAI is algorithmic but unlike other algo stable coins. DAI haven't depeg yet right after the crash of Luna and UST. We are also in a crisis right now and there are no reports that DAI have depegged.

I guess that is safe to assume that DAI is the most safest stable coin up to this date. The best way to store our stable coins is via a hardware wallet or offline wallet (E.g an old/unused computer). If online, then just pick a non-custodial wallet. Lastly, don't ever store coins inside a crypto exchange.

You can't trust CASH in times of high inflation across the globe. If you keep your money in cash you are already on the losing side. If you want to keep the money outside crypto, Gold may be a good choice but Fait currency is not a good option.



Who told that BUSD is 100% backed by real money. Binance's proof of reserves raises red flags: Report (https://cointelegraph.com/news/binance-s-proof-of-reserves-raises-red-flags-report). Once Binance faces any such issues, BUSD will be affected no matter what.

That is true, just because they are huge doesn't mean that they won't fall down. Bernie Madoff had a 50+ billion dollar hedge fund, turns out it was all a scam, or Enron was a huge company worth billions, turns out it was a scam.

Just because something is huge, doesn't mean that it is not a scam, and on top  of that even if something is not a scam, they could fail too, look at nokia and panasonic, they were huge at some point, gone after smart phone era started, this is why there is absolutely no way that you could guarantee something to go n just because it is big right now. USDT is the same, scam or not, it could always fail and we should be ready for it, or just put it on decentralized coins.

This article really aged well. USDC has weathered many storms, and obviously came through this particular issue unscathed, so maybe it is better than Tether(for now). But if you are looking for long term store of value why don't you split between USDC, USDT and BUSD?

Even though USDC is trying to show that its tokens have better security than USDT, but in fact, it is the same centralized stablecoin as Tether, and it is also subject to regulators. What kind of security and reliability can we talk about here? If you want better security and reliability than USDC and USDT, use DAI or stablecoins with similar security.

then I guess best course of action just diversify your wealth, even though realistically, every investment instrument has the risk of losing its value, but it's still better than just putting your money in one place, so that when there's accident like for the worst comes to worse just like UST you could still save some money so that you didn't really get affected that much, I think at this moment, there's always chance that the investments that you invested in, could literally turns into thin air.

None is safe, it is only a matter of when one is suitable for our trading pair. This is not for long-term holding, that's why I never use stable coins for my long term holding. But, if as long it is used for trading pairs in certain exchanges, Ima still using them. But, I am also aware enough that this is high risk. Everytime in the crypto currency moreover in centralized platforms, which are regulated and limited by certain laws, regulations, and institutions, may not be safe 100%, not recommended100% for us. But sometimes, we only can use them for a while, at least, we know when to stop using them in the right time.

At the moment (and in the foreseeable future) no centralized stablecoin is safe. Period. Unless you have no other options in or outside crypto, do not keep money in stablecoins for any amount of time beyond what you need the stablecoin for (trading at an exchange that doesn't accept fiat, paying for goods to a merchant that only accepts stablecoins, etc.). By keeping money in a centralized stablecoin you are getting the downsides of the traditional financial system (intermediaries can easily control and freeze your money) without any of the protections afforded by battle-tested regulations of that financial system (your money is not insured and if something goes really wrong, as it has several times already, your "dollars" are gonna be worth as much as the Zimbawean dollar (https://en.wikipedia.org/wiki/Zimbabwean_dollar#Hyperinflation)).

Now what I stated is a theoretical statement based on (IMO) a rational assessment of the pros and cons of stablecoins. However, if that has not convinced you, let's look at some examples. Starting with the biggest elephant in the room - Tether / USDT. Let's just check their Wikipedia page (https://en.wikipedia.org/wiki/Tether_(cryptocurrency)) for the thing that matters the most to any stablecoin holder - whether their stablecoins are backed by real US Dollars:


(I've specifically left the source numbers in to make a point that these statements were sourced from external publications)

If this is not giving you massive warning signs, I don't know what will. If you're looking for a more in depth perspective of what USDT is and who its run by, I'd recommend Youtuber Coffezilla's "Exposing Tether - Bitcoin's Biggest Secret (https://www.youtube.com/watch?v=-whuXHSL1Pg)" as a starting point. While I do find him a bit too clickbait'y in his style, the points he presents are solid and it's a great tl;dr, even if you're not interested in researching the topic further.

