Are stablecoins safe?

[Stalker22]

In the not so distant future, we might see that any price volatility is mitigated by blockchain technology, but that day is not here yet. As such, there are several different stable coins to choose from for added stability when purchasing cryptocurrencies. If you are looking for a way to hedge against cryptocurrency volatility, then you might be interested in integrating stable coins into your portfolio. For anyone who just wants to long Bitcoin, however, it is likely that holding Bitcoin directly is the better course of action.

However, there is still much promise behind these coins. The model works, it's just going to take some more time before any stablecoin offers Bitcoin-like levels of stability and security. The risks of holding the most popular stablecoins are well-known. Those risks include their centralized nature, their reliance on an outside institution to maintain a fixed exchange rate, and their susceptibility to regulatory actions taken against that institution. There are also the risks of their technology being hacked, a malicious actor taking control of the system, or simply failing as a result of poor code.

[1715074184]

1715074184

[1715074184]

1715074184

[1715074184]

1715074184

[1715074184]

1715074184

[1715074184]

1715074184

[1715074184]

1715074184

[Rengga Jati]

What do you guys think about this? Would you recommend the use of stablecoins or they just aren't worth the risk?

The security here may be due to the backup of the stablecoins. and this is one of the reasons why you choose and invest in stablecoins. However, if you ask whether it is safe or not. Every technology and system will definitely not be 100% perfect so there will still be errors. Therefore, we cannot guarantee that it is safe.

Sometimes, some people are using certain news to utilize the condition, both for taking profits, getting more cryptos, and others. And some other people are also using stablecoins because of the stable condition and also backup with strong fundamentals.

[WalkerIVIV]

That might be the case but if you could just use the most used stablecoin I think you will be fine, but always diversify your wealth that's in stablecoin into some various stablecoin that way you'll be safe from sudden crash of stablecoin therefore you could never just lost your wealth overnight.
I think the key is how you manage this wealth in this case, everything has risk, even fiat money still have fluctuation and even gold could lose its value.

[ethereumhunter]

You don't need to worry about whether stable coins are safe or not. Maybe what makes you feel insecure is that you are keeping stable coins on an exchange which could get you into trouble at any time. But if you keep stable coins in other wallets, it will be safer...

If you think that storing a stablecoin on your wallet is safe, then you should remember such stablecoins as UST, which lost its peg to the dollar and crashed. In that case, no matter where you stored UST, you ended up losing your money.

No, I will not use UST because I prefer USDT or BUSD rather than UST. I am also more familiar with those stablecoin than the other stablecoins. Storing USDT or BUSD in any wallet we can control will be safe. But I do not have the plan to hold stablecoin for the long term instead trying to buy bitcoin when the price is down. For me, a stablecoin is just a temporary place to save the value of my crypto assets before I convert it into bitcoin.

[Yamifoud]

That might be the case but if you could just use the most used stablecoin I think you will be fine, but always diversify your wealth that's in stablecoin into some various stablecoin that way you'll be safe from sudden crash of stablecoin therefore you could never just lost your wealth overnight.
I think the key is how you manage this wealth in this case, everything has risk, even fiat money still have fluctuation and even gold could lose its value.

Well, the best thing to do is not to focus on stablecoins but rather make it spread to different coins - Bitcoin and some altcoins in order to avoid high risk. Though I say that we suddenly lost our trust in these stablecoins due to their past issues that we never expect, however it affects us mentally. Actually, it is too hard to bring back the trust when there is already a bad history but yes, I still consider some of these stablecoins can be trusted. The market is soo tricky and we need to choose coins for investment wisely.

[Antonas1]

~ and if we assume that something happens to USDT, I see that it will be a disaster and the end of crypto. ~

How can you say that? Do you think USDT is the mother of cryptocurrencies? USDT is just a fake USD.

I've got this from Wikipedia:

On October 15, 2021, Tether Limited paid a fine of USD $41.6 million for inaccurately claiming that minted USD₮ were 100% backed by fiat USD, when they were actually 100% backed by a combination of fiat USD and other assets such as "unsecured receivables, commercial papers, funds held by third parties, and other non-fiat assets".[58] Tether Limited responded by revising their claims to state that "All Tether tokens are pegged at 1-to-1 with a matching fiat currency and are backed 100% by Tether’s reserves."

If you go to that link, you will find a lot of bad things have happened to USDT. However, it that doesn't make cryptocurrency end, right?

Even though on the coinmarketcap list today, USDT's market cap is around $65,331,568,392, which makes it number 3 in the rank, but it wouldn't make that USDT can decide cryptocurrency to stay life or death. So when USDT dies, it will die with Tether and other stable coins only.

