Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Isicrypt202 on December 03, 2024, 05:03:30 PM
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It’ll be a great pleasure to hear from other traders concerning my worries on stablecoin pairs posing as game-changing. I’ll be honest, trading has always been a rollercoaster for me. I started with all the hype around altcoins, chasing those wild moves. But lately, I’ve found myself looking for something that doesn’t feel like I’m gambling every time I open a trade.
Stablecoin pairs have been popping up more, and I gave a few of them a try recently, pairs like BTC/USDE and SOL/USDE. It’s been…different. Not boring, but less nerve-wracking. The swings are smaller, sure, but it feels like there’s more control, especially during rough market conditions.
But here’s my dilemma, are these pairs actually worth my time? Are they the future of trading, or just another “option” that won’t really change much in the long run? Part of me likes the stability, but another part wonders if I’m missing out on better moves sticking to these.
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Trading crypto is usually about things like leverage, liquidity and volatility. In fact not only the crypto market but also Forex market too is affected and moved by these things too. The difference between different coins and even tokens especially from a trading perspective is actually their volatility and for stable coins you get a very low volatility since they are pegged.
Your base currency and your quote currency tells how volatile your trade will be. Now stable coins are mostly used since it's easier to calculate and comprehend when the quote currency is stable. You may get a messy chart if both currencies are very volatile.
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Stablecoin pairs have been popping up more, and I gave a few of them a try recently, pairs like BTC/USDE and SOL/USDE. It’s been…different. Not boring, but less nerve-wracking. The swings are smaller, sure, but it feels like there’s more control, especially during rough market conditions.
If you are talking about stable coin pairs, these are examples:
USDC/USDT
USDE/USDT
USDE/USDC
And other ones. If it is BTC/USDT or SOL/USDT, they are not stable coin but normal pairs and they can be very volatile.
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Trading crypto is usually about things like leverage, liquidity and volatility. In fact not only the crypto market but also Forex market too is affected and moved by these things too. The difference between different coins and even tokens especially from a trading perspective is actually their volatility and for stable coins you get a very low volatility since they are pegged.
Your base currency and your quote currency tells how volatile your trade will be. Now stable coins are mostly used since it's easier to calculate and comprehend when the quote currency is stable. You may get a messy chart if both currencies are very volatile.
Good point about volatility and messy charts with two volatile assets, it’s definitely easier to manage trades with a stablecoin as the quote currency. BTC/USDe and SOL/USDe have given me that smoother experience, but I wonder if these pairs will ever replace traditional ones like BTC/USDT, or just stay as alternatives. What do you think?
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Stablecoin pairs have been popping up more, and I gave a few of them a try recently, pairs like BTC/USDE and SOL/USDE. It’s been…different. Not boring, but less nerve-wracking. The swings are smaller, sure, but it feels like there’s more control, especially during rough market conditions.
If you are talking about stable coin pairs, these are examples:
USDC/USDT
USDE/USDT
USDE/USDC
And other ones. If it is BTC/USDT or SOL/USDT, they are not stable coin but normal pairs and they can be very volatile.
Yea thanks man I appreciate; pairs like USDC/USDT or USDE/USDT are true stablecoin pairs with minimal volatility. BTC/USDT or SOL/USDT are definitely more traditional and volatile. My focus has been on pairs like BTC/USDe because they bring some stability without completely losing the potential for market moves.
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But here’s my dilemma, are these pairs actually worth my time? Are they the future of trading, or just another “option” that won’t really change much in the long run? Part of me likes the stability, but another part wonders if I’m missing out on better moves sticking to these.
Stablecoins are fine if you are using them for trading short term, but they are terrible if you plan to hold them long term.
You are basically losing value all the time same like with fiat currency inflation, and you have much bigger risks of coins going to zero with some new government or EU regulations.
They are currently tolerated by regulators but I expect things to change a lot starting next year.
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Well, if it's considered established with good fund backing, I think as long as it's listed on good exchanges as well, why not? There are a lot of people trying to do it, and it's plausible. As long as you put money you can afford to lose, I think it's okay.
Just be careful and study the coin and developers of it.
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The stable coins serves this purpose since the beginning, it's used by most traders to trades in the volatile market. Trading with a stable coin pair make the analysis easier for anyone and we can just focus on the one particular coin instead of two which increases the potential profit making.
I don't know whether its changed the game but it made it easier and understandable for more people than before that brings more customers for the exchanges.
