Should you invest in Stablecoins?

[trudefi]

By investing in stablecoin I mean participating in pools and lending platforms such as compound etc. they have been around for quite a long time and bring returns above bank interest rates(can check on dexlender.com)

[anshor1]

Stable coins ,  We all know it's stable.For what we should invest it. To safe our asset when  market is unstable.
I think stable is important to do it.
But not good for long term investment.
Stable coins are just choice in short term, thats my opinion.
Maybe other members have own opinions

[gunhell16]

I don't know if converting Bitcoin or cryptocurrency to USDT can be called an investment. If all I want is to perform a transaction transfer to another platform or p2p, Then doing daily trades at the trading fair for USDT to crypto?

But if the term is literally to invest in stablecoins, although I know that there are many other stablecoins, that's not the one that I haven't experienced investing in. Because what I often do is trade daily on any exchange platform.

[vegasus]

Stable coins ,  We all know it's stable.For what we should invest it. To safe our asset when  market is unstable.
I think stable is important to do it.
But not good for long term investment.
Stable coins are just choice in short term, thats my opinion.

Although it is stablecoin, the price isn't always stable at a certain rate. You must realize that stablecoin price also fluctuates. Sure, the fluctuation of stablecoins isn't the same as the common crypto coins. If the coins like Bitcoin and Ethereum, their volatility is very high and the price can move significantly.

I think everyone must have stablecoin although they don't invest in them. Stablecoins are also very important, it is very helpful for buying coins or securing the profits.

[sampoerna]

I don't know if converting Bitcoin or cryptocurrency to USDT can be called an investment. If all I want is to perform a transaction transfer to another platform or p2p, Then doing daily trades at the trading fair for USDT to crypto?

It depends on your purpose. If you convert your Bitcoin to USDT to secure the profits, I think it is not a type of investment. But if you convert it to USDT and you pan to hold USDT until its price increasing a lot during the bearish market, it can be called as an investment. Anyway, if you convert the Bitcoin to USDT, and you use the USDT for transaction, It is not a type of investment. You use the USDT for transaction purpose, probably for paying goods or services. 

[therozaq]

I don't know if converting Bitcoin or cryptocurrency to USDT can be called an investment. If all I want is to perform a transaction transfer to another platform or p2p, Then doing daily trades at the trading fair for USDT to crypto?

It depends on your purpose. If you convert your Bitcoin to USDT to secure the profits, I think it is not a type of investment. But if you convert it to USDT and you pan to hold USDT until its price increasing a lot during the bearish market, it can be called as an investment. Anyway, if you convert the Bitcoin to USDT, and you use the USDT for transaction, It is not a type of investment. You use the USDT for transaction purpose, probably for paying goods or services. 

I think convert to stable coins , USDT isn't suitable for long term.
As you said It just not secure or keep your coins from fluctuations.
I don't agree to invest in stable coins.
It's not profitable, better to invest in several coins that  have good performance and we can gain profit from it.
Bitcoin and altcoins such as BNB,  DOT, SOL are one of the best coins  for investment.

[Wiseman]

I do not see any sense to invest in stablecoins, it is like investing in dollars or euros, this cryptocurrency is for saving and not for multiplying. of course there is stacking for such cryptocurrencies but they usually have a very small percentage.

[MUGNIA]

I have never invested in stablecoins, but I use stablecoins to save my assets from losses, and I save them by staking my USDT on Binance with an APY  of 5%. I think it is enough to hold my assets until the halving to buy crypto which has good quality like eth , Sol and even Tron can also be invested, let's welcome the halving that will come soon

[bitbit97]

I do not see any sense to invest in stablecoins, it is like investing in dollars or euros, this cryptocurrency is for saving and not for multiplying. of course there is stacking for such cryptocurrencies but they usually have a very small percentage.

Small percentage is a myth or you havent checked what, for example Binance, offer today. Stacking USDT for 30-120 day period can bring you 3.77-7% annually. Stacking BTC for same period only 0.04-0.25% annually. Check other top5 altcoins for example. Ethereum 0.64-4.06%, BNB 0.38-3.5%, SOL - 0.73-7.6%. So in general stablecoins stacking aint that bad and much different, and is recommended to those who dont like risking.

[Peter90]

I do not see any sense to invest in stablecoins, it is like investing in dollars or euros, this cryptocurrency is for saving and not for multiplying. of course there is stacking for such cryptocurrencies but they usually have a very small percentage.

I read that people in South America and Africa are used to invest in USD
In Europe people, businesses, institutions... have invested in the Swiss franc forever

Many people invest in order to protect i.e. to save their wealth from currency depreciation (i.e. inflation).
Investing isn't just for multiplying, it's also for saving.

[bitterguy28]

Never that I used USDT(Tether) as investment but I use this often to be my medium currency when there is a up and down going in the market so I converting to USDT for a while then wait to buy back again or will convert this in to fiat.
but never to use as Holding material.

[Peter90]

I don't know if converting Bitcoin or cryptocurrency to USDT can be called an investment.

If it's just "parking", waiting for the next buy option, then no, it can't.
If the intention is long term, in hope of getting some return, than yes.
The return could be to protect yourself from losing purchasing power of your national currency, in case $ doesn't depreciate like your national currency.

[Z-tight]

Stable coins i believe are mostly used by crypto traders, stable coins are kind of risky and they can lose their peg, you also have to trust the issuers and hope nothing happens to their company. Stable coins can also be frozen by the issuers, notwithstanding whichever wallet the owner has stored it in.

I don't think people should 'invest' in stable coins or even hold them for too long, it is risky and you may even be holding stable coins backed by thin air in your wallet.

[Peter90]

In summary, stablecoins can be a good investment if you are doing so for the right reasons.

You can't say "stablecoins" are a good investment.

Stablecoins are very different from each other.
There are different types of stablecoins.
There are stablecoins that are scams...



So, would I invest in Stablecoins?

It depends on what those stablecoins are backed by.

Are they backed by $... €... Y... or other fiat currencies?
Then no, I wouldn't.

Are they backed by financial assets like state bonds or some creative finance products (derivatives etc.)?
No, I wouldn't.

Are they backed by precious metals... or some other commodity... or real estate... or stocks of good companies... ?
Than yes, it could make sense.

[elbans89]

I want to ask OP, why we should invest in stable coin?
when the right time to do ?
I think stable coins is just coin to safe our asset whe  market volatile.
So, I think we shouldn't invest in stable coin.
I agree with this