Is it good or bad idea saving every penny on crypto stable coins

[Cryptomultiplier]

Unlike other cryptocurrencies like bitcoin, stablecoins are designed to maintain their value by pegging their price to a stable asset like a fiat currency (eg US dollar) or a commodity (eg gold). The purpose of stablecoins is to minimise price volatility, making them more suitable for payments.

https://www.bvnk.com/blog/stablecoins-vs-bitcoin#:~:text=Unlike%20other%20cryptocurrencies%20like%20bitcoin,them%20more%20suitable%20for%20payments.

I would love to emphasize on how stable coin, as the name implies, is just as its name sounds, stable. Your currency saved in stable coins will remain same without adding up interest as BTC does because it works as a stable asset one can keep just like other cryptos but they aren't just any other cryptos too.

BTC is volatile as are other crypto currencies, one minute the price is up, the next, it is down. Within the few minutes, one can become a millionaire or simply loose and become broke or bankrupt from trading their crypto.
That's why instead of using a more volatile decentralized asset that isn't a regular bank to save money or make payments which have same  value as the local Fiat, stable coins serves just fine.
Some of the top five stable coins one can use remains the Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI), and TrueUSD (TUSD). Others exist, but these are more accepted.

[erep]

In my opinion i think it is not a bad idea. But it all depends on the stable coin you are saving it and the value it would be if converted to your local currency. Lets say for instance you are using the USDT stable coin just know that there will be am increase in the price of your holdings to your local currency if dollars start increase and vice versa. Which means the value of your holdings will be affected by dollars price changes in the stock market.

The best option for fiat is to convert to USDT rather than holding local currency because the value of other currencies is getting lower but USDT can still maintain its value, in this era it is increasingly easy for us to save money in any currency and we must choose this option to maintain the stability of asset values we save it in USD/USDT, because when we need money we can exchange it easily and the process is very simple, so don't accumulate local currency in the bank because it will be very detrimental to yourself.

[Huppercase]

Sometimes I begin to imagine instead of transferring my money into the bank to keep for a number of days or months before usage in form of savings that nothing will add up instead it remains stagnant or the bank charges me even more. Is it not better I save them on a stable coin such as the USDT?

Please what do you think? Will I end up losing my funds one day if I do so?
To me I feel it's good way to save.

Please what's your opinion on this?

The highest interest a bank is going to give you on a savings account will not be more than 4% in average, and your money will be invested into another company or given out as loan to other customers with high interest rate. As for USDT, if you stake your money, you have an annualized rate of investment at 7% maximum, and they used your money to do what they want, they can loan it to a venture capital to invest in other tokens, now with this do you really need banks and USDT? You don't because in the long run, the two of them are the same just operating under different uniforms.

If you don't have plans to invest your money, live if in your local bank and if it's going to be there on a long term levels, kindly invest it into Bitcoin or any other investments outside crypto. That's the only way you can see good use of your money after sometimes.

[Casdinyard]

I say it all depends on the stable coin that you put your money in. Although in all honesty I don't think you should keep money on stable coins for extended periods of time especially if the very reason you're in crypto in the first place is because you want to earn more money. Putting them on stablecoins and not even making them work by staking them on a trusted liquidity pool will kill your profit momentum and may very well cause you problems in the future as well in regards to trading confidence.

Stablecoins have their perks and upsides, but if you wouldn't gain anything of substance from those upsides then they aren't worth scat at all to you. What you should do instead is seek savings on a brick-and-mortar bank because at the very least when it comes to security, your money's safe and insured, and while it's negligible, your money could earn dividends while it's marinating inside the bank. All of these things you wouldn't really be able to achieve when you put your money on stablecoins, and in the case with Luna's USD stablecoin, it might even happen that you lose the value of your stablecoin when it stops getting pegged towards the real life currency it's supposed to represent in the crypto industry.

[South Park]

In my opinion i think it is not a bad idea. But it all depends on the stable coin you are saving it and the value it would be if converted to your local currency. Lets say for instance you are using the USDT stable coin just know that there will be am increase in the price of your holdings to your local currency if dollars start increase and vice versa. Which means the value of your holdings will be affected by dollars price changes in the stock market.

The best option for fiat is to convert to USDT rather than holding local currency because the value of other currencies is getting lower but USDT can still maintain its value, in this era it is increasingly easy for us to save money in any currency and we must choose this option to maintain the stability of asset values we save it in USD/USDT, because when we need money we can exchange it easily and the process is very simple, so don't accumulate local currency in the bank because it will be very detrimental to yourself.

