Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Goldlife on April 18, 2021, 07:00:25 PM
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The long answer:
Yes, but possibly no. To begin with, it is important to clarify what a good financial investment means to us. For some, interest rates of 2% at your local bank is considered a good financial investment. To hedge funds, returns rise to about 20-25% before it is considered a good financial investment. For the sake of argument, let’s say that anything above what the market would give you at relatively low risk is considered a good investment.
Due to the fact that stablecoins involve diving into the highly volatile cryptocurrency space, the risks involved are bound to be higher — meaning that that base returns should reflect that. The simplest and least risky method for you to make a good return on your investment into stablecoins would be lending them out, for which you can make about 6% interest. This is significantly higher than what banks offer you, but not nearly as high (nor as exciting) as using them as trading assets to speculate.
So, if you are happy with 6% — stop reading here. But if you are feeling like this doesn’t tickle your risk seeking nerve endings enough, keep reading.
Betting on stablecoins can be highly profitable in the long run, but the key words here are “can” and “long.” “Can” implies that if you bet against the right macro trends, stablecoins will be a key catalyst to insure your risk in cryptocurrency. This is the “long” bet that most crypto investors are making. If a doomsday scenario occurs, central banks will be affected drastically by their governing country’s situation. This can cause fiat currencies to plummet, and your wealth along with it. But, if you have your wealth in Bitcoin, the idea is that you are protected against these black swan events. Stablecoins offer something in between, more or less the best (and worst) of both worlds — a hedge that gives you time and power to decide where you want your wealth to be allocated.
The long view in this case also depends on macro social, economic and geopolitical trends. As global digital transactions increase, so will the demand of stablecoins, and with it the number of tokens in circulation. If you leverage your stablecoins, depending on the underlying blockchain and applications available to you, by staking or providing liquidity then you can also earn some of the network’s transaction fees. The more demand for your stablecoins, aka transactions, then the more fees you can ultimately earn.
But once again, you are betting on both the “can” and “long” variables that are very much out of your control. There is also the problem that if a black swan event occurs, chances are that it can drastically cause a plummet in demand for collateral to which your stablecoin is pegged to. A new battery can plummet the demand of oil, making oil-based stablecoins worthless. Any good investor will tell you that in dire times you should diversify your investments, and maybe that is the correct approach to investing in stablecoins as well. On the low end, it may be worth setting aside more circulated stablecoins like USDT and lending them out for interest rates that are higher than banks. On the high end, maybe you can experiment with a wide array of digital assets that are pegged to different things to make sure you are protected against a single, doomsday causing black swan event. But then again, if Bitcoin is poised to replace the USD, what would be the coin in staking a stablecoin pegged against it like the USDT?
In summary, stablecoins can be a good investment if you are doing so for the right reasons. Short term speculation is probably not that reason, but investing in the right projects can net positive results in the short run. The more realistic scenario would be investing in the industry. In this case, investing in the growth of the pie rather than the size of your piece could be the smarter thing to do!
See our solutions, visit our website www.stably.io
More info: https://www.stably.io/post/should-you-invest-in-stablecoins/
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Indeed, we should invest in stable coins because these stable coins always pair with various cryptocurrencies in markets such as Binance, Huobi, Bittrex and Upbit.
I am only talking about myself who always have stable USDT coins on various exchanges because USDT is very simple to send, especially using the TRC20 blockchain whose transfer fees are very cheap when compared to USDT from OMNI and ERC20.
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It's all the same as asking whether it is worth investing in the US dollar. Stable coins are just money and cannot be profitable for their holders. Of course, except for the case that the national currency, which secured the stablecoin, sometimes strengthens in the exchange rate in comparison with other currencies of the states. Stable coins are created as a buffer between cryptocurrency and fiat for the convenience of working with cryptocurrency.
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Circle co-created USD Coin through a joint venture with Coinbase and a consortium called Centre. Circle also helps other companies adopt stablecoins. Stable Coin Most recently, Coinbase started offering high yields on customer USDC holdings. As of this week, retail investors.
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Stable coins are a valuable asset to make us safe so that we can buy more crytpocrurrency because I believe that cryptocurrency cannot stand without stable coins and I am sure stable coins are coins that can make us calm when there is a dump for all crytpocrurrency .
So it's only natural that we have to have stable coins in every Binance wallet or exchange because as I said earlier this stable coin is the best opportunity to support cryptocurrency prices.
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I will definitely invest in stable coins when crypto winter comes to protect my assets. I don't like farming myself, so maybe I just stake my USDT on Binance for 5% APY and wait for the BTC Halving 2024 to buy the best cryptos.
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If the purpose for investment, I will never choose stable coins. I buy stable coins if I want to save my funds temporarily, or if I want to convert my crypto assets to fiats. While for a long term investment, I prefer to buy crypto coins that have high volatility but they are trustable. For example ETH, BNB, DOT, TRX, XLM, ADA, LINK, or LTC
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If we don't have stable coins, then of course we can't buy cryptocurrencies because for now we have to deposit using Fiat which is a very stable coin.