[Bitcoin1216]

Until now I have never found a suspicious thing from the stable coin, stable coins are supported by many platforms such as ERC, BSC, Matic, etc., and until now I think stable coins are safe and worth making us to move assets when we are afraid of prices will drop .

[Maidak]

 Storing USDT or BUSD in any wallet we can control will be safe.

It's not as secure as you think, USDT and BUSD are centralized, even if you store them on your non-custodial wallet, they can freeze your coins at any time. Currently, we only have one decentralized stablecoin, which is DAI and it is arguably the most secure.

But I do not have the plan to hold stablecoin for the long term instead trying to buy bitcoin when the price is down. For me, a stablecoin is just a temporary place to save the value of my crypto assets before I convert it into bitcoin.

That's right, during bear season stable coins are a safe haven for us, they are still essential for them but as long as we never hold them for long we should be fine.

[shinratensei_]

Until now I have never found a suspicious thing from the stable coin, stable coins are supported by many platforms such as ERC, BSC, Matic, etc., and until now I think stable coins are safe and worth making us to move assets when we are afraid of prices will drop .

You shall do a proper research again. There are so many suspicious things related with the stable token just like ability to ban and it can depeg from its value anytime due to the liquidity. The peg was not making the stable token became strong but the liquidity in the market that was defending the peg from token to the its reserved. It's not all of stable tokens were also safe. You shall remember if stable tokens were also being issued by human and it's not  truly decentralized.
I think that would better if you are starting to do another research again caused by so many stable tokens have been fallen like UST

[ethereumhunter]

 Storing USDT or BUSD in any wallet we can control will be safe.

It's not as secure as you think, USDT and BUSD are centralized, even if you store them on your non-custodial wallet, they can freeze your coins at any time. Currently, we only have one decentralized stablecoin, which is DAI and it is arguably the most secure.

It's not a problem because, up until now, I haven't had any trouble using USDT or BUSD and I still like both. I haven't used DAI in a while but maybe someday, I'll try it. Besides that, the stablecoins that I use are temporary and I don't keep them for the long term and I will convert them to bitcoin or altcoins when the market experiences a correction or decline.

But I do not have the plan to hold stablecoin for the long term instead trying to buy bitcoin when the price is down. For me, a stablecoin is just a temporary place to save the value of my crypto assets before I convert it into bitcoin.

That's right, during bear season stable coins are a safe haven for us, they are still essential for them but as long as we never hold them for long we should be fine.

Yes, you are right. We use stablecoins to anticipate the decline in bitcoin or altcoins so that if the price of bitcoin or altcoins decreases, we can buy them using stablecoins. And if the price of bitcoins or altcoins increases, we can sell them to get stablecoins.

[ARTURVH]

At least the current stablecoins I think are not very safe. DAI may be better and has a bit of technical content, but USDT is really hard to say. I think there will be problems sooner or later.

[Ziskinberg]

Until now I have never found a suspicious thing from the stable coin, stable coins are supported by many platforms such as ERC, BSC, Matic, etc., and until now I think stable coins are safe and worth making us to move assets when we are afraid of prices will drop .

You shall do a proper research again. There are so many suspicious things related with the stable token just like ability to ban and it can depeg from its value anytime due to the liquidity. The peg was not making the stable token became strong but the liquidity in the market that was defending the peg from token to the its reserved. It's not all of stable tokens were also safe. You shall remember if stable tokens were also being issued by human and it's not  truly decentralized.
I think that would better if you are starting to do another research again caused by so many stable tokens have been fallen like UST

If the best option is to choose decentralized stablecoins, then that is what we are supposed to do. But unfortunately, most of these stablecoins are centralized, they can take your money if they wanted. For many issues that happened to stablecoins, we can't set aside the increase of distrust of them. After the Luna issue, I'd never invest in stablecoins anymore, at least I was safe rather than losing my hard-earned money investing in a useless project. Even how long we spend searching to potential stablecoins this will never give us guarantee.

[Jaered]

I don't think stable coins are that safe, especially after the fiasco of Luna and some other stables that depegged. But til a better option is available, it is the best tool we have right now in case of a DCA

[iv4n]

I don't think stable coins are that safe, especially after the fiasco of Luna and some other stables that depegged. But til a better option is available, it is the best tool we have right now in case of a DCA

Of course, nothing is 100% safe, but let's not compare stable coins with Luna... I didn't even know about the Luna before their fiasco, I saw the first complaints here and I was thinking "where did this come from?"! Who was crazy enough to go for some Luna, after reading about Luna I didn't see anything special there except some "big words". But people still invested heavily and many lost a lot of money.