All fiat currencies do this, and stable coins that are supposedly backed by those fiat currencies suffer the same problem, so putting your money on USDT only makes sense if your local currency is weaker and it is experimenting a higher level of inflation than the dollar, however you must not forget that such practicality comes with a cost, since there have been several stable coins that lost their dollar parity and they never recover it, causing the people that invested in those coins to lose a massive amount of money.

[GeorgeJohn]

Is not a bad idea to put your savings in stable coins but maybe not exchanges and not all of it as well in cryptocurrency. Put some in USDT bank account, some in a fixed deposit for year in the bear and could acquire some real estate. Anything online might not be the safest, even the wallet, so divide your profit and put it everywhere. For some countries that follow cryptocurrency investment of there citizen and seek tax on it, hold on to your profit till the tax evades.

it is not bad idea to put your savings in a stable coin but it is obvious that stable coins does not have the kind of increment a Bitcoin have intense of long-term studying or serving your money, it is better for you to store your money in one particular place without yielding anything, it is better for you to risk the money for any cryptocurrency investment that you know that the coin is very potential but it will take like long time duration before it can manifest or matured to get profit, what I will advice people is to take a risk in any investment, a risk take always meet up with opportunity that will elevate him or exploit him

[KingsDen]

Op, you will have varying answers and the answers might just be opposite to each other and you will wonder whey. This is the reason you will have inconsistent answers;

• Someone from the States will give an answer different from someone from the third world countries
• Someone who is privacy concerned will ask the type of stable coin you want to buy
• An economists will have a different view of no returns, etc

But you have to know your country and what is best for you.

[_BlackStar]

-snip-

The best option for fiat is to convert to USDT rather than holding local currency because the value of other currencies is getting lower but USDT can still maintain its value, in this era it is increasingly easy for us to save money in any currency and we must choose this option to maintain the stability of asset values we save it in USD/USDT, because when we need money we can exchange it easily and the process is very simple, so don't accumulate local currency in the bank because it will be very detrimental to yourself.

USDT is also not a completely stablecoin as its value also fluctuate. Apart from its value - you also need to consider the risk factors involved in it instead of expecting USDT to be a safe asset. Imagine if your wallet is locked for some reason or you lose access to your wallet - that's much worse than storing fiat in a bank.

Instead of making USDT a store of value asset - then I tend to expect them to buy assets or buy assets that have the potential to give it value growth. Bitcoin and many altcoin can be an investment option - but buying physical assets for the long term is also a good investment option instead of keeping fiat in the bank.

[Churchillvv]

Building on what Nwada001 and Kingsden has said, it all depends on your location (country) because you will only benefit if you save in a stable while you are in a geographical location where the local currency is get devalued just like my country. it if you're in the US then it probably a bad idea because it almost the same thing with having fiat in your possession.

Perhaps if you're interested in building interest or making profit, then investing is the best option than just save in fiat or stablecoins, you could look into Bitcoin that is volatile enough to yield some good profit after some time of holding, or even look at reputable atlcoin like ETH to invest in. but if you wish to go for stablecoins for your preferred safety then you should be privacy concerned, if you are then the coin which you wish to save in should be watched out for.

Regardless, I will just make it clear to you that there is no good or bad choice here because it's location dependant.

[el kaka22]

Stable coins part are the confusing part, why stable coins? I am sure that everyone would be shocked about that part. I understand that you will want to keep your money in crypto, because it is something that goes up, but why stable ones? I would say saving every penny in bitcoin seems like a better idea and I see that there are plenty of other people who agree with me. I can't really make it grow any better way, stable coins would not make it grow, it is basically same thing as keeping it in the bank as fiat.

I would say if you do end up putting all into crypto that would be better and should not be a big deal at all. I hope that people could see that difference and could make a lot more money as well. It would be a lot better in the end.

[bayu7adi]

FIAT itself has become the currency most affected by inflation, plus you are risking it on a platform that manages USDT where it will seem like you are risking your money in two places. Just choose one, between FIAT or Crypto. Unless you want to buy crypto by holding USDT while waiting for the moment, maybe that makes little sense.

I recommend you just hold BTC, but please note that currently a bullish market is occurring and many predict it will only last until early 2025. So DWYOR for my current advice. The price of bitcoin reached ATH a few days ago, which means it is no longer a cheap price compared to a few months ago.

