Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: hugeblack on April 23, 2024, 11:26:16 AM
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I can understand the motives for staking when the market is falling or there are no indicators that Bitcoin may increase, but I see an increasing interest in staking stablecoin, as with a quick search on social media or asking some of my trader friends, I was surprised that some of them are staking large amounts while the market is rising and can earns more by buying Bitcoin.
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I can understand the motives for staking when the market is falling or there are no indicators that Bitcoin may increase, but I see an increasing interest in staking stablecoin, as with a quick search on social media or asking some of my trader friends, I was surprised that some of them are staking large amounts while the market is rising and can earns more by buying Bitcoin.
Bull market is believed to be a profitable season whereby they can easily convert their other investments to USDT or any other before targeting making an investment on bitcoin when the market goes bearish, so i believe that their target is to hold their asset in stablecoin when we are on the bullrun and as the price remains more volatile as ever, then they will try to wait till they experience an entry point to invest in bitcoin when the market dumps, its a kind of strategy to me in which many investors used during seasons like this.
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I can understand the motives for staking when the market is falling or there are no indicators that Bitcoin may increase, but I see an increasing interest in staking stablecoin, as with a quick search on social media or asking some of my trader friends, I was surprised that some of them are staking large amounts while the market is rising and can earns more by buying Bitcoin.
Maybe they have seen charts like this
and understand what a crash of the stock market will mean for BTC
(https://i.ibb.co/s2rQJPv/1.png)
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I think some traders already make huge profits from the halving sentiment, and they want to keep their cash while waiting for the next buying opportunity. After let's say, Bitcoin goes down to a certain level, they will unstake their stablecoins and buy. It's not to say that there's no room for higher prices, but they simply already sell their portfolio and are happy with it.
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I can understand the motives for staking when the market is falling or there are no indicators that Bitcoin may increase, but I see an increasing interest in staking stablecoin, as with a quick search on social media or asking some of my trader friends, I was surprised that some of them are staking large amounts while the market is rising and can earns more by buying Bitcoin.
Stablecoin - the name itself speaks to their value: stable, meaning that investors can rest assured that their assets will be protected and will not evaporate in a market downturn. This is one of the most important needs of investors, which means they often hold a portion of their assets in stablecoins instead of other tokens.
According to your logic: in bullrun, BTC and ALTS will increase in price and generate more profits than the APR of stablecoin staking. However, not all tokens will increase in price and be more profitable than holding stablecoins. We hear that 90-95% of investors lose money, only 5-10% make a profit in the crypto market, so just holding stablecoins and staking is an easy way for investors to make a profit. In addition, in bullrun, the APR for stablecoins staking is also quite high, it can be up to over 10% and is really attractive. Ultimately, every choice depends on the investor's risk appetite.
My friends buy and hold USDT not to invest, but simply to hedge against the depreciation of local currency against $ and to earn higher interest rates than the bank. They hold USDT and stake USDT.
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I can understand the motives for staking when the market is falling or there are no indicators that Bitcoin may increase, but I see an increasing interest in staking stablecoin, as with a quick search on social media or asking some of my trader friends, I was surprised that some of them are staking large amounts while the market is rising and can earns more by buying Bitcoin.
Maybe they are aware of the correlation between BTC and Nasdaq,
and fear a Nasdaq crash
(https://i.ibb.co/KGVJHxC/1.png)
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According to your logic: in bullrun, BTC and ALTS will increase in price and generate more profits than the APR of stablecoin staking. However, not all tokens will increase in price and be more profitable than holding stablecoins. We hear that 90-95% of investors lose money, only 5-10% make a profit in the crypto market, so just holding stablecoins and staking is an easy way for investors to make a profit. In addition, in bullrun, the APR for stablecoins staking is also quite high, it can be up to over 10% and is really attractive. Ultimately, every choice depends on the investor's risk appetite.
That's why I asked for 10% guaranteed, but its risks are high, such as freezing your CEX account in exchange for more than 10%. By buying Bitcoin at the beginning of 2024 and selling it in mid-2025, the risks are lower, you can withdraw to your wallet and achieve a good return.
Maybe they are aware of the correlation between BTC and Nasdaq,
and fear a Nasdaq crash
If you have more data about the correlation between BTC and US stocks, please provide it. Many say there is a correlation, but I do not see it.