Stable coins should indeed be invested because I see this as the best opportunity to hold all cryptocurrencies, whether it's from a bear market or actually for investment or trading.
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In a sense, DAI is likely going to be the “true” stablecoin later on if USDT and USDC get tracked, and other coins that require assets to be burned to mint like UST from LUNA might also become more desirable.
If you’re building a big stablecoin bag or staking the stablecoin for yields DAI and UST might be the coins of choice
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Stable coin is similar with gold, guarantee our asset will not loss in high number but of course with small profit. This coin not interesting for people who like challenge but favorite for trader/ investor with safe method. 20% from our asset should become stable coin, will reduce high risk and also solution when high fees or busy network for transactions. Market is place for possibility and risk, stable coin is the right choice for both of it.
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Look at the very large stable coin market and all altcoins also need a stable coin and it is an honor for us to be able to maintain our assets in cryptocurrencies.
So we really should invest in stable coins because these stable coins will really be needed when the price of all cryptic dumps or drops so fast and it is a real and stable asset.
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IMHO it is not a good idea to invest in stablecoin but it is a good place to safekeep your crypto asset rather than putting on the bank to prevent money laundering.
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It's all the same as asking whether it is worth investing in the US dollar. Stable coins are just money and cannot be profitable for their holders. Of course, except for the case that the national currency, which secured the stablecoin, sometimes strengthens in the exchange rate in comparison with other currencies of the states. Stable coins are created as a buffer between cryptocurrency and fiat for the convenience of working with cryptocurrency.
True, for fiat currency backed crypto it is. However to me personally stablecoins with fiat are a paradox. Fiat currency is void of anything, so digitization further that nothing, I do not understand. Yes perhaps from a payment system perspective, not from a monetary one.
I personally like physical asset-based ones better, precious metals for instance.
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Stable coin is similar with gold, guarantee our asset will not loss in high number but of course with small profit. This coin not interesting for people who like challenge but favorite for trader/ investor with safe method. 20% from our asset should become stable coin, will reduce high risk and also solution when high fees or busy network for transactions. Market is place for possibility and risk, stable coin is the right choice for both of it.
Stablecoins based on precious metals have multiple advantages. Throughout the century they have proven to have better returns (physical gold etc), even more than stocks when calculated against the devaluation of the fiat currency. Owning precious metals via a digital layer should be appealing to a bigger mass of people. I wonder what will happen with supply, (fiat) prices etc when much more people own a/few gram(s).
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I don't think any good quality profit can be expected by investing in stable coins.Because the market price of stable coins is always the same for which the coins are called stable coins.However, if you buy coins other than stable coins, you can expect profit if their prices increase in the future.
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Investing in stablecoin is not good idea because it's not really a volatile coin unlike bitcoin, unless the platform has a earning passive which you can invest the stable coin and earn some a little percentage, it's a good way passive income.
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Look at the very large stable coin market and all altcoins also need a stable coin and it is an honor for us to be able to maintain our assets in cryptocurrencies.
So we really should invest in stable coins because these stable coins will really be needed when the price of all cryptic dumps or drops so fast and it is a real and stable asset.
If you are in the dollar zone and buy euros or, say, the yuan, this can hardly be called an investment. You need the currency of other countries for a specific practical situation when you can use them as a means of payment. The stablecoins play the same role. It is bought mainly for use as a means of payment, including for the purchase of various cryptocurrencies. Investing assumes that money is invested in a financial asset that, due to the increase in value, is able to bring profit. A stablecoin as a whole cannot be profitable, and therefore buying it cannot be considered an investment.
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Yes some times I want to invest in stable coin. Some times it is very important for cryptocurrency traders and cryptocurrency holders. When Market were unsustainable then we don't want to trade or hold because that time is very risky. That time better for stable coin. If that time we want to trade we will be losser so that time is for stable coin. So I told that stable coin is very good for investment sometimes.
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Yes some times I want to invest in stable coin. Some times it is very important for cryptocurrency traders and cryptocurrency holders. When Market were unsustainable then we don't want to trade or hold because that time is very risky. That time better for stable coin. If that time we want to trade we will be losser so that time is for stable coin. So I told that stable coin is very good for investment sometimes.
When the Market is fluctuate and unpredictable, we should invest in stable coin to keep your fund.
If you can predict the progress, you can buy more at potential coins.
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Investing in USDT can be profitable. Today there are platforms where it is possible to mine USDT. Stake on exchanges, cryptocurrency wallets.
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Stablecoins based on precious metals have multiple advantages. Throughout the century they have proven to have better returns (physical gold etc), even more than stocks when calculated against the devaluation of the fiat currency. Owning precious metals via a digital layer should be appealing to a bigger mass of people. I wonder what will happen with supply, (fiat) prices etc when much more people own a/few gram(s).
Very right: what will happen when billions of people can buy at ease a couple of grams of gold each, through some gold-backed coin?
If you are in the dollar zone and buy euros or, say, the yuan, this can hardly be called an investment.
Investing assumes that money is invested in a financial asset that, due to the increase in value, is able to bring profit. A stablecoin as a whole cannot be profitable, and therefore buying it cannot be considered an investment.
