Are stablecoins a definite solution against a bear market?

[cassavachips]

Obviously a stable coin will be very useful and is used by many people to protect the value of assets in a market situation like this, if the exchange does not have to turn into fiat then a stable coin is an alternative to seek protection from a market decline

[Obito]

I don't think so, no. Bear market is quite a good spot for investors to buy loads of crypto for it to stock, considering the fact that halving will happen next year, and we are close to it. Anyway, for practical use of it you can store your holdings into stable coins when you knew, or just see that market is not in good shape, and will go down sooner or later, otherwise it is not.

[Whilemost]

Stablecoins are a good solution against the bear market. It is a definite solution to preserve one's investments.

[pixie85]

Stablecoins are a good solution against the bear market. It is a definite solution to preserve one's investments.

I don't agree. Stablecoins can be created out of thin air and we all know that the most popular stablecoin tether lied about being pegged 1:1 to the dollar. This means that stablecoins can start fake pumps by increasing the supply of a stablecoin and then buying real coins with it. they can do more harm than good for the crypto space.

[Pham_Kinh_Kong]

My current view is that stablecoins are doing better against the bear market. This scary bear market has lasted so long. We have to find a solution against it like stablecoins.

[luckyflop]

Yes, stablecoins like USDT will help you to be safe and stable in the bear market just like it is now. You will not need to worry when the price of BTC and altcoin collapses and are always ready to buy BTC and altcoin at the best price possible. I myself have been holding stablecoins since October until now, it is not the time to shop in this bear market.

[spadormie]

It's not a definite solution to bear. It's just a safe haven to me. And whenever I wanted my coins to be safe, I switch to stable coins. It's just a precautionary measures for you not to lose much during bear. It couldn't possibly get your holdings high since it's bear.

[Tipstar]

Stable coins are a good tool to limit loss for a trader and they are a solution against both bull and bear market. Large fluctuation of price of bitcoin in any direction would increase the volume of Stablecoin trading. This also helps maintain the price of bitcoin less volatile.

[ðºÞæ]

It's not a definite solution to bear. It's just a safe haven to me. And whenever I wanted my coins to be safe, I switch to stable coins. It's just a precautionary measures for you not to lose much during bear. It couldn't possibly get your holdings high since it's bear.

When i want my coins save its triple backup password protected (paper) steelwallet. Each there own.
In the long run stablecoins are a guaranteed value loss, noone can save or retire on stablecoins.

[biddicoin]

Stable coin is a way to survive in this bearish market, we can sell our coins or tokens to stable coins so it wouldnt depreciate more.
But there is other trick to not only survive but also 'fight' in this bearish market, that's "short trading"
bearish market is suitable for short trading, it can earn profit even when market goes down
But, it is not easy as spot trading, learn more how to do it.

[oscarftw]

In a dreaded bear market that's lasts a long time, do you think that stablecoins are the definite solution for preserving one's investments?

So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.

What are your thoughts?

Yes, I'm thinking only stablecoin can preserve your investment, because if you cash out that will make you another cost. Almost 8 stablecoin, why you think this is few to preserve your money. Who are people invest in cryptocurrency they could sell some coin but finally they can't leave cryptocurrency, this reason there has low chances to turn out extremely risky.

[Bonwin]

Irrespective of what might happen, whoever is into crypto should know or is expected to understand the risks behind it. If stable coin is converted mainly to coins like Btc during the bear market, it might worth it, if such investor is in for long term,but those who want immediate profit might miss it.

[RussiaUkraineTranslation]

Eventually CBDCs will replace stable coins.

[itos84]

Stable coins are good if you like trading. If there are bad days for trading or want to go on vacations and won't do trading for some time, you can put your funds in stable coins and have a peace of mind that it won't crash while you are sleeping or going to the beach.