Moving over to Binance's BUSD, while it seems to be less risky than USDT (which is a very low bar), it's important to not just look at what BUSD is, but what Binance is. While it seems to be one of the largest, if not the largest, cryptocurrency exchange offering a product whose security relies on a strong regulatory environment, the company is established in the Cayman Islands (https://en.wikipedia.org/wiki/Binance), a well known financial offshore territory (https://en.wikipedia.org/wiki/Cayman_Islands). They did open a separate entity (Binance.US) for their US customers (after Binance was banned from operating in the US) "which nonetheless is banned in six states: Hawaii, Idaho, Louisiana, New York, Texas, and Vermont (https://en.wikipedia.org/wiki/Binance#United_States)". Furthermore, according to a Reuters special investigation "How Binance CEO and aides plotted to dodge regulators in U.S. and UK (https://www.reuters.com/investigates/special-report/fintech-crypto-binance-zhao/)", it seems like Binance isn't really a big fan with having to comply with government regulations, sometimes even (allegedly) through legally questionable means such as backdating documents intended to avoid new laws. Stepping away from all the regulation stuff, we have Binance's Binance Smart Chain, which the exchange seems position as part of decentralized finance in its marketing (e.g. Binance in its article "Binance and BNB Chain: What’s the Difference? (https://web.archive.org/web/20221213000650/https://www.binance.com/en/blog/ecosystem/binance-and-bnb-chain-whats-the-difference-6186229776062522437)" states that "BNB Chain was originally initiated by Binance but has since grown to become a community-driven, permissionless, and decentralized blockchain ecosystem.") yet, according to a Messari researcher (https://twitter.com/WilsonWithiam/status/1381420702918664194), it seems that Binance Smart Chain and its accompanying Binance Chain seem to be effectively centralized.

Now to be fair, it's indeed true that BUSD was founded by Binance in partnership with Paxos with Paxos holding the reserves (as per the their Wikipedia article), I'd still be skeptical as in large and complicated systems with a lot of moving parts, there's still ways those systems can collapse on their own, let alone if any malice is involved (e.g. something going wrong with the Binance issued Binance-Peg BUSD)

And now we've reached USDC. Ironically, of all the big centralized stablecoin players I consider USDC as the least questionable player. While I don't know the credibility of the claims that USDC is in trouble (as cited by OP), if those allegations are true, that should tell you everything you need to know about how trustworthy any stablecoin is, let alone the less reputable ones.

P.S. While some users might jump in and suggest DAI (or similar decentralized stablecoins) as alternatives, do keep in mind that there's been reports that more than half of DAI's collateral is comprised of USDC (https://insights.deribit.com/market-research/dai-is-now-60-backed-by-centralized-assets-what-does-that-mean/). So if there are any major centralized players, decentralized collateral-based stablecoins might be subject to similar pitfalls to their centralized counterparts. And if we were to turn to algorithmic stablecoins, I think most of us remember the UST death spiral.

P.P.S. If you want to keep a substantial amount of money in USDC or in any other stablecoin for those high (and usually completely unsustainable and / or incredibly risky) returns in an attempt to avoid inflation slowly eroding your assets, I'd recommend checking this post of mine (https://bitcointalk.org/index.php?topic=5216899.msg53589418#msg53589418) out for ideas.

Do you know that recently binance has stop the withdrawals of USDC? I know they have given a proper reason to it but again i dont feel comfortable with any of these stable coins. Previously i thought BUSD might be the better of these stable coins but the recent Binance fud change my mind.

What i hope that none of these stable coin collapses, as if it happens it will be very bad for the overall crypto market.

But they resumed the withdrawal after 8 hours, and the CEO of Binance mentioned the reason for that action they took, but if you feel panic and uncomfortable, you can divide your funds into other safe stablecoins. I have been reading negative news about USDT for days and today I see that people are posting FUD about USDC even though Changpeng Zhao tried to calm investors' fears via his Twitter account but to no avail. For me, I put the largest part of my capital in BUSD and put the other parts of my capital in USDT and USDC in anticipation of anything happening so that my loss is not huge, so be assured and divide your capital and do not put it all in one stablecoin, this is the perfect solution.