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But here’s my dilemma, are these pairs actually worth my time? Are they the future of trading, or just another “option” that won’t really change much in the long run? Part of me likes the stability, but another part wonders if I’m missing out on better moves sticking to these.
Stablecoins are fine if you are using them for trading short term, but they are terrible if you plan to hold them long term.
You are basically losing value all the time same like with fiat currency inflation, and you have much bigger risks of coins going to zero with some new government or EU regulations.
They are currently tolerated by regulators but I expect things to change a lot starting next year.
Your points is not well explained, the reason they called are stable coins is because the value remains stable, they don't fluctuate, but when you say they loose value after some time, depends on the fiats currency that they are being pegged to, especially to the US dollar which regularly loses values due to inflation.
Infacts, stable coins on the blockchain does not lose value like the faits, but because they are being pegged to some Fiats, like the US dollar, they tend to lose value too. In my opinion, it is more reliable to hold blockchain stable coins than holding Fiats that are bound to fall in value over times, and they are not decentralized.
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The stable coins serves this purpose since the beginning, it's used by most traders to trades in the volatile market. Trading with a stable coin pair make the analysis easier for anyone and we can just focus on the one particular coin instead of two which increases the potential profit making.
I don't know whether its changed the game but it made it easier and understandable for more people than before that brings more customers for the exchanges.
This is true, in the past, to sell Bitcoin, you had to choose a P2P merchant or some exchange, convert Bitcoin to dollars or local currency, and sell again when the price rose, and so on. fees were high, exchange was slow, and stablecoins were a solution to this problem.
It is wrong to believe that these stablecoins have more value than being tools to facilitate trading.
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It is wrong to believe that these stablecoins have more value than being tools to facilitate trading.
I agree.
It is weird to see so many people trading USDT, much more than Bitcoin, and they even hold USDT like they are holding fiat currencies in their bank accounts.
On positive side, if all people would trade Bitcoin only I don't think transaction fees would be this low, so stablecoins ahve one more ''use case''. ;)
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I agree.
It is weird to see so many people trading USDT, much more than Bitcoin, and they even hold USDT like they are holding fiat currencies in their bank accounts.
On positive side, if all people would trade Bitcoin only I don't think transaction fees would be this low, so stablecoins ahve one more ''use case''. ;)
I consider stablecoin a good tool for me to invest more effectively. During crypto winters, stablecoin is actually more valuable than BTC, and I hold USDT to wait for the opportunity to DCA rather than holding BTC throughout the market accumulation phase. I do not hate stablecoin, they were created to meet user needs, and their large trading volume confirms this.
I still clearly remember the market situation during the bullrun 2013, when stablecoin was not mentioned, and traders could only trade BTC/ALTs and BTC/USD. When USDT appeared, it made it easier for investors to determine profit/loss and provided a safe haven during market downturns. More investors joined the market, and the crypto market developed further.
Stablecoin also has another use case: helping people in many countries access USD more easily when their local fiat currency depreciates against the USD. Buying USDT through P2P is easier than buying USD directly from banks.
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yes you are missing the big moves particularly in BTC/USDT
its the reason why most are watching the wall observer because you normally just see the analysis of everyone there that gives you the signal. but if you are really into the safest side then the stablecoin pairs would be nice. you gotta ha e a large capital for that because a tiny pip will not be substantial gain is you only have few $ to trade.
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I consider stablecoin a good tool for me to invest more effectively. During crypto winters, stablecoin is actually more valuable than BTC, and I hold USDT to wait for the opportunity to DCA rather than holding BTC throughout the market accumulation phase. I do not hate stablecoin, they were created to meet user needs, and their large trading volume confirms this.
Sincerely speaking I've not really tried the dca method before infact what I pretty much do most of the time is buy when there's a pull back after that I leave it sitting most times. Stable coins have their own importance to be frank because there are sometimes you just cant do business based on the dynamic rate of bitcoin and so in a situation like this you have to make use of stable coins.
I've experienced same thing sometimes when trading or for some businesses too. Besides they are used as a pair with other crypto to verify value most times.
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It is wrong to believe that these stablecoins have more value than being tools to facilitate trading.
I agree.
It is weird to see so many people trading USDT, much more than Bitcoin, and they even hold USDT like they are holding fiat currencies in their bank accounts.