Yes and no.
When you invest in e.g. gold-backed Stablecoins, you are investing in gold, so that can be considered an investment.
In case of fiat-backed stablecoins, it's like you say.
With a caveat: if you are in a strong currency zone, buying a fiat-backed stablecoin ist no investment, as you say.
When an American buys Tether, we don't say he is investing his US dollars in Tether.
But, if you are in a high inflation zone, buying a stablecoin backed by a strong fiat currency can be considered an investement:
- I invested my money in USD. You?
- I invested mine in euros.
Those sentences under circumstances make sense.
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We can see a brief statement about the choice of stable coins and cryptocurrencies as below.
If we believe in cryptocurrencies, then we don't need to have stable coins in our wallets and stable coins are needed only for those who are afraid of cryptocurrencies that change every day.
For example, we have Bitcoin for our assets that are ready to be traded every day and we don't need to have stable coins because Bitcoin x Altcoins trading is very dominant in the market than stable coins.
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Those who invest in stablecoins, what do you expect from such investment? The % you get for sending your stables into some kind of earning programs are lower than 1%. Transaction fees and inflation kills all the profit from such actions. So why then you invest in stables?
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I always keep money in stable coins, because very often the cryptocurrency market falls and at these moments I have to urgently transfer money to stable coins, so it’s very good that there are so many stable coins in which you can safely store your money, and in general, most often I keep my money in either USDT or DAI.
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I always keep money in stable coins, because very often the cryptocurrency market falls and at these moments I have to urgently transfer money to stable coins, so it’s very good that there are so many stable coins in which you can safely store your money, and in general, most often I keep my money in either USDT or DAI.
I agree , stable coins are good to keep our money while yeh market is really volatile or has been predicted will dump
Convert our coins to stable coins and wait.
When dump, buy coins.
I think It's good way to do as trade or not investors.
Because the nature of crypto currency is always volatile.
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I don't think any good quality profit can be expected by investing in stable coins.Because the market price of stable coins is always the same for which the coins are called stable coins.However, if you buy coins other than stable coins, you can expect profit if their prices increase in the future.
I expect DEFI projects around stable coin, staking with reward after certain period. In case of ICO, stable coins can be sold at discounted price and have a short vesting period for investors. It is very important for every stable coin has entry into many exchanges with cases on high volume trade.
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Stablecoins are not meant to be invested for profit. In cryptocurrencies, they play the role of a buffer between them and fiat money or a reserve platform when you need to urgently withdraw funds from certain cryptocurrencies, but the time has not come to invest in other cryptocurrencies. Therefore, stablecoins should be regarded as digitized fiat, with the only difference that they are not owned by the state.
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Currently I only have stable coins in the local market because to stabilize the price sometimes the market is very extreme to see.
I feel stable coins are the most comfortable coins to hold because they are not subject to price increases and decreases from altcoins that have been circulating.
I'm also sure with accuracy we can make this stable coin multiply because stable coins are widely traded in various cryptocurrency markets.
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Does the government tax stable coin on exchanges, if it was not traded in a year?
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Currently I only have stable coins in the local market because to stabilize the price sometimes the market is very extreme to see.
I feel stable coins are the most comfortable coins to hold because they are not subject to price increases and decreases from altcoins that have been circulating.
I'm also sure with accuracy we can make this stable coin multiply because stable coins are widely traded in various cryptocurrency markets.
Yeah when crypto market is very extreme to see, I think we should save our assets in stable coins.
I think It's why we should invest in stable coins.
Always have stable coins to buy the coins when the dip.
I see many investors did it.
But several people also prefer in top coins to save their assets.
It depends on your confidence at crypto world.
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We should invest in stable when the market is high volatile and has been predicted will have big dump.
As member above said the market is very extreme to see.
To convert your assets to stable coins is the best way to do.
Keep hold stable coins until the market goes more stable again,
Although we know crypto is high volatile, But sometimes we will see extreme condition.
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Yes invest in Usdt and stake it at 10 b percent until we hit 20k back in October then we charge up for the next bull run u should be just dating positions now as it trades down and mostly sideways
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Indeed, we should invest in stable coins because these stable coins always pair with various cryptocurrencies in markets such as Binance, Huobi, Bittrex and Upbit.
I am only talking about myself who always have stable USDT coins on various exchanges because USDT is very simple to send, especially using the TRC20 blockchain whose transfer fees are very cheap when compared to USDT from OMNI and ERC20.
If we use the trc20 network, we can avail of a cheap transaction charge for either depositing or withdrawing. Also, stablecoins are good to use if you're sure that the altcoins or cryptocurrency you hold will drop in value in the market, and that's where stablecoins come in so that at least if the crypto we already hold falls, we're not included in the be affected by its collapse.
And when you see that the market price has gone down a lot, it's in your decisions that if you buy in the dip and then hold again for a long term, the battle here as an individual trader in cryptocurrency is just that simple.
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The long answer:
Yes, but possibly no. To begin with, it is important to clarify what a good financial investment means to us. For some, interest rates of 2% at your local bank is considered a good financial investment. To hedge funds, returns rise to about 20-25% before it is considered a good financial investment. For the sake of argument, let’s say that anything above what the market would give you at relatively low risk is considered a good investment.