[yulionoo]

I think stable coins are good for saving our money after we sell and profit from crypto trading. by storing money in stable coins we don't need to worry about losing money. and we can also easily buy altcoin again after altcoin has decreased. but I don't think stable coins are the solution in the bear market. in my opinion the best decision when the bear market is to stay and hold.

[TastyChillySauce00]

My current view is that stablecoins are doing better against the bear market. This scary bear market has lasted so long. We have to find a solution against it like stablecoins.

Doing better I guess is not the right word for stablecoin but instead just doing fine. All these stablecoins literally perform the same in term of price due to backed up by the reserved fund and bear market is only for decentralized crypto with no backup whatsoever. Even if the whole crypto market crumbles resulting in 99% lost of all the crypto value if stablecoin still has the reserved fund it will still hold the value which equal to the reserved fund and won't bear any effect from the bearish market.

[Sithara007]

Stablecoins are a good solution against the bear market. It is a definite solution to preserve one's investments.

I don't agree. Stablecoins can be created out of thin air and we all know that the most popular stablecoin tether lied about being pegged 1:1 to the dollar. This means that stablecoins can start fake pumps by increasing the supply of a stablecoin and then buying real coins with it. they can do more harm than good for the crypto space.

Even if they are backed up by real assets at 1:1 ratio, there is no guarantee that this backup will remain unchanged in the long-term. What happened to Tether is a good example. Initially, it was backed up by real assets at a near 100% level. But then, they extended a line of credit to the Bitfinex exchange without anyone's knowledge, which reduced the backup from 100% to somewhere around 74%. And this is what happens when we trust unreliable third parties with our hard earned money.

[crossabdd]

Basically, stable coin is very helpful. and safe from fluctuations. I think stable coins are good for securing assets in crypto. as you said that the market is in a bearish pattern, and makes many crypto asset holders (other than stable coins) disappointed. the best step is to secure a stable coin and convert it back to crypto when it is at the lowest price. because if moving assets on real money, it will take a long time when the transaction. especially when pulling back from banks to exchange crypto with large funds.

[Abiky]

Stablecoins are a godsend. It was only a matter of time until a system such as Tethers would be made. Stablecoins really make day trading so much easier. Trading with coin pairs against a stable coin works exceptionally well when your trading with bots. The price of the stablcoins can waiver sometimes though, losing a few cents from it's original position but overall your balance remains utterly stable. I didn't get serious about trading until stablecoins became the normal thing.

Everything about stablecoins is great, if they're able to maintain their value of $1 USD per coin. But knowing that the crypto market is still illiquid these days, stablecoins might experience small fluctuations in price at times. The best-performing stablecoins in a bear market are those which are backed by USD reserves instead of an algorithm. Tether, Gemini Dollars, and Binance USD fit the bill nicely. Others like bitUSD and DAI may be doomed to failure in the future, as they're not truly backed by a USD reserve (as far as I'm aware). If stablecoins prove to perform as intended, they could be a safe-haven for traders and investors alike.

With many services providing attractive interest rates for stablecoin lenders, I believe that these digital assets will be here to stay for a long time. The only issue though, would be regulation. If governments impose strict regulations against stablecoins, then we'll see the number of coins available on the market decline at an unprecedented rate. As long as there is a single stablecoin being traded on the market, investors and traders can make use of it to protect themselves against the dreaded volatility of crypto's price.

Nonetheless, I believe that stablecoins might be the best solution to protect your investment against a bear market. Of course, there's always the choice of cashing out to Fiat. But most (if not all) stablecoins don't require ID verification for you to obtain the benefits of the USD. Which is why, these digital assets prove to be extremely convenient for anyone looking to obtain the "best of both worlds". Just my opinion

[meliodas]

It only become a solution against a bear market when you are using it to keep the value of cryptocurrencies intact. You can use it to convert your cryptocurrencies into a digital dollar and keep it and hold it until the price reaches your buying point again, resulting for you to get more cryptocurrencies at such a lower price.