As you know, USDT will not be immune to inflation, so it is not a solution for storing value.

[MFahad]

Perhaps if you're interested in building interest or making profit, then investing is the best option than just save in fiat or stablecoins, you could look into Bitcoin that is volatile enough to yield some good profit after some time of holding, or even look at reputable atlcoin like ETH to invest in.

I wouldn't recommend investing money that is meant to be saved because a person should have different funds for both purposes. If one is willing to make investments, they should do it separately and shouldn't invest the money that they wish to save thinking that they will get some interest or profit if they do so because you never know the outcome of an investment and you don't want your savings to get locked in an investment and you have no access to them when you need them.
We often face emergencies in our lives and in those emergencies, we need funds and if we have all our money, the savings, invested in any industry, we might not be able to withdraw those funds in an emergency situation and that can be troublesome.

[bettercrypto]

Sometimes I begin to imagine instead of transferring my money into the bank to keep for a number of days or months before usage in form of savings that nothing will add up instead it remains stagnant or the bank charges me even more. Is it not better I save them on a stable coin such as the USDT?

Please what do you think? Will I end up losing my funds one day if I do so?
To me I feel it's good way to save.

Please what's your opinion on this?

Why use stablecoins when you can exchange the money you have with bitcoin? Because I am pretty sure the interest you will get is even higher, especially since the bull run is coming this year. And when you see that your profit is big, take it out and exchange it for your fiat.

Now, if you have doubts about Bitcoin and you really want to put it in USDT or stablecoins, that's your choice, but you should know the consequences before you do that. But if you ask me, invest in bitcoin because it will really grow a few months from now.

[kawetsriyanto]

Saving in USDT when you are in the US has no difference except for the bank charges, which you might be charged for maintenance, because the USDT is still pegged to the United States dollar, so if its value is reduced, it will also be reduced no matter what form you save it on.

It has similarity and differences.
Since it is in stable coins, the value is relatively quite secure because mostly there will be no significant change in the price. But when we store our money in the banks, there should be monthly fees to pay. Meanwhile storing in stable coins, we don't need to pay anything. Sometimes, the price of stable coins can increase as well. But this depends on the pair of your local currency.

But if you are from a country like mine where the local currency is losing value on a daily basis, I will advise you to save on stable coins, not just USDT but DIA or any other stable coin. It's safe, provided that you don't leave them on a centralised exchange. You should be in charge of the security, so losing it or not losing it depends on how you handle it.

Yep. It is a good idea to keep in stable coins if our local currency losing the value with dollars. For example our local currency (Rupiah), it sometimes decreases a lot. So, it has an advantage because the price of stable coins sometimes can increase quite a lot. In that time, we can convert the stable coins with the local currencies more profitable.

By the way, even if we want to keep it on CEX, don't store too big number of stablecoins. We also don't choose random CEX, only choose most reputable CEX!

[Nwada001]

It has similarity and differences.
Since it is in stable coins, the value is relatively quite secure because mostly there will be no significant change in the price. But when we store our money in the banks, there should be monthly fees to pay. Meanwhile storing in stable coins, we don't need to pay anything. Sometimes, the price of stable coins can increase as well. But this depends on the pair of your local currency.

If it's for the bank charges, which I also highlighted in my comment, then the person can decide to keep it on their own personal volt where they can be fully in control over the funds, there is nothing to worry about, no trace to how you are going to spend the money, and they can't be restricted from what they can do with the money or not.
 
The only disadvantage now is the safety for the owner, especially for those who are not private with their holdings because holding large amounts will attract attention to your home.

[South Park]

Sometimes I begin to imagine instead of transferring my money into the bank to keep for a number of days or months before usage in form of savings that nothing will add up instead it remains stagnant or the bank charges me even more. Is it not better I save them on a stable coin such as the USDT?

Please what do you think? Will I end up losing my funds one day if I do so?
To me I feel it's good way to save.

Please what's your opinion on this?

Why use stablecoins when you can exchange the money you have with bitcoin? Because I am pretty sure the interest you will get is even higher, especially since the bull run is coming this year. And when you see that your profit is big, take it out and exchange it for your fiat.

Now, if you have doubts about Bitcoin and you really want to put it in USDT or stablecoins, that's your choice, but you should know the consequences before you do that. But if you ask me, invest in bitcoin because it will really grow a few months from now.