Due to the fact that stablecoins involve diving into the highly volatile cryptocurrency space, the risks involved are bound to be higher — meaning that that base returns should reflect that. The simplest and least risky method for you to make a good return on your investment into stablecoins would be lending them out, for which you can make about 6% interest. This is significantly higher than what banks offer you, but not nearly as high (nor as exciting) as using them as trading assets to speculate.
So, if you are happy with 6% — stop reading here. But if you are feeling like this doesn’t tickle your risk seeking nerve endings enough, keep reading.
Betting on stablecoins can be highly profitable in the long run, but the key words here are “can” and “long.” “Can” implies that if you bet against the right macro trends, stablecoins will be a key catalyst to insure your risk in cryptocurrency. This is the “long” bet that most crypto investors are making. If a doomsday scenario occurs, central banks will be affected drastically by their governing country’s situation. This can cause fiat currencies to plummet, and your wealth along with it. But, if you have your wealth in Bitcoin, the idea is that you are protected against these black swan events. Stablecoins offer something in between, more or less the best (and worst) of both worlds — a hedge that gives you time and power to decide where you want your wealth to be allocated.
The long view in this case also depends on macro social, economic and geopolitical trends. As global digital transactions increase, so will the demand of stablecoins, and with it the number of tokens in circulation. If you leverage your stablecoins, depending on the underlying blockchain and applications available to you, by staking or providing liquidity then you can also earn some of the network’s transaction fees. The more demand for your stablecoins, aka transactions, then the more fees you can ultimately earn.
But once again, you are betting on both the “can” and “long” variables that are very much out of your control. There is also the problem that if a black swan event occurs, chances are that it can drastically cause a plummet in demand for collateral to which your stablecoin is pegged to. A new battery can plummet the demand of oil, making oil-based stablecoins worthless. Any good investor will tell you that in dire times you should diversify your investments, and maybe that is the correct approach to investing in stablecoins as well. On the low end, it may be worth setting aside more circulated stablecoins like USDT and lending them out for interest rates that are higher than banks. On the high end, maybe you can experiment with a wide array of digital assets that are pegged to different things to make sure you are protected against a single, doomsday causing black swan event. But then again, if Bitcoin is poised to replace the USD, what would be the coin in staking a stablecoin pegged against it like the USDT?
In summary, stablecoins can be a good investment if you are doing so for the right reasons. Short term speculation is probably not that reason, but investing in the right projects can net positive results in the short run. The more realistic scenario would be investing in the industry. In this case, investing in the growth of the pie rather than the size of your piece could be the smarter thing to do!
See our solutions, visit our website www.stably.io
More info: https://www.stably.io/post/should-you-invest-in-stablecoins/
In my experience invest in stable coin is worthless and not good profit. On other hand, you should invest in altcoins and meme coins you can buy and hold for a long term and short term. It give good profit and also do you own research
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In my opinion, yes, because to save huge losses by putting money in stablecoins, our money will be safe because stablecoins are based on the price of $, this is a very good breakthrough for investors to save their money from losses caused by unstable market prices. inside is fine.
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We should invest in stable when the market is high volatile and has been predicted will have big dump.
As member above said the market is very extreme to see.
To convert your assets to stable coins is the best way to do.
Keep hold stable coins until the market goes more stable again,
Although we know crypto is high volatile, But sometimes we will see extreme condition.
Investing in something implies further profit from the investment object. Therefore, this term is not suitable for working with stablecoins. Stablecoins should be treated like government fiat. After all, no one says that he invests in the dollar or the euro. Therefore, from this point of view, investing in stablecoins does not make sense.
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I think investing in stablecoins like USDT is mandatory, because there are many coins that are paired with it to make transactions, and I don't think there's anything wrong with investing in stablecoins. Let's just say that Sabelcoin is our digital money.
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meanwhile usdt is one of the main means of change on almost all exchanges, then for those who want to invest with little risk you can buy stablecoins to stake with low earnings yes but also low risks
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Stablecoins are a good investment to keep our assets like the current bearish period. it is useful to avoid losses. think of it as a deposit of funds to buy the assets we want
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My Advice you that keep your local fiat if you want to hold fiat and if you want to invest in crypto Bitcoin is the first option I know it's highly volatile but It's also have potential to recover but if any lose occur in other project then no one is responsible in the field of crypto instead of you.
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My Advice you that keep your local fiat if you want to hold fiat and if you want to invest in crypto Bitcoin is the first option I know it's highly volatile but It's also have potential to recover but if any lose occur in other project then no one is responsible in the field of crypto instead of you.
I believe that everyone who is on the forum is already aware of the risks associated with cryptocurrencies. Nevertheless, I personally keep almost all my savings in USDT. And now I’m exploring the opportunities and risks of staking stablecoins with Bittix. There are always risks. But they are minimal if we manage them.