Which stablecoin is safe guys? Whenever there is a Bull market, Tether is printed and launched. This makes me insecure. Who prints the Erc20-based Tether, for example? That means it's a central situation. Isn't it against the logic of Blockchain? I am currently doing my transactions with Busd. Already, CZ is delisting some trading pairs to strengthen Busd, while doing nothing to trades with Busd. Is there a stable coin that you call strong or reliable? For example, could Dai be one of them?

If there is a distrust of stablecoins, it is necessary to leave only the part that is necessary for trading, and convert the remaining stablecoins into fiat. Converting to fiat and back to stablecoin takes very little time and commission, but it will bring you confidence in the future.

It seems to me that this is far from the way you write!! I believe that each token is assigned one dollar! Otherwise, it's all weird! Even each erc token has some value behind it, otherwise where would the volume come from?? If nothing is assigned to it, it means that it has no value in itself and it has no volume! I think it's a misconception that Tether is not pegged to the dollar!

So far, withdrawals on Binance have been no problem, even though the withdrawal amount is estimated at around 6 billion, and everything is very smooth.
In my opinion, there is no need to hold various stablecoins because once they are centralized nothing is safe, and holding them on centralized exchanges is already unsafe.
Currently, converting from fiat to stablecoins is relatively easy, and if we do not need to use that money, it is safer to change to fiat than to hold stablecoins in fear.

There are several ways to keep your stable coins safe, depending on your preferences and needs. First, you can store your stable coins in a trusted wallet such as a hardware wallet or a secure software wallet. This will guarantee that your stable coins are not accessible to unwanted third parties. Secondly, you can store your stable coins on regulated and trusted exchanges, which have a good security system in place to protect their customers' assets. However, it also carries a higher risk as exchanges can experience attacks or theft. So, it's best to consider carefully before deciding on the best way to keep your coins stable.

the thing I see clearly is how binance has a stable coin that is BUSD. i think it would be great to divert our assets in BUSD as it is clear in its reserves with binance from any stable coin. I think that's enough of how we should trust it as a safe stable coin.

A centralized intermediaries are a point of failure. Even a decentralized stable coin is prone to falls due to the underlying system, take the example of UST. The flaw might be hidden for many people who do not dig deeper into whether such system is able to cope with the pressure of the market. I'm afraid a big hit on a stablecoin would make the cryptocurrency market takes a downturn, we know how DeFi market relies on the stablecoin.

The point is most stable coins highly rely upon a currency that is managed by centralized entities, this specifies a scope of failure to the company that manages the token. Personally, as in "stable" means, I'm sure Bitcoin is stable enough for me. Nevertheless, I understand those who seek less volatility or safely manage their funds.

None of the current crypto is safe except Bitcoin. As long as the crypto is still changing both in terms of supply, from the PoW system to PoS and so on, then the crypto is not safe. This means that there is still a possibility to do something outside of our instincts, or there is still a possibility to be stopped by the running system. Likewise with the current stable coins that we consider safe with a value equivalent to Fiat. If the addition of the supply continues and suddenly they buy up most of the Bitcoin with the stable coins they are developing, then the price of Bitcoin will increase and the stable coins will drop because the amount of supply exceeds the needs of the exchange.

And what category of people do you think bitcoin is safe for? If you say bitcoin is safe for everyone, that's not quite right. Bitcoin can be dangerous for short-term investors because it is volatile. Many investors consider bitcoin a risky asset. A risky asset cannot be safe. So it's worth rephrasing your definition. Bitcoin is more reliable than other altcoins.

This issue of safety in stable coin create lots of fears in cryptocurrency investors since the time of Terra UST depeg and Luna crash. The only stable coins mostly trusted now are BUSD and USDT. And I doubt either of them can also survive depeg attack if every cryptocurrency stakeholders do not come together to defend them.

Incorrect, all stable coins are centralized, so it is also not safe if you store them in a non-custodial wallet. Centralization means they are controlled by a 3rd party, so even if you keep them in your personal wallet, they can still freeze your assets. For me, there is no such thing as 100% safe in this market, not even bitcoin. Investing in cryptocurrencies means that we have to take risks from the start, so invest only the money you can lose.