The OP, for what I can tell from their post, do not seems to be interested in becoming an investor, they just want to save their money and keep it safe, so with this in mind, bitcoin despite how an amazing investment it can be, is not really a good option to them, since its extreme volatility will most likely scare them and then they will sell for a loss, however stable coins have their own fair share of problems, and unless the OP is aware of them and knows what to do in case they encounter them, they might as well just keep their money in their local currency.

[Barikui1]

Sometimes I begin to imagine instead of transferring my money into the bank to keep for a number of days or months before usage in form of savings that nothing will add up instead it remains stagnant or the bank charges me even more. Is it not better I save them on a stable coin such as the USDT?

Please what do you think? Will I end up losing my funds one day if I do so?
To me I feel it's good way to save.

Please what's your opinion on this?

I actually don't think it's a good idea because their is no difference between a stable coin as usdt and the us dollar, since the usdt is being peg with the dollar, and nothing is being added up, I don't think it's a wise thing to do.

And another thing about it is that any money being saved up has an enemy which reduces the value of that money, and that is inflation, because am very sure that since nothing is being added to that money, the value will be reduced as times goes on, so I would suggest to you that if you want to save money, save in anything that appreciate in value overtime, something like Bitcoin, gold or land, so it's very important you save in anything that appreciate in value, not in fiat that loses value due to inflation.

[OrangeII]

I think, in terms of saving money, especially between stable coins and Fiat, then I would tend to choose Fiat. Somehow I feel that saving money in the bank is still safer than saving money in the form of stable coins. This might be different if you choose a type of investment such as bitcoin or altcoin which has high fluctuations. that's because your assets can increase and decrease depending on how you use them.
However, when it comes to saving money, I think keeping it in a national bank would be better, and more flexible. Well, that's what I think. However, if you feel that holding USDT could be better, then you can do that. However, I hope you have really considered it.

[Strongkored]

It is undoubtedly a good decision.  Hope you get good results from your decision to deposit your money in stablecoins.  It has no chance of losing your money and hopefully your money will grow by a certain amount.  Keeping money in the bank means facing a lot of trouble. Also there is a possibility of the bank going bankrupt. You can deposit money in USDT, BTC without doubt.  And for beginners should not engage in trading.

I actually think the opposite, this is a much riskier decision than saving it in a bank even though the bank could go bankrupt but for example, in my country a number of savings are guaranteed by the government if the bank where we save the money is in a bank that is guaranteed so you just need to look for a trusted bank so that when the bank go bankrupt, our money is still safe or we can still get it back.
Your money's stablecoin doesn't lose value but it also won't increase. What's worse, USDT is a centralized coin so it's possible to have no value at all, it's much better if you make it into Bitcoin but if it's only for short-term savings, keep it in the bank it's actually much better than stablecoins, but If you still choose stablecoin DAI could be an option compared to USDT

[DabsPoorVersion]

It is undoubtedly a good decision.  Hope you get good results from your decision to deposit your money in stablecoins.  It has no chance of losing your money and hopefully your money will grow by a certain amount.  Keeping money in the bank means facing a lot of trouble. Also there is a possibility of the bank going bankrupt. You can deposit money in USDT, BTC without doubt.  And for beginners should not engage in trading.

I actually think the opposite, this is a much riskier decision than saving it in a bank even though the bank could go bankrupt but for example, in my country a number of savings are guaranteed by the government if the bank where we save the money is in a bank that is guaranteed so you just need to look for a trusted bank so that when the bank go bankrupt, our money is still safe or we can still get it back.
Your money's stablecoin doesn't lose value but it also won't increase. What's worse, USDT is a centralized coin so it's possible to have no value at all, it's much better if you make it into Bitcoin but if it's only for short-term savings, keep it in the bank it's actually much better than stablecoins, but If you still choose stablecoin DAI could be an option compared to USDT

Well, if you aim to have an investment that would be better. Buying your fiat money with Bitcoin to see it grow over time compared to the interest rates offered by the banks. However, the main goal of OP is to save his money, it's either to avoid any charges in the bank if ever the account becomes dormant or what.

And yes, I also agree that buying USDT will also be risky. If the goal is to purchase other currency than his fiat currency, it might be better to purchase the Dollar. This way, he is the only one who handles his fiat money. Though, it may not earn an annual interest rate, but he can at least avoid his money to decrease its value due to inflation.