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My Advice you that keep your local fiat if you want to hold fiat and if you want to invest in crypto Bitcoin is the first option I know it's highly volatile but It's also have potential to recover but if any lose occur in other project then no one is responsible in the field of crypto instead of you.
I believe that everyone who is on the forum is already aware of the risks associated with cryptocurrencies. Nevertheless, I personally keep almost all my savings in USDT. And now I’m exploring the opportunities and risks of staking stablecoins with Bittix. There are always risks. But they are minimal if we manage them.
how long have you been using the bot and what are the results? And what is the nature of your experience, positive or not?
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how long have you been using the bot and what are the results? And what is the nature of your experience, positive or not?
What can be the results? This is just a wallet for exchanging and cashing out cryptocurrency. And of course, staking stablecoins. it is not yet known whether they will want to replenish the balance in large quantities.
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What can be the results? This is just a wallet for exchanging and cashing out cryptocurrency. And of course, staking stablecoins. it is not yet known whether they will want to replenish the balance in large quantities.
where can i learn more about the platform? what is the comparability with operating systems and on what devices can I trade, as well as how many algorithms are used in bots and their ability to be reconfigured for a specific trading style?
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Those who invest in stablecoins, what do you expect from such investment? The % you get for sending your stables into some kind of earning programs are lower than 1%. Transaction fees and inflation kills all the profit from such actions. So why then you invest in stables?
Good question.
People expect from stablecoins to overcome the deficiencies of fiat currencies i.e. protecting themselves from inflation, losing purchasing power because of depreciation of their fiat currency.
Contrary to "unstable" cryptos, stablecoins aren't there in order to make people rich.
Earnings and gains aren't important in case of stablecoins.
For ordinary people the question is how to keep the purchasing power of their money.
The volatility of "unstable" cryptos runs against this goal: Volatility means going up and down.
Down means that while it goes downward the crypto holder loses purchasing power.
Ordinary people can't afford the volatility of "unstable" cryptos.
That's the reason why the adoption of cryptocurrencies as everyday money is still in its infancy.
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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)
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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
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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.
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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.
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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. ;)
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
Please don't forget that steiblicoins go down in value with any negative agenda. Has this ever happened with fiat currencies? Of course not. If you invest all your funds in one stablecoin - when it falls by -20%, what will you do?
The situation with UST has shown a bit of the opposite. Stability, there is absolutely no stability anywhere. Even in stablecoin, you should invest only what you are willing to lose. (so it will be much easier). And exactly which stablecoin to invest in is everyone's choice. Rebalancing even in this direction will not be superfluous.
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Please don't forget that steiblicoins go down in value with any negative agenda. Has this ever happened with fiat currencies? Of course not.
Hi NF
stablecoins that go down while fiat doesn't, are frauds.
A stablecoin representing $ (like USDT) must move exactly like $: $ goes up 3%, USDT goes up 3%, $ goes down 5%, USDT goes down 5% etc.
A stablecoin representing € must move exactly like €,
a stablecoin backed by Yen must move exactly like Y.
A stablecoin backed by gold must move exactly like gold.
A stablecoin backed by XYZ must move exactly like XYZ.
That's how stablecoins work.
For example, a gold-backed stablecoin. People ask, Where can I find a chart of the price of this stablecoin? Very easy I say, look at a gold price chart!
When a stablecoin says it is backed by x... but it moves differently from x ... it's a fraud...
For example, if a stablecoin says it's backed by x... then x goes down... and your stablecoin goes up... don't be happy... run! :D
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Hi NF
stablecoins that go down while fiat doesn't, are frauds.
A stablecoin representing $ (like USDT) must move exactly like $: $ goes up 3%, USDT goes up 3%, $ goes down 5%, USDT goes down 5% etc.
A stablecoin representing € must move exactly like €,
a stablecoin backed by Yen must move exactly like Y.
A stablecoin backed by gold must move exactly like gold.
A stablecoin backed by XYZ must move exactly like XYZ.
That's how stablecoins work.
For example, a gold-backed stablecoin. People ask, Where can I find a chart of the price of this stablecoin? Very easy I say, look at a gold price chart!
When a stablecoin says it is backed by x... but it moves differently from x ... it's a fraud...
For example, if a stablecoin says it's backed by x... then x goes down... and your stablecoin goes up... don't be happy... run! :D
I understand. Okay USDT + USDC still have a minimum of evidence that they are not nothing. But what about the others? I think everything is clear here. Don't forget that most of the creators of stablecoins can make dust in their eyes on the subject of collateral. They say one thing, but in reality it's nothing.
In this matter, trust is often manipulated. Do Kwon is an example of this. Who doesn't know his story, you can familiarize yourself - https://en.wikipedia.org/wiki/Do_Kwon
P.S. I adhere to the strategy to keep less funds on one wallet/in one stablecoin, etc. Diversification saves, in case of anything. But that doesn't mean you have to listen to me. It's just my strategy.
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I'm not sure why need to call it investment when you are just putting your money in stable coins? instead of having this then better to put your funds in staking at least there are opportunity to making percentage in right time.
though if you are just letting your money stays in stable coin just to wait for the right timing exchanging to your target crypto then yeah that's fine i think.
as what I've said recently , I am just using this as medium to buy or convert to my plan investments.
