Why do you use stable coins?

[repear7]

Hi, I'm a normie who finally got into crypto in nov 2021. But I don't get stable coins. When you sell your crypto, why don't you just convert back to fiat and put that fiat into your bank account right away? I worry about stable coins becoming un-pegged; this is a big concern for me; it's an extra worry that you don't have if you just convert back to fiat right away.

If you are a trader, you would buy and sell many times. So it will not be suitable that every time you sell your crypto, you withdraw it straight into your bank. Then again if you want to trade, you will again convert fiat to crypto and incur all these extra costs. For this reason, stable coins are important.

I agree with you. Because the stable coin will stay the way you want it to be. If you have stable coins in any account then you can trade with them safely. If you want to withdraw the stable coins, there will be a fee. Some fees will be deducted when you want to re-account. But this is not the case with stable coins. So I think stable coins are very important.

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[tulusikhlas]

I use stable coins to keep them while I still see which coins I want to invest. Because it can be said that I can maintain my financial stability for some time. Because if we put money in coins that move high, then we will not focus on analyzing. For me minimizing risk is something important.

[danherbias07]

Indeed it is not for holding.
It has great usage for trading pairs but never for an asset. But there are those who do long-term trading with these stable coins. Movements like $0.01 will make a huge difference when traded at millions in amounts and they are waiting for that moment. I think that is the next purpose of it but never really like the gold or bitcoin thing for a very long range of holding. I don't recommend this to my friends also.

[Pejoh Asu]

The presence of stable coins makes us avoid big losses, such as in December until now the market is red so if we move to stable coins then we don't lose tens of percent, and this is what makes stable coins a good project because it makes the market safer.

[kryptqnick]

I don't use stable coins because I don't do trading, but I think they're useful for these purposes. Converting to fiat directly isn't always a possibility, and if you do it many times per day as a trader, your bank will probably be annoyed by it and suspect illicit activities. Also, withdrawals from the exchange can take some time to be approved, not to mention that there might be withdrawal fees. So it's way easier to keep the trading between cryptos on the exchange and use Tether or something like that to accumulate profits. And then, of course, you can convert those coins into fiat every once in a while to enjoy your profits and use that money for anything you want.

[pakhitheboss]

I have been using stable coin a lot as I get paid in it and I pay others in the same format. I have never used it for trading or other stuff. What I like about a stable coin is that the USD value remains stable and at the same time the transaction fee is also very less. If you use TRC20 stable coin then you will not incur any charges too if you have TRX in you wallet which is a lot more cheaper.

[nitin8263]

I use stable coins to make a good gain and most important thing that these coins show good Move with BTC, if you want huge return you can hold stable coins for longterm.

[xmonkeyx]

I use stable coins when the current market price is unstable which continues to decline and that is just to secure my assets and also avoid big risks.
I think many people do this to avoid big losses when the market is bearish and will buy other Altcoins when they have the potential to make a profit.

[savetheFORUM]

I can see using stable coins as a trading pair to purchase alts on a dex but I don't understand holding stable coins for longer periods of time like weeks, months or years as a store of value; to me this feels way too risky. What am I missing?

You must be right with your approach on stablecoins as I am also having similar thought on currently available all stablecoins. It means that at any time these stablecoins may face any problem from governments hence not trusting them will always help anyone to remain safer.

For P2P trading, I am currently I make use of USDT still I do not hold them for hours. Even sometimes, if my orders remain unpicked then the amount I will be holding in stablecoins would be less than $20 only.

Might be different if you could do a lot of your every-day normal shopping with stable coins but right now you can't.

Yeah, I am seeing even my favorite gift-card providers are not accepting stable as of now. Hence, it would take years to use stablecoins for everyday spending.

[mindrust]

Hi, I'm a normie who finally got into crypto in nov 2021. But I don't get stable coins. When you sell your crypto, why don't you just convert back to fiat and put that fiat into your bank account right away? I worry about stable coins becoming un-pegged; this is a big concern for me; it's an extra worry that you don't have if you just convert back to fiat right away.