Stablecoins are just stablecoins, in the end, we use them to "get in & out" from some coins/tokens, there's no reason to hold them for too long. Some of the stablecoins are around for years without any issues, so even though there's a risk we all use them and we will probably continue to use them.

[fzkto]

I don't think stable coins are that safe, especially after the fiasco of Luna and some other stables that depegged. But til a better option is available, it is the best tool we have right now in case of a DCA

Of course, nothing is 100% safe, but let's not compare stable coins with Luna... I didn't even know about the Luna before their fiasco, I saw the first complaints here and I was thinking "where did this come from?"! Who was crazy enough to go for some Luna, after reading about Luna I didn't see anything special there except some "big words". But people still invested heavily and many lost a lot of money.

Stablecoins are just stablecoins, in the end, we use them to "get in & out" from some coins/tokens, there's no reason to hold them for too long. Some of the stablecoins are around for years without any issues, so even though there's a risk we all use them and we will probably continue to use them.

This was not specifically about LUNA but about the UST algorithmic stablecoin. Both failed and a lot of people lost a lot of money. Not only ordinary users went bankrupt, but also some large funds. It's very strange that you haven't heard about it. LUNA and UST had a big capitalisation and one can say that these events started the market crash that we see today.

[royalfestus]

If your country has cryptocurrency legislation, then you can safely store Tether (USDT) and USD Coin (USDC) bought on the exchange, because these are the most common stablecoins. But the issuer can block your coins. Most of my savings are in DAI, because for now it is a reliable decentralized stablecoin, but I will not give you guarantees that this will not change in the future.

With an exception to other interests, I do not find DAI's choice and its reasoning credible. DAI is similar to Terrausd, that the coin value does not depend on a specific amount of money held in a bank or high-rate asset. BUSD stable Coin team holds over 2 billion dollars worth of bitcoin as of today, which appears to be a reliable source of funds and backup.

[Rana590]

I don't think stable coins are that safe, especially after the fiasco of Luna and some other stables that depegged. But til a better option is available, it is the best tool we have right now in case of a DCA

We can't judge all the stable coins by Luna. Crypto market is uncertain and anything is possible here. But it is not like that stable coins are not safe. Yes, stable coins are not 100% safe but some stable coins are doing great and we can trust these coins. After all, self analysis and market research are highly recommend.

[jostorres]

If your country has cryptocurrency legislation, then you can safely store Tether (USDT) and USD Coin (USDC) bought on the exchange, because these are the most common stablecoins. But the issuer can block your coins. Most of my savings are in DAI, because for now it is a reliable decentralized stablecoin, but I will not give you guarantees that this will not change in the future.

With an exception to other interests, I do not find DAI's choice and its reasoning credible. DAI is similar to Terrausd, that the coin value does not depend on a specific amount of money held in a bank or high-rate asset. BUSD stable Coin team holds over 2 billion dollars worth of bitcoin as of today, which appears to be a reliable source of funds and backup.

On some post it says that Dai is an algo based stable coin similar to Terrausd but there's also post which says that Dai isn't like that, like for example on this link here > https://blog.makerdao.com/busting-makerdao-myths-seven-misconceptions-about-dai/ They say that it was only a myth and they also bust other myths and common misconceptions about Dai.

I think dai is also much older than Terrausd. By the time Terrausd collapsed, other algo based stable coins have also followed but there are no reports that Dai is among with them. I guess that is enough reason for us to trust Dai. Being decentralized is also a good reason on why we must prefer it over the other centralized stable coins.  Usdc is also a good stablecoin but im not sure about Usdt. Many people dislike this stablecoin.

[Silberman]

I don't think stable coins are that safe, especially after the fiasco of Luna and some other stables that depegged. But til a better option is available, it is the best tool we have right now in case of a DCA

We can't judge all the stable coins by Luna. Crypto market is uncertain and anything is possible here. But it is not like that stable coins are not safe. Yes, stable coins are not 100% safe but some stable coins are doing great and we can trust these coins. After all, self analysis and market research are highly recommend.

Stable coins are not safe and should never be held for the long term, some people may believe that the other stable coins still in the market are simply too big too fail, but such a thing does not exist, we have seen many times through history fiat currencies suffering a huge devaluation or simply disappearing, and it is obvious the businesses behind those stable coins are nowhere near as powerful as those countries, as such we need to always be very careful when we deal with stable coins.

[kurniawan05]

There is no guarantee that stable coins will be safe, learning from experience in the LUNA case, even stable coins can collapse if the main support collapses. I only use stable coins that have been proven to have a strong foundation, such as BUSD and USDT.