We can't trust anything that's centralized these days as your funds could easily get lost or stolen in a blink of an eye. There's a reason why Satoshi made Bitcoin a cryptocurrency independent of third-parties. Adding centralization (single point of failure) will bring us back to the failures of banks. I'd only trust decentralized stablecoins that are collaterized by other crypto assets. Of course, a huge downfall in crypto market prices could leave with you nothing in return. But it's better to "hodl" a decentralized stablecoin whose keys you control than a centralized one.

To be on the safe side, just cash out your crypto to Fiat and you'll never have to worry about losing your money ever again. No one knows when disaster strikes, so it's best to be prepared just in case. Just my opinion :)

When talking about price fluctuations, of course all crypto assets are insecure, because they measure changes in value based on fiat values. When investors invest, of course they think about how far the project can survive.
Talking about crypto with various kinds of changes that occur in crypto, the SEC always handles, if there is a fundamental violation of the crypto, then the SEC sanctions apply. Can these sanctions apply to Bitcoin? Of course not.
Why do I say others are not safe, while Bitcoin is safe. Because it is clear who owns all other crypto, if it is not the owner who commits fraud, of course other parties will do something detrimental to the crypto project.

Though i don’t need to use Binance Stable Coin (BUSD) but i little bit trust it because of Binance exchange but now i don’t believe any stable coin especially centralized stable coins. Spreading a lot of FUD in BNB after collapsed FTT, So i think you also shouldn’t considering 100% safe in stable coins even BUSD.

Not even binance can get my 100% trust since any of those stable coin has possibilities to collapsed so better be more careful on holding it and always follow some crypto medias or even became more active here to know the latest updates about those coins. If there's controversy happening for sure there's someone will keep us an update regarding on current situation.

I would not be surprised if in the near future, the share of stablecoins in the crypto market will fall dramatically, and many banks that cooperate with these crypto projects will either close or stop servicing accounts that have cash collateral on them altogether. The era of CBDCs, the dreaded state-controlled tokens, is coming. These are even worse than stablecoins, and have absolutely nothing to do with real cryptocurrencies. States and banks will push this garbage into the crypto industry in every way they can.

Cryptocurrency is risky but with additional presence of stable coins, a trader can easily convert most of his crypto assets to stable coins whenever there's bear in the market. Stable coins is safe during the period of bull season, and there's clear difference between USDC and USDT, because I've seen situations were they're classified as the same thing. Stable coins are general in the market with usage from top exchanges and countries. USDC is a stable coin but over the past months, we experiencing issues concerning the stable coin about inflation.

I think while remaining vigilant in the cryptocurrency market, it is important to approach claims like "USDC is not safe" with caution and scepticism. It is true that stablecoins like USDT and USDC are centralized and may have regulatory or operational risks, but they are backed by reserves and have undergone various audits to ensure their stability. On the subject of storing stablecoins, It is common for users to use reputable and secure exchanges or wallets that have a good reputation for security and transparency.

Stablecoins are useful in any market and at all times. Converting profits into stablecoins is not always wise, because some profits are better converted into fiat and withdrawn from the cryptocurrency sector, thereby diversifying your portfolio and creating a safety cushion. Although fiat money is constantly depreciating, keeping all your capital in cryptocurrencies is just as risky, so many traders constantly forget that their profits should sometimes be fixed in their real wallet, not just in a virtual one.

Stablecoins proved to be a "failed experiment". They will eventually be replaced by CBDCs as governments push their agenda of a "Global Reset". People should stay away from stablecoins after what happened with Terra's UST stablecoin and USDC + DAIq. They simply cannot be trusted anymore. Not even Tether (USDT) with its shady practices. You're better off turning your crypto into real cash for complete peace of mind.

The future lies on decentralized cryptocurrencies that are independent from the current banking system. Not stablecoins that can fail or can be easily manipulated at will. Who knows how long does USDC or any other stablecoin has before they become history? Just my opinion :)

When it comes to storing stablecoins, it is important to consider several factors. First, you should choose a reliable exchange or platform on which you will store your funds. It is important to study their security policy and regulation, as well as evaluate the reputation of the platform in the cryptocurrency community.
Secondly, decentralized stablecoins such as Dai or UST can be used, which are based on smart contracts and do not have a central issuer, which makes them more resistant to external factors.

