Save in Stable Coin Or Save in Local Currency?

[hatshepsut93]

To be frank, non is the safest, you keep money in the bank, and those bastards will slowly steal from you, and your money gets shrunk over time and also inflation makes your money to become valueless over time.

For stablecoin, they can depegged when you least expect it, even if you choose the biggest of them all USDT you will need to stay alert and signup for some crypto news alerts, so that you can escape quickly before things get worse.

Inflation of fiat currency affects stablecoins as much as it affects money saved in a bank. My bank offers 2% per year for USD deposits, and with USDT you get nothing. Stablecoins are all centralized, so I'd rather store fiat currency in a bank than in a stablecoin - banks are regulated by the government, they can't as easily take money and run as crypto companies.

The best strategy is to diversify your fiat holdings. Use USD and EUR and maybe a few other strong currencies, have both cash and a bank account. Maybe some small amount of USDT as a backup. Have accounts in a few different banks.

[nakamura12]

Saying either of the two is almost the same since a stable coin is pegged with USD. Well, when you decided to buy Bitcoin then you will do the same which is to pay fiat the receive crypto and also in stable coins to Bitcoin for example where you pay your stable coins to receive Bitcoin. Saving local currency would be the safest of the two because it is still a crypto and that means there's still risk when you are saving it just like other cryptocurrency.

[YUriy1991]

You can get a domiciliary account and save in foreign currencies like dollar. Stable coins are pegged to fiat and they can lose their beg and value.

Save in local currency? That depends which country that you are. If you are in US, Europe spending Euro, or if you are in UK, Kuwait, Australia, Canada or other countries with better inflation, use your local currency.

If you are in counties like Turkey, Venezuela, African countries and part of Asia and South America, use domiciliary account.

Hold only the amount of money that you can afford to lose on stable coins.

In time like this when bitcoin price is low, you can hold bitcoin instead. Bitcoin is the best if you can get it right. Bitcoin is a deflationary currency if compared with fiat.

Yes. you are right, if our country is doing well, it's not in crisis, it's better to save your money in Local Currency but, if conditions are like a country experiencing a crisis, it is highly recommended to choose and save in the form of stablecoins and the choice is up to you, you can USDT or something else and for classic reasons other stablecoins are crypto investment choices too.

Then if you switch to investing. On exchanges, users usually use 2 options, namely a trading account and an investment account. So, for an investment account, if you save it for now, it's highly recommended. where you can use it to buy coins such as BTC with the Dollar Cost Averaging (DCA) strategy pattern or invest regularly in the same amount on a regular basis and also stablecoins are designed to have a value referring to certain commodity assets.

[Awaklara]

Do you think it's better to save in stable coin like usdt or I should just keep the money in the bank?

If you have set aside some of your money to start investing, then do it. You don't have to wait for the right time, because the right time to invest is when you have funds.
if you are waiting for your money to accumulate in a certain amount you want. My advice is still to save your fiat money. do convert it to a stable asset, but keeping it on exchange is also not a good option.
once your money is collected, make an asset purchase and withdraw it to your personal wallet. Hold on until your target plan is met.

[mamesso]

Before your investment plan runs or while waiting for a suitable price to enter the market, the best choice in my opinion is to save money in stablecoins. Other factors as a support depend on where you live, but if you want to play it safe you have to be able to make the best choice to save money.
Stablecoins can maintain the stability of the value of your money, whereas fiat may shrink in value due to not being resistant to inflation. During the waiting process, avoid storing assets on a centralized Exchange, the stablecoins that you have held can be stored in a Wallet that you can control the private key.

[Solosanz]

If you want to save in stable coin, make sure the coin is decentralized, currently the the most liquid decentralized stable coin is DAI.

Saving in local currency can be safer because you're already use it for entire of your life and banks are regulated by the government, but it depend on your local currency, if you hold Argentine Peso it's bad since the inflation rate is really high.

You need to find a trusted digital bank that give you a way to buy USD, Euro etc. Don't use PayPal or Payoneer, it's not good for long term holding.

[Agbamoni]

Do you think it's better to save in stable coin like usdt or I should just keep the money in the bank?

OP, as someone who's still learning, I think the safest way to hold onto my money is by using stable coins. They're like a modern version of saving in dollars, digitally stored in a coin that's tied to the value of the US dollar. This way, I don't have to worry about sudden price swings. Plus, I keep it stored securely on my own, so it doesn't matter if banks or crypto exchanges have problems. My money is finally secure.

