Why do you use stable coins?

[Lanatsa]

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.

In many countries it is still very difficult to sell your coins and then put that money in a bank account and then get back to the market, this is a process that can last days or even weeks, and whether you are a trader or investor this time frame is simply unacceptable, this is why stable coins exist, as people can enter and get out of any coin in a matter of minutes or even seconds, this also improves the liquidity of exchanges and coins, so on average stable coins are quite useful in this market whether we like it or not.

Don't know on where you do live on but I don't have any problems on buying out crypto in using up my card and do made out some conversions from fiat to crypto or crypto to fiat.

Well, this would vary on certain conditions because not all countries would really be having the same situation when it comes to this.Stable coins is useful when you do make out
active trades.You don't need to convert out from crypto to fiat actively.

It does vary on someones preference though because not all would really that much confident on putting it into stable coins.

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[TelolettOm]

In my opinion, the stable coin is the best pair to convert when I am doing trading. And we can find more pairs with certain stable coins in all exchanges than pairs with Bitcoin or other altcoins. Moreover, if we have converted the coins to stable coins, the value will not change drastically, it may be a little bit the same. So it is safer for trading. Additionally, a stable coin in certain exchanges can be the one that is available to convert to fiat on my bank accounts such as in Tokocrypto and Indodax as my local exchange in my country. I am sure many people will also think the same, this is not for investment maybe, but more to their utilities.

[letyouearn]

Converting crypto to stable coins is a fast and easy way to save your money when the market is dumping. Or they are useful if you are trading actively. Selling something for stable coins takes 5 seconds and no fees are being charged from you. Selling crypto for fiat money can be very slow and expensive.

[arifteguhr]

Don't really understand what you're talking about, it's about you having a coin that has a graph that is not too big and not too high. you can see an Ethereum chart that you can follow or maybe you can buy TRX coins.

Some people are still too fond of coins or tokens that are very low in value and that is certainly not wrong as long as the coin or token is still very good, so they will not see expensive coins like ETH at this time even though it is also better than the coins which is still cheap at this time

[wajik-tempe]

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.

Don't worry too much especially if you hold top marketcap stable coins like USDT it will be okay it's just the same liek you hold another altcoins with high marketcap, it could gone anytime or un-pegged just like you worried about but it won't like that because it's already there for a long time and it used for a lot of people.
So for me personally holding stable coin is better compared to cash it out to bank account because it's require fee and we need more time to do that moreover if we want to buy coin again with the cashed out money.

[lenovop-70]

I converted to stable to make it easy to make trading transactions. I am a daily trader in several major markets like Binance and other similar markets, if I convert to Fiat every time I make a trade, it will take a lot of time and cost. Moreover, during my experience, it is very safe to keep assets in stable coins like USDT and BUSD, there is no significant increase or decrease in the two stable coins above, so the OP doesn't have to worry about losing the value of their stable coin.

[panukurap]

Waiting for stable coins for day trading is profitable. For now, if the market is not friendly, I can only hold it for a while. I wouldn't convert it to fiat at a time like this because no one knows what the next market development will be. It could be that the market suddenly rises, if I convert it to fiat I will be left behind at the moment. If what happens is that the market still stakes and I experience a loss, this is indeed a risk that I will experience. All things will not always be sweet, you also have to feel bitter every now and then.

[beerlover]

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?

There will be absolutely no point on holding stable coins for any period of time. Probably in stead of holding fiats, you may prefer to hold stablecoin but it will be too risky as stablecoins are not regulated ones hence any problem may occur at any time. I am also making use of stablecoins for trading purposes as my local exchange is not having a fiat based trading pair for any cryptocurrency.

Stable coins help us raise money safely. that's why i use Stable Coin. Specially USDT

You meant crowdfunding? I am sure not most people here are into such activities to use stablecoins. I guess, instead of fiats that you are using stablecoins to raise funds for your projects; yeah, we can use stablecoins anywhere we need to use dollars.

[superman184]

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.

Maybe your concerns are much different from mine. I'm more worried about the Fiat at the moment. If crypto continues to grow, there is a possibility that Fiat will be abandoned and become a stable coin as a replacement for Fiat. The security level of stable coins is much higher compared to Fiat. If you deposit large amounts of money in the bank, is there any guarantee that your money will be safe? If the defendants in the bank ran away and took all your money, would the state that gave the license to the bank pay all your money? The financial authorities limit you to keep a certain amount of money in the bank. If you save more than the specified amount, the financial authorities will not provide any guarantees.

[LUCKMCFLY]

Of course holding stable coins like USDT will be very useful and simple for crypto traders, because this will make it easier for them to buy crypto assets, especially when crypto the price drops, traders who hold USDT can buy first, than those who store fiat in the bank.

Yes, that is a great usability, but I think that one of the main reasons to own usdt or any stablecoin is because also in a really bearish market if you are not in a short position you will lose, and if you do not want to experiment you leave in the stablecoin so that it maintains the value of the money and not leave everything to the volatility of the market. I know many who have BTC and when they go to sleep they convert everything to usdt, then the next day they buy usdt or the stablecoin again, of course this is a double-edged sword, because the next day it may have risen more.

[adiebitsler]

It's the right way to divide what is your profit and which is a start-up capital from what you have. it's best to keep looking at the graph that will grow continuously slowly. If you are consistent to make these profits then it becomes a very profitable thing.

I hope you are not dreaming because the current market conditions are not improving so there is nothing you need to monitor and if you say about an increase in each price chart at this time, then surely you are in a dream and have not woken up from your sleep.

[RealMalatesta]

Maybe your concerns are much different from mine. I'm more worried about the Fiat at the moment. If crypto continues to grow, there is a possibility that Fiat will be abandoned and become a stable coin as a replacement for Fiat. The security level of stable coins is much higher compared to Fiat. If you deposit large amounts of money in the bank, is there any guarantee that your money will be safe? If the defendants in the bank ran away and took all your money, would the state that gave the license to the bank pay all your money? The financial authorities limit you to keep a certain amount of money in the bank. If you save more than the specified amount, the financial authorities will not provide any guarantees.

Okay so we have two possible outcomes, one is a bank running with your money, and the other is tether running with your money. Which one do you really think is more possible? I mean not like banks never collapse, they do, and I have seen it but it is such a rare occasion that it is not a common threat.

Plus, governments guarantee a certain amount of your money as well, which makes it easier for people to trust banks unless they have a huge amount. Whereas Tether is just a company and they are not even registered in most important places, last I remember they had like BAHAMAS registration or something. Which one looks more suspicious? I have to say even though I dislike fiat, I rather hold dollars than USDT (although I prefer crypto over dollars as well).

[TheUltraElite]

Some people are still too fond of coins or tokens that are very low in value and that is certainly not wrong as long as the coin or token is still very good, so they will not see expensive coins like ETH at this time even though it is also better than the coins which is still cheap at this time

True there are people like that who are fixated on some specific coin. But there will always be those who are feeding on the hype train and holding on to shitcoins. It does not mean they are bad, rather the chance that these coins can be big is very low and therefore not worth putting your time into them.

Stablecoins are not same though. They have some purpose in a trader's perspective. However holding them for a long term gain is again wrong. These coins will not show market volatility that BTC or ETH does. Their main use is to be an intermediary as a hedge against the steep down or up swings. Useful if you know how to use them.

Stablecoins are centralized and government minting controlled. Keep that in mind when dealing with them. Use then but dont get too attached.