Should you invest in Stablecoins?

[MUGNIA]

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

[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.

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 .

[Peter90]

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.

Exactly.
That's why auditing companies exist 

[JISAN]

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

[Gideon99]

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 .

[I-Bit]

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.

[erus]

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.

[I-Bit]

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.

[Jun]

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

[legend45]

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

[dekafee79]

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