I have an article that shows you the leading stable coins of 2023. You should do your own research (DYOR) to learn more about each one individually.
Read here

If you want to save in stable coin, make sure the coin is decentralized, currently the the most liquid decentralized stable coin is DAI.

It may be decentralized (debatable), but the real problem is that it is not fully collateralized. In contrast, DAI is over-collateralized.

[DYING_S0UL]

I think the most safest option to save your money is in Gold. In term of saving in local currency if your country has high inflation then saving it in local currency is a bad idea. As for stable coins, it has disadvantages too. It can be depegged. Also if you think of using any CEXs, don't!  Because you can loss your assets anytime. It can be easily frozen. So for me I would choose neither.

Apart from saving I think you should start investing. Holding BTC was the best option for me. You should do your own research before any investment.

[cryptoaddictchie]

As a novice in crypto, I want to take enough time to learn more on how the market works before investing. But I'm really concerned on how to keep my money safe as I await the right time to invest.

Do you think it's better to save in stable coin like usdt or I should just keep the money in the bank?

Difficult question indeed. Saving currency in banks doesnt give you benefit due to low interest and while putting in stablecoin means you are prone to the possible negative things that could happen on usdt if ever something happened. But if you are using stablecoins in defi you could gain more than saving in the banks.

So to answer the question maybe to be safe allocate your fund to crypto and stables and used that and also save some on bank for emergency purposes. The allocation defend on your risk apetite.

[Coyster]

Do you think it's better to save in stable coin like usdt or I should just keep the money in the bank?

Mind you that hodling stable coins is not investing, your money doesn't accrue any return. The issuing corporation just pegs your money to a fiat currency or to another cryptocurrency, and it can be depegged at anytime or the issuing corporation can become insolvent and thus your stable coin becomes useless.

I'd definitely save my money in the bank than in a stable coin, a bank has more security and insurance of funds, meaning that if the bank collapses, you will get at least a certain amount of your money back; all of these doesn't exist in stable coins and it is even easier for a stable coin to fail than for a bank.

[Don Pedro Dinero]

Mind you that hodling stable coins is not investing, your money doesn't accrue any return. The issuing corporation just pegs your money to a fiat currency or to another cryptocurrency, and it can be depegged at anytime or the issuing corporation can become insolvent and thus your stable coin becomes useless.

Well, it's kind of investing because it has the bad side of investing, that you can lose what you invest, but it doesn't have the good side, that you can make money. Let's look at cases like TerraUSD (UST) as examples of this.

I'd definitely save my money in the bank than in a stable coin, a bank has more security and insurance of funds, meaning that if the bank collapses, you will get at least a certain amount of your money back; all of these doesn't exist in stable coins and it is even easier for a stable coin to fail than for a bank.

I prefer the bank and a little cash on hand at home, but as has been said, the answer depends very much on your personal situation. If you live in a place where you don't trust banks very much, or if you trade cryptocurrencies, you should have at least part of your savings in stablecoins.

[michellee]

What if you did both, saving in stablecoins and keeping the money in the bank? It will be better for you because you can live with cash in your savings. And you can also invest your stablecoins to buy the coins you want.

At least you have two plans that can go together where your investment, if you choose to invest in Bitcoin, you can get a good return in the future. And you also don't need to worry about how you live your daily life because you have savings in your bank that you can use to buy daily necessities.

But those are only suggestions. You need to choose them because they are your money. But whatever you decide to do, you have to know what the risks are and be able to think about how to deal with those risks.

[Lucius]

People should know that most of the so-called stablecoins are not stable or secure in the way they think, and someone has already posted a link to a topic that makes it clear that most stablecoins can be frozen regardless of the wallet they are in. Now the question arises whether someone will take a risk and keep stablecoins, or will take a risk with fiat currencies, which for me are still safer in the sense that they are backed by states and central banks (with some exceptions, of course).

Any way you look at this question is a matter of risk assessment, I would still choose some fiat like Swiss Franc or Euro much more than any centralized stablecoin.

[Adbitco]

As a novice in crypto, I want to take enough time to learn more on how the market works before investing. But I'm really concerned on how to keep my money safe as I await the right time to invest.

Do you think it's better to save in stable coin like usdt or I should just keep the money in the bank?

