Are stablecoins a definite solution against a bear market?

[Mighty_crypt]

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?

To keep price at bay? Yes, and the only thing they are good for is trading, i won't recommend keeping huge funds on stable coins like USDT and others, the only stable coin i trust is DAI because it's decentralized

[StephenieDuong]

I dont think holding stablecoin is a good solution in bear market because in some exchange we can trade this with real dollar, btc, altcoins,... So while crypto price still being effect by lots of things, i suggest not to keep stable coin as asset. If you want to stable your investment, then go all in real dollar. If still want to keep stable coin as asset and a new law release to shut that stable coin off, then who can guarantee you can get back your money. 

[naikturun]

stablecoin is used to exchange currency to fiat in the form of digital currency because its value is based on original fiat, this is very helpful to protect people's money when the market is down.
people also use it to wait for the right moment to buy, or just use it to maintain the value of their assets.

[terizla]

this is good plan and i try this plan too. After trade i laways move my assets to slablecoins to avoid loss when i stop to trade.
and i always calculate my profit and loss in stablecoins after trade.

[kindbtc]

If one wants to stay in crypto then definitely fiat backed coins like usdt and usdc etc are the answer but you have to be sure of bear market otherwise you may end up in severe losses and can miss out on potentially massive gains.

[sazonk]

Stablecoin can now be used as a solution to secure the city's assets from falling prices which are increasingly gloomy. But it should be noted that when buying stablecoin we must really buy when the price of the coin is positioned at the base price because in trading stablecoin also fluctuates, only this stablecoin has an excess price value will not fall from the basic value set by the exchanger, and I too secure my assets at Stablecoin. Just a concern whether the exchanger who supports this stable coin can survive and not experience internal conflicts or theatrics like that already.

[Divinespark]

Exactly like that. Stablecoins will keep you safe in the bear market, you will secure your investment and wait for the right time to start buying altcoins when they have bottomed out and profit from them. Sometimes the price of stablecoins also fluctuates but it is not really significant, we can still control it

[akirasendo17]

I think its not the solution, the things that is happening to the market is normal, those people who really don't have a clue why the coins price is going up and down, really dont know what they are doing, it means they are just going with the flow, fomo we should say, or just testing what is crypto and try to make profit because they have friendsnwho are in to crypto as you see the market looks simple but to really know it you really need tonstudy it carefully I hope you understand what I mean god bless

[JahriMeayer]

So far, stable coins are still very recommendations to be a substitute for fiat money because prices are stable for risk I think very small so everyone is not too worried because until now there has not been a problem with stable coins

[zenhu]

Stablecoins for saving the funds for bear market is one of solution we can take. Usually bearish market took 3 month to recover its price or get stable from volatile. Why we don't withdraw all our money from market and use it for real project or business? Then after we can see an opportunity to get back to market we can buy coins from our real project's profit then make it grow while your business still running. Think about that cash flow that you guys can do.

[Ucy]

I think faith in fiat is quite risky aswell. The main risk of stablecoins is their reliance on fiat currencies for stability. Long-term savings for non-deflationary currency like fiat is risky due to inflation ... hence not a good store of value. Better to just diversify your holdings

[ven7net]

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?

I believe that stable coins are indeed a good way to keep their money in a long bear market. Moreover, stable coins make it possible to be sure that you will not lose your funds and they will remain in the same amount. In general, stable coins are now gaining momentum in the cryptocurrency market and are already in great demand among the community.

[Abiky]

Stablecoins are necessary when there's uncertainty surrounding the market, traders who would want to secure their funds against any sudden downturn will be safe with stablecoins.

Let's hope that stablecoins retain their price for the foreseeable future. After all, there are some stablecoins (like DAI) which depend on algorithms to succeed (not backed by USD reserves). Perhaps, exchange-backed stablecoins like Gemini Dollar and Binance USD have better chances of retaining their price of $1 per coin across the crypto market. For once, there was a stablecoin named "NuBits" which promised to be worth $1 per coin. It had a mechanism where the burned supply of NuShares maintained the price of $1 per NuBit across the market. The concept failed, and now 1 USNBT is worth a lot less than 1 USD. I'm afraid this could happen with most stablecoins that are not backed by real USD reserves.

While I agree stablecoins prove to be a great solution for a bear market, they're not perfect. It's best for a person to sell his/her coins into real USD and save that money in a Bank account to prevent any further losses. Until the crypto space becomes widely regulated by governments in  the mainstream world, we cannot have a guarantee that stablecoins will retain their price for the foreseeable future. As of now, the best-performing stablecoins on the market are bitUSD, Binance USD, Gemini Dollar, Tether, DAI, and TrueUSD. Time will tell us whenever the idea of stablecoins will prove to be worth it over time or not. Hopefully, these coins would maintain their value of $1 USD per coin so that investors could trust the crypto market. Just my thoughts

[Mike Mayor]

I'm not really that attracted to the idea of a stable coin. Like I have thought about it but it only really seems attractive when your investment is going down. When the value of your coins you are invested in goes up you certainly don't wish they were stable coins now do you? It sucks to lose and I know I have lost much potential profit. I had to use most of my btc at the beginning of this year and it sucks I think of what could have been. I need to remember though that even with this loss I am still in the green.

[red4slash]

Stablecoin may indeed be used to hold funds while in the market when prices fall, but I am not sure that investors will use stablecoin for the long term because market conditions can continue to change and certainly investors will take advantage of price movements and are not encouraged by stablecoin. and I'm sure they use Stablecoin for current market conditions

[target]

They won't be called stablecoins if they won't maintain the value of your money once all are crashing down. Yes we have seen tether's price somehow reaches up to 1.03USD If you actually have tons of USDT, you'd get extra BTC if timing is right when you buy back your BTC. 

Lots of stablecoins to use, seem there is no issues to US government about all these anyway.

[shoreno]

Stablecoin may indeed be used to hold funds while in the market when prices fall, but I am not sure that investors will use stablecoin for the long term because market conditions can continue to change and certainly investors will take advantage of price movements and are not encouraged by stablecoin. and I'm sure they use Stablecoin for current market conditions

they can only use stable coin if they already bought some cheap coins so that they can prevent it from going down while at the same time they can wait for the market to recover and that is the time they sell what they convert on stable coins  . they can go back buying crypto again once they see the price of the coins drop . stable coins are one of the many solution for the bear market  to keep your funds safe but in my case i prefer the traditional way which was hodling   .

[diazepam666]

Stable coins are intermediate coins to hold the profit what they have in their bad time for BTC on trading site. When there is a growth automatically people will start reversing from USDT to BTC again.
Whatever coin comes nothing can replace BTC from its nature and worth.

[pant-79]

Stablecoins are basically Cryptocurrencies but they are called stablecoins for a reason, this means that no matter how volatile the market gets, they would maintain a constant value depending on the currency that they are pegged with, like you said there was a time that Tether (USDT) traded below $1 even though it was tied to the USD, but just too and check it's current rate now and you would see that it is maintaining the price of the currency that it's pegged with, so yes, Stablecoins are a great store of blue if you want the dollar value of your Cryptocurrencies to remain the same.

[betty11]

In an anticipated long bear market, It will be more wise to convert even your stablecoin to fiat if you own a huge amount of currency. In a rare bad market situation a stable coin like the USDT may just go a little below $1. I fear leaving my coin in stable coin because I am not good in TA, I have not taken time to study it.