I have seen this news a long time ago and the tweet is a few months old, it seems to me nothing more than rumours.But I feel safer in BUSD than usdc.  I always select BUSD, USDT as stable coins.Everything is centralized in cryptocurrency, so there is no such thing as safe, so it is difficult to judge good or bad. As stable coins are not safe, Bitcoin is very safe as an alternative.Also if you are a Binance user you can rely on bnb coins.BNB Coin is currently one of the most trusted.

Disagree. USDT has proven to be quite resilient, despite being buried many times, but it has survived all the bear markets and major cryptocurrency crashes with dignity.


From CBDC will need to stay as far away as possible, because it is a parody of cryptocurrencies.


UST turned out to be a failed Stablecoin because its algorithmic model was questionable from the beginning. The USDC and DAI were in de-peg for only a few days. Unless you are a short-term speculator, you would barely notice this de-peg of the dollar.

despite all the rumour and the fact that USDC as stablecoin are having fud when it lost some of its value, it could regain back easily, stablecoin that have real reserve doesn't lie if the value decrease someone could just make some profit off the margin because they know it's truly backed by real money, so therefore I think stablecoin in general are still safe.

it is still safe, but i'm definitely gonna choose BUSD anyday if I were to choose, simply for the simple fact that it got binance backing it up for all I know they've been consistent in revealing their reserves in which somehow gow some assurance that there's real money backing it up otherwise i'd stay with USDT with the fact that it's trusted since long time ago.

I am pretty sure that rumor or not, when you give your money to someone for fake dollar, that doesn't really feel safe at all. If you gave me a dollar and I tell you that you can get it back anytime you want, would you trust me?

You wouldn't, but you do trust these guys, I am not saying I am as trustworthy as them, of course you can trust them more than you trust me that's true but does it even matter? Why should you trust anyone? Is that a requirement. I have no money in stablecoins right now, and that means I don't have to trust anyone at all, so if you have that type of option, why would you not pick that instead? Wouldn't that make more sense to you in the end?

Investing in itself is a risky business and involves some degree of loss of invested funds. Here you always need to keep your finger on the pulse and control the process constantly. And with a high degree of probability I can tell you that a 100% guarantee does not exist in principle. Security in investments is a fragile thing and, as they say, if you knew the buyback, you would be a millionaire

If someone prefer to hold USDT,USDC or whatever stable coin they prefer then it should be only for a short time instead of holding it for a long time or for long term. The obvious choice to store your money is to choose fiat. The tweet is on 2022 and yeah the tweet really is months old or almost 9 months.

That is true. USDT hasn't lost its peg despite the recent turmoil surrounding the banking system and the crypto market itself. I really hope it stays like that forever. Otherwise, everything achieved by Tether so far would be nothing but lost. Let's see what happens in the long run, as strict regulations enter the industry. ;)



It's a good thing the peg of both USDC and DAI was restored. Otherwise, the reputation of these stablecoins would've been destroyed already. Circle deciding to redeem USDC for $1 despite the de-peg, was a brilliant move. It helps restore confidence among investors and traders alike. If I only knew USDC and DAI were going to go back up, I would've bought the dip already.

I think the next stablecoin that will fail is USDD because it's only backed by algorithms. Just like UST, and USDN failed in the past. Only collaterized stablecoins will survive because they're backed by real USD reserves. Maybe developers will improve algorithmic stablecoins until they become ultimate perfection?  ::)

true, buying bitcoin and altcoins is the right decision because stable coins are too risky if they are stored on exchanges there will be many things that happen we can choose usdc tera as an example

I think you need to read this thread one more time because it's not a matter of investment risk, after all nobody invests in stable coins  :P
This thread is more focused on discussing which stable coins are the safest because after the UST case we really have to choose the safest stable coins. so please share your experience using stable coins  :)

It seems to me that USDT has become as important to the world of stablecoins as bitcoin is to the entire crypto industry. If USDT collapses, most likely the entire stablecoin industry will collapse and the market will have to be rebuilt somehow. It would be terrible if that is what is planned to happen, so that CBDC will take a niche in the crypto market instead of stablecoin. States can take the harshest steps just to make their product in demand.

In my opinion, USDC and USDT are still very safe, the latest news from USDC is very sad because USDC was deleted on the Binance exchange,
and maybe that's the beginning of Fud entering USDC, since the Terra Luna incident has made us aware of stable coins,
but don't worry USDC, BUSD and USDT I think these three stable coins can be a place for you to keep in safe.