It is of a choice you can save in usdt if you think your wallet is very secure and safe to keep funds, bank is also cool while saving money but it all depends on your country currency against trade with usdt.
What i mean is that, if your currency keeps depreciating over dollars then holding in usdt will be ideal than your local currency because when you save in usdt and you want to convert to your currency (fiat) you could get more profits along the line. But since you said of investment then leave it to be in usdt for easy access otherwise leave it in bank may require addition stress during conversion processes.

[libert19]

All comments are pretty much regurgitating same thing. If I was you, I would spot purchase Ether, leave it in self-custodial wallet and check back couple years later with profits harvested in USDC, I trust it more than USDT, reasons unknown.

I see no reason to stay in fiat/stable-coin at current prices, it's time to dive-in.

[m2017]

As a novice in crypto, I want to take enough time to learn more on how the market works before investing. But I'm really concerned on how to keep my money safe as I await the right time to invest.

Do you think it's better to save in stable coin like usdt or I should just keep the money in the bank?

Both usdt (any other stablecoin) and money in the bank have significant drawbacks.

Keeping all your money in usdt or money in the bank would be a little reckless, so the best solution I think is to divide your savings into parts. For one part buy usdt because it allows you to quickly buy crypto on any platform. Although with traditional money (electronic), thanks to online exchangers, it is also not a problem. All these usdt are subject to fluctuations and falls, and, moreover, significant ones. And keeping money in a bank is also not safe, because banks go bankrupt, clients' money is frozen, in general, there are also impressive risks.

Why should you wait for the right moment to invest? While waiting for the perfect entry point, you may be missing out on a good opportunity when it comes to investing in bitcoin, you can start doing it right now. In small portions, at intervals of time - just buy when you have free money and the problem of saving money while waiting for the right moment to invest will become irrelevant for you.

[tvplus006]

...Do you think it's better to save in stable coin like usdt or I should just keep the money in the bank?

It all depends on which country you live in and, accordingly, what national currency you have. If you live in America, it is better to keep your savings in USD. If you live in a country where the national currency is subject to inflation, then you should keep your savings in USDT or another stablecoin, the value of which is pegged to USD.

[CryptSafe]

There is nothing bad about your opinion. I see you are trying to be on the safe side which is not bad because no body would watch and see the value of their assets depreciate. You see if your local currency has lost its value and is declining it is best you save or convert to a stable coin and keep it under your watch. I believe smart traders does this too because it is a way of minimising or controlling loss.

However, if you feel like it is good taking advantage of the current market situations, you can opt for Bitcoin if you plan on holding for a long term that would give you time to make more profit while you watch your investment grow.

[sokani]

I would save my money in stablecoins rather than fiat because of the following reasons:

• The value of my local currency is constantly falling against the USD dollar, with inflation on the rise my savings in fiat might not really worth much. Having my savings in stablecoins, as the dollar is rising against the naira, it gives me the opportunity to get the current exchange rate whenever I have need for my money.
• Stablecoins have easy accessibility and usability. That cannot be said about fiats because banks sometimes do have network challenges and one could be denied of his funds whenever this occurs.
• The maintenance and transaction fees are just too much which might varies in different countries. Banks in my country charges monthly card maintenance fee, funds deposit and withdrawal fees and also they charge you a particular parcent for every transaction you make.

[Coyster]

The value of my local currency is constantly falling against the USD dollar, with inflation on the rise my savings in fiat might not really worth much. Having my savings in stablecoins, as the dollar is rising against the naira, it gives me the opportunity to get the current exchange rate whenever I have need for my money.

Fair enough, but mind you that the dollar isn't rising per se, because it is also affected by inflation, the thing is the Naira is falling faster than the dollar, or in other words it is in a worse situation that the dollar, thus when you compare it against the dollar, it then seems as if the Naira is dumping, whilst the dollar is rising (which actually isn't the case).

Stablecoins have easy accessibility and usability. That cannot be said about fiats because banks sometimes do have network challenges and one could be denied of his funds whenever this occurs.

Stable coins are also centralized coins and you can be denied access to it, the issuers can actually freeze it in absolutely any wallet you decide to hold it in, and not to talk of the obvious fact that it can be depped at anytime.

Banks in my country charges monthly card maintenance fee, funds deposit and withdrawal fees and also they charge you a particular parcent for every transaction you make.

There's nothing wrong in paying the service fees for these services you just mentioned.