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Investing in stablecoins can be suitable for certain purposes, such as preserving value during market volatility or facilitating quick transactions. However, it's essential to understand that stablecoins are designed to maintain a stable value and may not provide the same potential for high returns as more volatile assets.
Before investing, consider your financial goals, risk tolerance, and the specific use case for stablecoins in your portfolio. Additionally, stay informed about regulatory developments and the stability of the stablecoin issuer. As with any investment, thorough research and careful consideration are crucial.
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I'm not sure why need to call it investment when you are just putting your money in stable coins? instead of having this then better to put your funds in staking at least there are opportunity to making percentage in right time.
Some people may be too afraid of the volatility, that's why they prefer to choose stablecoins. But if we really wants to have good investment, it should on the coins with high volatility. We must need to ensure we invest in trusted crypto coins. BTC, ETH, ADA, SOL, MATIC, DOT, XLM, TRX are better options if we really want to gain profits from crypto investment. Put money on stablecoins will have little chance to multiply. Although stablecoins prices although raise and drop (compared to fiats), the price change isn't very significant.
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I don't think any good quality profit can be expected by investing in stable coins.Because the market price of stable coins is always the same for which the coins are called stable coins.However, if you buy coins other than stable coins, you can expect profit if their prices increase in the future.
I agree with you and the reason is because no matter how long you hold it, the value is still going to be the same. However, individuals whose local currency is continuously declining against the US dollars, saving their funds in stablecoins is advisable.
For instance as at January 2023, 1USDT was N750. If I had N30,000,000 in a bank, it won't do me any good, but if I bought USDT with it, I'd have $40,000 USDT. 1 USDT is currently N1350, so the $40,000 USDT I bought in January would be N54,000,000, that's a N24,000,000 profit.
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instead of having this then better to put your funds in staking at least there are opportunity to making percentage in right time.
Staking is also risky and i don’t recommend that people put their funds in lending and earning platforms, stable coins is also risky because it can lose its peg and can be frozen by the issuers. I neither stake coins nor store my funds in stable coins, i only store funds in BTC and in a wallet that i control the keys, because not your keys, not your coins.
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Staking is also risky and i don’t recommend that people put their funds in lending and earning platforms, stable coins is also risky because it can lose its peg and can be frozen by the issuers. I neither stake coins nor store my funds in stable coins, i only store funds in BTC and in a wallet that i control the keys, because not your keys, not your coins.
Risks always exist in this market, and we need to accept them to find profits. Stablecoins have the risk of de-peg but they are still commonly used in the market, investors should choose the most reputable stablecoins to buy and hold.
The role of stablecoins in the crypto market is obvious, so it is difficult to advise users not to touch stablecoins or not to Earn or Stake them on CEXs. Many investors implement the DCA strategy and the unused stablecoins will be staked and generate additional profits during the holding process. I think this is also a good way to get more capital for DCA.
I don't encourage people to just buy stablecoins to stake and make a profit of about 6% per year. If the goal is just to make a profit of a few % per year, stablecoins are not the best choice in terms of returns and risks.
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stable coins is also risky because it can lose its peg
A stablecoin can't lose its peg as long as it's backed by what it's pegged to.
For es. a Yen pegged stablecoin can't lose its peg as long as it's 100% backed by Yen.
A gold pegged stablecoin can't lose its peg as long as it's 100% backed by gold.
A real estate pegged stablecoin can't lose its peg as long as it's 100% backed by real estate.
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There's no problem investing in stable coins for me if you are living the country that use USD as local currency its not worth investing in stable coin but if you are living in other country that use different currency you can able to make profit holding them for the long term. So it depends in your purpose and where you live.
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instead of having this then better to put your funds in staking at least there are opportunity to making percentage in right time.
Staking is also risky and i don’t recommend that people put their funds in lending and earning platforms, stable coins is also risky because it can lose its peg and can be frozen by the issuers. I neither stake coins nor store my funds in stable coins, i only store funds in BTC and in a wallet that i control the keys, because not your keys, not your coins.
I mean staking in legit platform mate because I have done this before and still doing such till now but of course don't expect high return yet more profitable than putting your money in stable coins that has no movement over the years.
we are in crypto world to gain and profit because if not then what are we doing here like those who investing in Stable coins.
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There's no problem investing in stable coins for me if you are living the country that use USD as local currency its not worth investing in stable coin but if you are living in other country that use different currency you can able to make profit holding them for the long term. So it depends in your purpose and where you live.
I'm sorry, I'm a little confused. Are you saying that I shouldn't invest in stablecoins if I don't live in America? ::)
Stablecoin is primarily about diversification. If you believe in it and keep all your savings in it, it's your right. I, on the contrary, allocate no more than 35% for purchase. I treat it as a high-risk asset. Because there is no stability anywhere. In case of (scam, etc.) it will be easier to accept losses than to keep 100% of your funds in one asset.
P.S. Don't think I'm trying to change your mind. 8)
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I agree with opinions above, that said stable coins for keep our assets when volatile.
Yeah , I always do it.