That's the approach that people had at the start and that's why we are talking about it today. When USDT first started, for some reason or another, people said that that's fine and they started giving their money to them, after a while it reached billions and it looked more legit than anything else. After all, why would something worth billions be a scam, it has never happened before!

Obviously we are talking about a situation that is a lot more complex that then and reality is that it can become a "scam" or simply fail any day. We wouldn't know about it and there is no guarantee so that is why I agree that we shouldn't trust any of them neither, it just doesn't make sense.

I really thought that stable coin was really safe back then, but not until I saw how it crumbled because of some issues. Apparently, stable coins are not immune to volatility (they could even drop). So, I'm personally confused. I thought stable coins were a really good idea to keep our money as secure as fiat. Those problems faced by stable coins back then finally opened my eyes to the fact that nothing is really safe in the crypto world, and it's not a replacement for how you can keep your fiat for the purpose of storing. It's just a tool to do your shopping for your crypto assets. Don't ever keep your money in large amounts in stable coins again. I think I can say that Bitcoin is the safest choice for now, even though we can't depend on it 100%.

In my opinion, most stablecoins are not safe, but myself use USDT if I want to hold stablecoin, although in my opinion USDT is also not necessarily safe, but at least USDT is safer than other stablecoins, therefore if you want to use stablecoins, then I suggest you to use USDT rather than other stablecoins (including USDC).

I always thinks that most stablecoin just as safe as bank, they could be collapsing for many reasons, but in general they are reliable enough that I'd say saving wealth using them is still relevant.
but just don't keep for too long, always withdraw to fiat if you think you don't want lose your investment.

I think some critics argue that the centralized nature of stablecoins runs counter to the decentralized ethos of cryptocurrencies, which is one of the key tenets that attracts many investors to the space. Like other financial products, stablecoins are also subject to regulatory risk. Governments and regulatory agencies around the world are still grappling with how to classify and regulate cryptocurrencies, and there is always the risk of sudden regulatory changes that could impact the value and stability of stablecoins.

The best way to store stablecoins depends on your personal needs and preferences. Look for a platform with a track record of security and a commitment to keeping customer funds safe and consider using a cold storage option for your stablecoins. Diversifying your coin holdings across one platform helps reduce risk. failed or compromised.

Belief in USDC swayed a little in this stablecoin when Luna fell. In general, it seems strange to me that the USDC does not equal exactly 1 dollar. It also concerns other similar stables. All explanations found on the forums do not look very justified. I think that USDC can be completely cancelled as a stablecoin with a significant market drawdown.

It's interesting to read posts like this on a forum about cryptocurrencies, which were created specifically to keep people from using banks, i.e. not trusting money to a third party, which is a bank. Yes, you are right, stablecoins are like a bank, because you trust your money to someone who can block it at any time and not return it to you, citing some piece of paper that says you are a criminal or something like that. So stablecoins, like banks, are not safe.

One option to consider is to store stablecoins in a hardware wallet like Ledger or Trezor. These wallets offer a high level of security and protect your coins from potential hacks and cyber attacks. It is important to make sure that the hardware wallet supports the specific stablecoin you are looking to store.

If I take what the OP is talking about, they are not talking about a hack, because USDC can be stored in a different wallet. But they are worried about losing value against the dollar. Like the drop in the value of USDC to 0.9 USD last March.

It is difficult to name which hardware wallets do not support USDC or USDT. Another problem is that your tokens may be blocked or you may be required to go through the KUS procedure at any time in order to continue using the tokens.
I advise everyone to study this
Stablecoins and Blacklists
https://bitcointalk.org/index.php?topic=5247581

I keep saying this, that in as much as the cryptocurrency industry is concerned, nothing is really safe in this industry. Both the investment in Bitcoin, the ones in Altcoins and the one in stable coins. No one is 100% guaranteed to be safe. So you have to apply the idea of diversification, knowing that everything cannot fail at the same time. If you refuse to use cash that you will lose some percentage of your money because of inflation, then split your portfolio among these stable coins. There is no how three of these stable coins will fail simultaneously. Could this be a good idea?

