Should you invest in Stablecoins?

[NikeFit_7777]

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.

[Peter90]

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! 

[NikeFit_7777]

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! 

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.

[bitterguy28]

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.

[Brewmaster]

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.

[I-Bit]

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.

[Sokani]

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.

[Z-tight]

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.

[MrSpasybo]

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.

[Peter90]

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.

[BitMaxz]

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.

[bitterguy28]

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.

[NikeFit_7777]

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. 

[elbans89]

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

[Peter90]

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



People living in Singapore, investing in USDT they lost purchasing power.



If we are talking about not fiat currencies, look at gold



People living in the world, investing in USDT they lost purchasing power.