Trader use stable coin to minimize lost stable coin like USDT have invariably fixed price so if you hedge your crypto in usdt then you are not going to profit when the price increase just as it is currently. All trading platforms have tools and options to minimize lost and this is reason why it is always advisable to always set stop loss function just in case the price go down due to market volatility
Basically, it is not just for minimizing your losses in bitcoin, it could be applied in all cryptocurrencies. Other than minimizing losses, it is also used to lock your profit, if you think that you already reached a profitable percentage, you can already sell your crypto to stable coins instead of directly converting it to fiats from centralized exchanges. Though for some reasons, I think the standard of value if we really believe in bitcoin is not any stable coins, most of the coins follow bitcoin, and it is Bitcoin that we need to consider to store our profits, because, in the future, the more bitcoin's we have, the more profit we can get and what if we sell to USDT or other stable coins and bitcoin's market price didn't become accessible again, it will be a hard decision for us whether to buy bitcoin just because we trusted stable coins over it.