If the stablecoin you're holding goes to zero, then you're doomed. Why would I want the best security for my stablecoin holdings if they will eventually fade away into oblivion? USDC lost its peg a few months ago due to the US banking crisis. It went back up because the issuing company (Circle) used its reserves to honor the $1 peg. If something worse happens, then you can say bye-bye to the stablecoin for good. Nothing is guaranteed to last forever, anyways. Not even Tether (USDT) is safe.

If a stablecoin is not backed by the government, don't count on it as a reliable medium of exchange. I think CBDCs will eventually prevail, leaving stablecoins behind in the dust. With strong regulations against the crypto/Blockchain industry, anything can be expected. Just my opinion :)

Since CBDC will be issued by different countries, they cannot be equal in their reliability. It's like comparing the American dollar with the Nigerian naira. In this case, the digital naira may turn out to be quite unreliable CBDC in relation to the stablecoin, which will be backed by the US dollar.

yes, I agree with you that in a crisis situation everything will lose value, be it crypto or fiat, because of the crisis conditions that have changed various circumstances for the worse. so all have their respective risks in investment. and if you don't dare to take a risk then it's better to back off. and until now all stable coins are still in a safe condition.

However, look at how the other known stablecoins behaved compared to USDT. USDT performed better than other coins during the market crash of 2022 and during the de-peg of USDC in 2023. No matter how they bury it, it shows in practice that it is the best, even better than DAI, which has been a complete disappointment this year. USDT proves once again that it is much more reliable than other stablecoins, no matter what great models they have for securing their reserves.

I'm curious to know how USDT managed to retain its peg even during the US banking crisis in March. Maybe it's because the issuer of the stablecoin has USD reserves on muliple banks spread throughout the world? Or maybe it's artificially "pumping" USDT's market price to keep it at $1? Whatever the issuing company is doing will be revealed in the long run. If USDT remains valued at $1 forever, then I don't see why you should avoid it in the first place.

Like it or not, regulations are coming in. Let's see if Tether will ultimately comply, or fall behind in the dust as other stablecoins take the lead. Just my opinion :)

I personally probably won't save my assets to any stablecoin because it's the same as centralized banknotes, they're all scams in my personal view. I prefer to keep my assets in bitcoin with a cold wallet like trezor or safepal wallet because it's 100% full, we control what's more, bitcoin is limited to only 21 million coins in the world, the nature of fix can't be added anymore

There are no centralized stablecoins that are safe, they are even worse because the rate at which these entities track your wallet is worse than that of the normal banks, people will argue that they bring liquidity and reduce barriers of entry but the risk of using them outweigh the reward, my concern is why are these DEXes making USDC their major stablecoin, they must have been bought or stack ignorance on their path

I don't rule out the possibility that this price was drawn, that is, the peg was theoretical, and the rest was done by market makers to save the price from collapse. We know that most of the USDT reserves are scattered in all sorts of securities and indices, not in the fiat currency itself, so this may have some effect on similar events you mention as an example. I'm sure the big exchange players are behind the USDT price and they support the asset in every way they can as long as it benefits them in their trades.

DEXs have no other choice, especially when even the so-called decentralized stablecoins (like DAI) have USD reserves on a bank. Everything is centralized, except algorithmic stablecoins (although they're also subject to failure). There's no reason to be concerned about this, since stablecoins are just "experimental versions" of digital Fiat currencies. You get what you pay for.

If you want to be safe, just sell your crypto for cash. No need to convert to a stablecoin unless you're day trading or want to stake on "De-Fi" platforms. Government regulations will become stricter, so there's hope stablecoin issuers will take more responsibility against customer losses in the future. Maybe stablecoins will get to live alongside CBDCs for generations? Just my thoughts ;D

This is totally my personal opinion about USDC stable coin many time many people’s confused what is the future USDC stable coin. Actually stable coin means USDC,USDT,BUSD Etc all Above the price around $1 and usdc price already huge fall and many people’s not happy with usdc i hope USDT and BUSD better for stable coin.