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According to your logic: in bullrun, BTC and ALTS will increase in price and generate more profits than the APR of stablecoin staking. However, not all tokens will increase in price and be more profitable than holding stablecoins. We hear that 90-95% of investors lose money, only 5-10% make a profit in the crypto market, so just holding stablecoins and staking is an easy way for investors to make a profit. In addition, in bullrun, the APR for stablecoins staking is also quite high, it can be up to over 10% and is really attractive. Ultimately, every choice depends on the investor's risk appetite.
That's why I asked for 10% guaranteed, but its risks are high, such as freezing your CEX account in exchange for more than 10%. By buying Bitcoin at the beginning of 2024 and selling it in mid-2025, the risks are lower, you can withdraw to your wallet and achieve a good return.
Everyone has their own strategy to make profits, 10% looks nothing at all from the crypto returns standards and that's too but someone who switched to cryptos from traditional investment like stocks and real estate the 10% is quite decent but the term guaranteed gives them a feel of assurance.
In reality we are risking 100% to get lesser than 10% meanwhile chances of hack, exit scam and any other unexpected event can cost our capital.
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Maybe they are aware of the correlation between BTC and Nasdaq,
and fear a Nasdaq crash
If you have more data about the correlation between BTC and US stocks, please provide it. Many say there is a correlation, but I do not see it.
You must admit, BTC's moves correlate with Nasdaq's moves
When one goes up the other goes up
one goes down the other goes down.
BTC is no hedge vs Nasdaq crash
(https://i.ibb.co/pXtyGbF/1.png)
... and now, comparing logarithmic BTC and Nasdaq charts, apparently it looks like this ...
(https://i.ibb.co/s2rQJPv/1.png)
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I can understand the motives for staking when the market is falling or there are no indicators that Bitcoin may increase, but I see an increasing interest in staking stablecoin, as with a quick search on social media or asking some of my trader friends, I was surprised that some of them are staking large amounts while the market is rising and can earns more by buying Bitcoin.
Stable coins keep money stable like a bank. However, the amount of bank interest is much lower than the bank interest and the income tax is deducted from it as well as inflation which reduces the value of money. However, other trusted platforms including Binance offer high interest rates for stablecoins, which is why many people are interested in staking stablecoins instead of cash out. and besides this there may be other reasons to hold stablecoins
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Everyone has their own strategy to make profits, 10% looks nothing at all from the crypto returns standards and that's too but someone who switched to cryptos from traditional investment like stocks and real estate the 10% is quite decent but the term guaranteed gives them a feel of assurance.
In reality we are risking 100% to get lesser than 10% meanwhile chances of hack, exit scam and any other unexpected event can cost our capital.
Yes, the majority of investors in the financial market lose money, so I believe that if given the choice, they would not refuse the opportunity to hold USDT to receive low but safe profits. The risk of account freezing will also come to investors in BTC and ALTS on CEXs, there is absolutely no difference. If investors don't want to take risks with CEXs, stablecoin holders can provide liquidity on DEXs. Tether and Circle can also freeze holders' accounts, but I'm not worried about that, I'm not a criminal ^^
We can think of investment scenarios that generate higher profits and are safe such as: buy and hold BTC + ETH, but in reality, most investors tend to choose other ALTS, even memecoins, so the majority of losers are still in the financial market. I have stablecoins in Simple Earn, I'm also DCA BTC + ALTS, I feel quite lucky to have stablecoins available in my account to buy many tokens at low prices when the market corrects. I rarely think that I should use all of my stablecoins to all-in when BTC is below $20K, I can't change the past, I can only focus on the present and the future.
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If you have more data about the correlation between BTC and US stocks, please provide it. Many say there is a correlation, but I do not see it.
You must admit, BTC's moves correlate with Nasdaq's moves
When one goes up the other goes up
one goes down the other goes down.
BTC is no hedge vs Nasdaq crash
(https://i.ibb.co/pXtyGbF/1.png)
... and now, comparing logarithmic BTC and Nasdaq charts, apparently it looks like this ...
(https://i.ibb.co/s2rQJPv/1.png)
here is another one
undeniable correlation with a leveraged stocks ETF
(https://i.ibb.co/k3mj8kW/btc.png)