When crypto seems will drop , I convert my crypto to stable coins and buy the dip.
then I will hold until goes up.
So, stable coins are important and useful
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There's no problem investing in stable coins for me if you are living the country that use USD as local currency its not worth investing in stable coin but if you are living in other country that use different currency you can able to make profit holding them for the long term. So it depends in your purpose and where you live.
It depends BM
you are talking about USD-backed stablecoins, and you think that the USD is the most stable currency in the world.
If we talk about fiat currencies, look at the Singapore Dollar
(https://www.chartoasis.com/wp-content/uploads/2020/06/usd-sgd-historical-chart-chili.png)
People living in Singapore, investing in USDT they lost purchasing power.
If we are talking about not fiat currencies, look at gold
(https://cdn.knoema.com/infographics/Knoema_Data_Driven_Gold_and_Fiat_Money.png)
People living in the world, investing in USDT they lost purchasing power.
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it says investing in stablecoin, I don't invest but I have stablecoin, stablecoin for me is only an intermediary to save my assets when the value of the main coin weakens, it could be said to be a savior,
where stablecoin will be the main coin when buying all crypto coins, so it's natural to use it as an investment, but in the short term, in my opinion about this stablecoin
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I'm not sure why need to call it investment when you are just putting your money in stable coins? instead of having this then better to put your funds in staking at least there are opportunity to making percentage in right time.
Some people may be too afraid of the volatility, that's why they prefer to choose stablecoins. But if we really wants to have good investment, it should on the coins with high volatility. We must need to ensure we invest in trusted crypto coins. BTC, ETH, ADA, SOL, MATIC, DOT, XLM, TRX are better options if we really want to gain profits from crypto investment. Put money on stablecoins will have little chance to multiply. Although stablecoins prices although raise and drop (compared to fiats), the price change isn't very significant.
Actually that is also my point but if you are too afraid in volatility then you should not invested in market like this for the first time because what is the sense in investing here if you are putting your money in a currency that is not moving ? i mean the value will remain as is forever .
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Hi NF
stablecoins that go down while fiat doesn't, are frauds.
A stablecoin representing $ (like USDT) must move exactly like $: $ goes up 3%, USDT goes up 3%, $ goes down 5%, USDT goes down 5% etc.
A stablecoin representing € must move exactly like €,
a stablecoin backed by Yen must move exactly like Y.
A stablecoin backed by gold must move exactly like gold.
A stablecoin backed by XYZ must move exactly like XYZ.
That's how stablecoins work.
For example, a gold-backed stablecoin. People ask, Where can I find a chart of the price of this stablecoin? Very easy I say, look at a gold price chart!
When a stablecoin says it is backed by x... but it moves differently from x ... it's a fraud...
For example, if a stablecoin says it's backed by x... then x goes down... and your stablecoin goes up... don't be happy... run! :D
I understand. Okay USDT + USDC still have a minimum of evidence that they are not nothing. But what about the others? I think everything is clear here. Don't forget that most of the creators of stablecoins can make dust in their eyes on the subject of collateral. They say one thing, but in reality it's nothing.
Exactly.
That's why auditing companies exist :D
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Indeed, we should invest in stable coins because these stable coins always pair with various cryptocurrencies in markets such as Binance, Huobi, Bittrex and Upbit.
I am only talking about myself who always have stable USDT coins on various exchanges because USDT is very simple to send, especially using the TRC20 blockchain whose transfer fees are very cheap when compared to USDT from OMNI and ERC20.
A stable coin is a type of stable currency. we use it for trading purposes and many people invest their FIAT money in stablecoins to avoid currency inflation. because it is priced in dollars, it will carry the correct value no matter how high the value of our FIAT money is. for example last 2-3 years back 1 USDT was 80-85 BDT in my country but now inflation in my country is such that 1 USDT is now buy/sell at 125-127 BDT. so investing in stable coins is also a safe investment
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The long answer:
Yes, but possibly no. To begin with, it is important to clarify what a good financial investment means to us. For some, interest rates of 2% at your local bank is considered a good financial investment. To hedge funds, returns rise to about 20-25% before it is considered a good financial investment. For the sake of argument, let’s say that anything above what the market would give you at relatively low risk is considered a good investment.
Due to the fact that stablecoins involve diving into the highly volatile cryptocurrency space, the risks involved are bound to be higher — meaning that that base returns should reflect that. The simplest and least risky method for you to make a good return on your investment into stablecoins would be lending them out, for which you can make about 6% interest. This is significantly higher than what banks offer you, but not nearly as high (nor as exciting) as using them as trading assets to speculate.
So, if you are happy with 6% — stop reading here. But if you are feeling like this doesn’t tickle your risk seeking nerve endings enough, keep reading.
Betting on stablecoins can be highly profitable in the long run, but the key words here are “can” and “long.” “Can” implies that if you bet against the right macro trends, stablecoins will be a key catalyst to insure your risk in cryptocurrency. This is the “long” bet that most crypto investors are making. If a doomsday scenario occurs, central banks will be affected drastically by their governing country’s situation. This can cause fiat currencies to plummet, and your wealth along with it. But, if you have your wealth in Bitcoin, the idea is that you are protected against these black swan events. Stablecoins offer something in between, more or less the best (and worst) of both worlds — a hedge that gives you time and power to decide where you want your wealth to be allocated.
