What do you think about exchanging your bitcoin for stablecoins?

[9thsky]

Do you recommend it? Why? Why not? Which stablecoin do you recommend on Binance?

[OmegaStarScream]

I would only use them to take advantage of the price volatility and make some profit. I wouldn't recommend storing it for a long period of time.

As for which one to use, then it's just a matter of preference but I'd go with BUSD (on the binance smart chain) or USDT (TRC20) since Ethereum's fees are way too high at the moment.

[Coyster]

I've not exchanged my Bitcoins to stable coins ever (and I don't trust some of them per se), even when there's a plunge and it's looking to continue. I think Bitcoiners who convert to stable coins are in the network for the short term, long term Investors are less concerned about short term volatility; when there's a drop in price, if you don't have any intentions of selling, just hodl, till it appreciates again.

[20kevin20]

Since they're centralized and you could lose your funds at any given time as they will, I would not use them at all if I had to chooae. They're quite uncertain for me, from supply to the coin team's actual intentions.

There have been cases of frozen addresses with stablecoins so that's a no-go for me unless you're talking about a negligible amount of money you can afford to lose.

[bitbollo]

why I should exchange my coins for some stable coins?
ok if there are some conditions on the market but generally it's just a mistake since I am assuming the risk of having funds in something that could be sized or blocked from a central authority, definitely an option that I want avoid.
Plus crypto market is rising nowadays, I don't think it's a good choice invest on stable coins.

[hatshepsut93]

I would trust a reputable bank more than a stablecoin, stablecoins are just centralized payment systems that exist in a form of cryptocurrency. This means that just like banks, they can have a bank run, or they could make an exit scam and so on. Besides, if you're selling Bitcoin for fiat, you probably want to use that fiat for something, like buying a car or a house, and it's hard to do that with stablecoin.

[9thsky]

I would trust a reputable bank more than a stablecoin, stablecoins are just centralized payment systems that exist in a form of cryptocurrency. This means that just like banks, they can have a bank run, or they could make an exit scam and so on. Besides, if you're selling Bitcoin for fiat, you probably want to use that fiat for something, like buying a car or a house, and it's hard to do that with stablecoin.

why I should exchange my coins for some stable coins?
ok if there are some conditions on the market but generally it's just a mistake since I am assuming the risk of having funds in something that could be sized or blocked from a central authority, definitely an option that I want avoid.
Plus crypto market is rising nowadays, I don't think it's a good choice invest on stable coins.

Temporarily, to lock in, until you cash out

[irixo10]

Do you recommend it? Why? Why not? Which stablecoin do you recommend on Binance?

Before exchanging your Bitcoin to stablecoins you need to have a good reason for doing such because on one hand, Bitcoin is a very valuable coin whose value has increased a lot and on the other hand, stablecoins are coins with a fixed price, that is, even if you sell your Bitcoin to any stablecoin of your choice, the value will remain the same till you sell it to another coin. So before selling your Bitcoin, you need to decide if it is short term, maybe to hedge against bear market, then it might be a good idea but you will have to follow the market to know when to sell back to Bitcoin. However, selling your Bitcoin to stablecoin and planning to hold for long term, might not really be a good idea because the value will not appreciate. Nevertheless, talking about recommended stablecoin on Binance, DAI might be a good option since it is decentralized and can't be frozen.

[DoublerHunter]

Do you recommend it? Why? Why not? Which stablecoin do you recommend on Binance?

^ Definitely, you can. When I was an active trader before this is my strategy to cut my loss. It is diversification of assets when BTC price goes down and if you want to immediately cut your losses. This sounds like a playing safe in the market, you can hold the value for a while a choose stable coin and then buy back if the price will continue to go down or hold your stable coin when the BTC price continues growing up. Nevertheless, I dont have enough idea which good stable coin in binance but probably it is the same if you hold a stable coin there, like BUSD.

[BIT-BENDER]

 There is a colleague of mine waiting on Bitcoin to get to 45,000$ to transfer her Bitcoin to stable coin and if the price is below 20,000$ she would transfer it to stable coin, this person bought Bitcoin last year and the price was affordable for her, I think its FOMO for her because when she bought it never had she thought it would be breaking ATH in less than 4-6 months, to her it was her plan that can early, I think its a personal decision and I don't talk people into it or out of it.

[Sterbens]

many choices, DAI, USDT, USDC and BUSD, all relatively stable and not too different. You only need to take advantage of the conditions where the market is Bearish. that's what is often an effective alternative to exchanging bitcoins. However, each condition has a different gap, so you only need to keep it in stable coins for a certain period of time. And note that with a strategy to exploit these conditions, there is added value when you can exchange it for bitcoin is undergoing a correction..

[The Cryptovator]

If you are wondering to trade BTC/Stable coin then you need to exchange stable coin. In this way, you might gain and accumulate few profits or you might lose as well if BTC pumps after you bought the stable coin. I am using USDT as a stable coin on Binance. Because it's quite easy to peer-peer sell in my country and doesn't require fees if use TRC20 chain. If you don't want to take advantage of bitcoin volatility and don't want to take the risk then you don't need to convert your bitcoin to a stable coin.

[Silberman]

Do you recommend it? Why? Why not? Which stablecoin do you recommend on Binance?

The first question that comes to my mind is why you want to store stable coins? Lets begin with that, if what you want to do is to protect yourself from a possible crash then this could be a good movement but only do so when the price has already giving you signs that it is going down and that this tendency is going to continue, something that is not the case now, however if you want to do this to store your funds long term or to earn profits then I would not recommend it.

[Karartma1]

I think the only good use case for stable coins is to use them to avoid going back to fiat money. Before stablecoins you would have been forced to exchange your precious coins into whatever fiat currency suits you while with stable coins you can stay in digital dollars and trade your opportunities on the market. Other than that, I don’t see why they should be used. Maybe you could top up your crypto debit cards and get some interest on that.
Just be aware of what stable coins you decide to use, do thorough research about it

[passwordnow]

Ask yourself, why you have to do that? are you a day trader and just want to convert it from time to time? or you're just taking profit and keeping it on stable coins and will wait for the day that it will have a proper dump so you can buy again those bitcoins at a lower price.
Recommended or not, it is you that will determine this strategy if you really want to do it. There is no one that will stop you from doing so, if it's effective to you then you have to follow your gut. But if you're like me that just want to hold it and keep it as is, I like it more if I do that.

[SerbSerc]

I do that occasionally. When btc goes high i exchnage it with stablecoin and when btc comes back then I convert back my stable coins with BTC. Thats how I keep my money in crypto.

[Josefjix]

Stable coins are not volatile, perhaps just representing the traditional currencies. I don't always use them except in cases where there are no direct pair to my desirable coins to trade, I would exchange my coins to a stable coin and trade. But they are used to curtail lost when there is negative lose in cryptocurrencies. It depends on what exactly you need to do with your coins, it is a different stroke for different folk.

[militiariko]

Do you recommend it? Why? Why not? Which stablecoin do you recommend on Binance?

First you need to understand that stable coins are not a form of investment; once you move your bitcoin to stable coin; then it is no longer an investment but an asset, a reserved funds etc. I used the binance usd (busd) and usdt; it makes it very easy to trade btc eth or top coins pair