I can see using stable coins as a trading pair to purchase alts on a dex but I don't understand holding stable coins for longer periods of time like weeks, months or years as a store of value; to me this feels way too risky. What am I missing?

Might be different if you could do a lot of your every-day normal shopping with stable coins but right now you can't.

People use stable coins because withdrawing/sending the actual USD is a pain in the ass because of the banks. They ask the source of funds, want to do KYC on you, it is slow etc. So people use these *tethered* crypto instead because nobody (usually) ask any questions about their source and you can send and receive them very fast.

Some of the stable coins are indeed may go bankrupt in the future. You are right to be worried about it. So, as always you don't put there more than you could afford to lose. Stable coins are not 100% safe. They are fast, cheap and KYC-free for a reason.

[pawanjain]

I personally don't hold stable coins for a long term. I prefer holding my coins instead.
I only use stable coins when I need to withdraw money into my bank account and that is when stable coins come into picture for me.
On few occasions though, I hold stable coins for 2-3 days when I am actively trading but otherwise no.

[fullhdpixel]

Hi, I'm a normie who finally got into crypto in nov 2021. But I don't get stable coins. When you sell your crypto, why don't you just convert back to fiat and put that fiat into your bank account right away? I worry about stable coins becoming un-pegged; this is a big concern for me; it's an extra worry that you don't have if you just convert back to fiat right away.

I can see using stable coins as a trading pair to purchase alts on a dex but I don't understand holding stable coins for longer periods of time like weeks, months or years as a store of value; to me this feels way too risky. What am I missing?

Stable coins has been a way to cut down the long process that traders would have to go through while trading crypto and fiat. If you’re someone who is into day trading, then you would definitely know the importance of having to make use of stable coins, they make the process to be more easy for you while trading, because you wouldn’t have to be withdrawing to your bank all the time and then depositing back to the exchange and converting it. That’s quite a long process, so simply just move it to stablecoin and after that you can also easily move it back whenever you want. Also it’s fun to hold stablecoin.

But, as for someone who wants to Hodl, then you can be withdrawing to fiat whenever you are ready to withdraw, that would be better.

[lucates]

The presence of stable coins makes us avoid big losses, such as in December until now the market is red so if we move to stable coins then we don't lose tens of percent, and this is what makes stable coins a good project because it makes the market safer.

I am totally agree with your point because choosing stable coins is always safe zone and we can't bear big losses. Chairman Powell said the stable coins has more use compared to other coins in the crypto maket. He even went on and said that with large network platform co-operations stable coins would be very helpful in global payment transactions.

[asyakashi]

Some exchanges cannot directly exchange crypto to fiat or vice versa. Another advantage of stable coins is that when you want to invest but the market is not stable you can store it in usdt so that the fiat value does not change, besides that USDT is used to buy digital goods because it is more stable when transacting.

[indo1]

There are actually special benefits that we get from stable coins even though they are basically stable coins just like fiat because their prices do not change and are centralized. Here, we use stable coins for more stable transactions such as the purchase of digital goods that are indeed transactions using blockchain because it is easier.

[K4C]

In this case i said that in the market Many stable coin are available BUSD USDN USDC USDT ect but according to my choice so i use for my money are stable so i purchase a usdt because its a very big role into the cryptocurrency and i use it very well and its a very strong coin and the next future chances is that will made a king into the stable coins.

[repear7]

I mostly use USDT, BUSD. Because there is no fee for all these coins. And if I put the dollars in a coin, it is likely to decrease. Such as ether, bitcoin etc. And with these coins you can easily buy tokens. So I think every trader should keep stable coins.

[Galley]

With the help of stable coins, you can minimize your losses in a falling market without switching to fiat. In addition, you can use the farm in the stable coin pools to the stable coin. Of course, the percentage is small, but still, the income goes.

[kojektea]

Some countries prohibit using cryptocurrencies to transact. It also includes stable coins. We need a stable coin when we want to return to investing after a positive trend returns to the market. With stable coins we will be easier to move funds. Because there is no need to deposit in the bank again to re-invest.

[prosperoustop]

I try to be most of time in stable coins, look at bearish market, better to be in stables, and when you will see the bottom - thats time to buy