The long view in this case also depends on macro social, economic and geopolitical trends. As global digital transactions increase, so will the demand of stablecoins, and with it the number of tokens in circulation. If you leverage your stablecoins, depending on the underlying blockchain and applications available to you, by staking or providing liquidity then you can also earn some of the network’s transaction fees. The more demand for your stablecoins, aka transactions, then the more fees you can ultimately earn.
But once again, you are betting on both the “can” and “long” variables that are very much out of your control. There is also the problem that if a black swan event occurs, chances are that it can drastically cause a plummet in demand for collateral to which your stablecoin is pegged to. A new battery can plummet the demand of oil, making oil-based stablecoins worthless. Any good investor will tell you that in dire times you should diversify your investments, and maybe that is the correct approach to investing in stablecoins as well. On the low end, it may be worth setting aside more circulated stablecoins like USDT and lending them out for interest rates that are higher than banks. On the high end, maybe you can experiment with a wide array of digital assets that are pegged to different things to make sure you are protected against a single, doomsday causing black swan event. But then again, if Bitcoin is poised to replace the USD, what would be the coin in staking a stablecoin pegged against it like the USDT?
In summary, stablecoins can be a good investment if you are doing so for the right reasons. Short term speculation is probably not that reason, but investing in the right projects can net positive results in the short run. The more realistic scenario would be investing in the industry. In this case, investing in the growth of the pie rather than the size of your piece could be the smarter thing to do!
See our solutions, visit our website www.stably.io
More info: https://www.stably.io/post/should-you-invest-in-stablecoins/
Well stable coin are not profitable to their holders the best way for stable coins is by having them as an asset , investing in stable coins for profit is a high risk and mind you stable coins can be profit when you leave in country that don't use usd as currency example south Africa, in this way holding them for a long period of time once price increase then you got your profit seeing the dollar inflation this pass weeks those holding on usd that's are not From the Us are making lots of profit from this .
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it says investing in stablecoin, I don't invest but I have stablecoin, stablecoin for me is only an intermediary to save my assets when the value of the main coin weakens, it could be said to be a savior,
where stablecoin will be the main coin when buying all crypto coins, so it's natural to use it as an investment, but in the short term, in my opinion about this stablecoin
Your statement is a bit contradictory. You said it is for intermediary only but then you said it is natural to use stablecoins as investment.
In my opinion, it is no problem if someone wants to invest in stablecoins. If you checked the price of USDT against local currency, it sometimes can increase quite a lot. This is a chance of some people can earn profits. But if you only want to make it for intermediary, it is good as well. It is the right decision to keep our funds on USDT when the market is in red.
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If I have Bitcoin it means the price changes all the time but if I have a stable coin it means the coin has a price that doesn't change. So, it depends on the use of stable and unstable coins.
I need funds for my life every day, which means I also need stable coins to sell and send to credit cards.
It looks like I will use this stable coin for transactions via credit card after withdrawing from Bitcoin.
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If I have Bitcoin it means the price changes all the time but if I have a stable coin it means the coin has a price that doesn't change. So, it depends on the use of stable and unstable coins.
I need funds for my life every day, which means I also need stable coins to sell and send to credit cards.
It looks like I will use this stable coin for transactions via credit card after withdrawing from Bitcoin.
If you want to convert you coins at any time, it is better to have USDT. It is because the value won't change significantly. But if you hold Bitcoin, the price always fluctuates. When you want to sell the Bitcoin, the price can be above or below. The safer one is surely USDT because the price tends to stable. Bitcoin is only great for the investment, it means you won't convert it to fiats in a short time.
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As for my side ,if is table I will invest but I will consider is it registered?stable coins offering less volatility from the other crypto, however stable coins may be pegged to cash value they don't carry protection as money held in bank,tis mess we should also aware that there is always risks all times
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As for my side ,if is table I will invest but I will consider is it registered?stable coins offering less volatility from the other crypto, however stable coins may be pegged to cash value they don't carry protection as money held in bank,tis mess we should also aware that there is always risks all times
Maybe at this time, the safest stable coin is USDT, I always use stable coins when the market experiences a decline which is likely to be bearish for a long time I will store my coins in stable coins and wait for the bottom then buy potential coins again
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As for my side ,if is table I will invest but I will consider is it registered?stable coins offering less volatility from the other crypto, however stable coins may be pegged to cash value they don't carry protection as money held in bank,tis mess we should also aware that there is always risks all times
Maybe at this time, the safest stable coin is USDT, I always use stable coins when the market experiences a decline which is likely to be bearish for a long time I will store my coins in stable coins and wait for the bottom then buy potential coins again
USDT is the most popular stable coin and is in third place on the CMC, clearly this is a safe stable coin. I also always save my assets for trading there when I see the market has a downward trend, I concentrate my assets into USDT and wait for the market to rise again to buy some potential coins for trading