In my opinion Stablecoins are bullshit and we may as well get rid of these scams with the rest of the dirty shit that went down recently. It will help to sanitize the crypto space which became 95% scam in the last several years.

only usdt is stablecoin still maintain security on their system, USDT is currently one of the most widely adopted stablecoins in the cryptocurrency ecosystem. It is supported by numerous cryptocurrency exchanges and used for trading, liquidity provision, and as a base pair for various trading pairs. USDT carries counterparty risk. Users are relying on the issuer's ability to maintain the peg to the US dollar and manage the reserves. It's essential to assess the reputation, track record, and regulatory compliance of the issuer when considering the stability and safety of USDT. Which is USDT more better than USDC and other stablecoins

Most stablecoins are centralized, so yes, it may not be worth your time and effort investing into them for the long haul. Even decentralized ones like DAI have USD reserves on a bank (which makes them partially-centralized). Any pressure from the US government in the long run could put well-known stablecoins at risk. Nothing is guaranteed to last forever, anyways.

Instead of stablecoins, why not consider cashing out for Fiat (USD)? You'd avoid losing all of your money if the stablecoin loses its peg in the long run. What will truly last are decentralized cryptocurrencies such as Bitcoin and Ethereum. When CBDCs come in, you can say goodbye to stablecoins for good. Just my thoughts ;D

Some stablecoins are just bullshit, but certainly not all of them. In my opinion, USDT, USDC, BUSD are still safe until now, although there are still risks, such as UST, which will eventually become useless due to the LUNA incident.
now even we still need stablecoins for Bitcoin trading pairs and that can't be denied anymore. without a Stablecoin pair you will not trade well.

What the poor security system that's why won’t believe usdc. Hy your money only safe in your hand with home because bank statement can hack anytime. Crypto not safe your money even here you can earn money from spend your hand cash. So Don't hold long tram even just buy dip and sold profits that's feeling enjoy. Investment means your assets in third person hand and they can cheating anytime.

In the centralization system, these all things could happen, and it is normal. As I would say that stable coins often should be used in USDT, Or BUSD pair. Mostly people uses these two coins, and very little bit use of the DAI coin now a days. Which is a risk.

Wll I think it is safe but now we can earn more interest if we stake it on Coinbase. We will now be able to get 5 percent.   
On June 15 the interest rate changed from 2 percent to 4 percent. This was because the sec did not consider the stablecoin a unregistered security.
https://cryptoslate.com/coinbase-raises-usdc-interest-rate-to-5/

while USDC may have a more positive reputation than USDT, no stablecoin is entirely risk-free. The best way to store your stablecoins depends on your risk tolerance and your confidence in the stability of the coin and the platform you choose. It's crucial to stay informed and periodically reassess your storage strategy as the cryptocurrency landscape evolves.

Interest rates are good. But you should keep in mind that USDC is still a centralized stablecoin. There's no guarantee it will retain its USD peg forever. At least, it's a safer bet than going all in Tether (USDT). This last stablecoin had shady practices from the start (new units are created at will, the issuer is unable to prove it actually has the USD in its reserves, etc).

Its competitor (USD Coin) has managed to do pretty well in the midst of time. When several US banks collapsed during early 2023, USDC lost its peg. However, the issuer (Circle, Inc.) quickly used company funds to remediate the situation and make investors "whole again". That brought confidence into the stablecoin, leading it to where it is right now. With Coinbase behind it, I think it's going to last for quite a long time. Who knows if USDC beats USDT as the leading stablecoin in the crypto market sometime in the future? Just my thoughts ;D

I would say that all stable coins are centralized. Centralization is not always about someone controlling the issuance or the wallets of other users. Centralization can be in the issuing bank, the various pledges or securities that are involved in supporting the stable price of the stablecoin. When one of these factors is disconnected, the stablecoin often loses its peg to the dollar.

That is not really that bad to be fair, I think it is quite possible to make enough money from this to live off it if you have enough money. Assuming that 1k is good enough for someone to live in most nations, we could say that yearly 12k is good enough to make and live, and if 12k is 5% of what you need to put in, that means 12x20 is the result you get, which is 240k dollars.

So, if you put in 240k dollars in USDC at Coinbase to get return, that would result with 12k a year return, which would be 1k per month and you can live off that. I know that 240k is a lot for many people, but in the crypto world that's not impossible to reach neither, it should be considered that it could end up with something quite good.

I agree with you. All three stable coins are trustworthy. At least I didn't find any negative news about these three coins. And it is true that stable coins cannot be separated in crypto transactions because trading pairs with Bitcoin and altcoins are still very effective. But I will not store a lot of my assets in stable coins because as OP has started, stable coins are very risky for inflation if they face a crisis like FIAT money.