On positive side, if all people would trade Bitcoin only I don't think transaction fees would be this low, so stablecoins ahve one more ''use case''. ;)
I think everyone cannot trade Bitcoin, there are several reasons while some people prefer trading stable coins pairs than with Bitcoin or other altcoins pairs out there. Experiences, emotional filling are some of the big factors that hinder many people from trading. Cryptocurrency market is very volatile, it requires emotionally balanced individuals to trade crypto, but people try to avoid trading losses, many prefer trading stable coins even if the profit are very low, though it depends on capital, trading stable coins may be a remedy for emotional filling in my opinion.
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I think everyone cannot trade Bitcoin, there are several reasons while some people prefer trading stable coins pairs than with Bitcoin or other altcoins pairs out there. Experiences, emotional filling are some of the big factors that hinder many people from trading.
Trading any token or currency pair profitably is very possible as long as you have a proper Working analysis you are able to execute. Not everyone trades bitcoin for various reasons, and one of them is volatility. Bitcoin is way too volatile when trading to joke with when trading and improper management of leverage would likely end up badly.
Aside from all these, some traders have analysis that will not work most of the time if use for a crypto currency as volatile as bitcoin. Sometimes fundamental analysis too contributes to how profitable you will be in crypto trading.
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But here’s my dilemma, are these pairs actually worth my time? Are they the future of trading, or just another “option” that won’t really change much in the long run? Part of me likes the stability, but another part wonders if I’m missing out on better moves sticking to these.
Stablecoins are fine if you are using them for trading short term, but they are terrible if you plan to hold them long term.
You are basically losing value all the time same like with fiat currency inflation, and you have much bigger risks of coins going to zero with some new government or EU regulations.
They are currently tolerated by regulators but I expect things to change a lot starting next year.
I think coins like USDT or USDC or pretty much insane to hold.
I get that some may want the interest they pay but I can get 4.1% on the US dollar in my PayPal account plus the money is insured.
I can get around 5.2% on USDC at coinbase with no insurance.
So if I hodl 100,000 in usdc I make an extra 1,000 a year. Just not for me at all.
If you day trade on coinbase maybe you can do it all in usdc and pick up a bit of extra interest . But I do not bother.
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I think coins like USDT or USDC or pretty much insane to hold.
I get that some may want the interest they pay but I can get 4.1% on the US dollar in my PayPal account plus the money is insured.
I can get around 5.2% on USDC at coinbase with no insurance.
So if I hodl 100,000 in usdc I make an extra 1,000 a year. Just not for me at all.
If you day trade on coinbase maybe you can do it all in usdc and pick up a bit of extra interest . But I do not bother.
These basically are because of the fact that they are not volatile. If prices don't move you can't except either of a huge profit or huge loss same scenario comes up for those trading stable coins. You'll find out that they need way more leverage to pull off same mass of profit a meme coin trader would in a matter of minutes.
Most times I like to view stable coins as simply having the normal fiat dollar but in this case on a digital network I have full control over.
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Globally I think that USDT or stable coins have the opposite function to cryptocurrency because its algorithmic system stabilizes the price 1:1 with USD. While cryptocurrencies like Bitcoin if they have entered the market, the price will definitely go up and down and cannot be controlled by anyone.
The presence of USDT stable coins can change a game that used to be cryptocurrency whose price always changed every time and the presence of USDT cryptocurrency is actually stable and can also change the profits and losses from price changes in BTCxUSDT trading.
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Globally I think that USDT or stable coins have the opposite function to cryptocurrency because its algorithmic system stabilizes the price 1:1 with USD. While cryptocurrencies like Bitcoin if they have entered the market, the price will definitely go up and down and cannot be controlled by anyone.
The presence of USDT stable coins can change a game that used to be cryptocurrency whose price always changed every time and the presence of USDT cryptocurrency is actually stable and can also change the profits and losses from price changes in BTCxUSDT trading.
holding USDT is even better for an investor especially in the bear season because you get to maintain your wealth's value while holding cryptocurrency could be hurtful.
the algorithmic stablecoin is actually risky if you have heard of the LUNA project which their stablecoin was de-pegged in the defi platform. probably the reason why the algorithmic stablecoin isn't attractive to use anymore all because of that tragic LUNA project.
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holding USDT is even better for an investor especially in the bear season because you get to maintain your wealth's value while holding cryptocurrency could be hurtful.
You only have the illusion of maintaining anything, and I would never suggest anyone holding anything in stable coins long term.
First you are losing value because of constant inflation of fiat currencies, and than you have the risk of some stable coin getting banned, frozen or it can lose value because of some bug.
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The presence of USDT stable coins can change a game that used to be cryptocurrency whose price always changed every time and the presence of USDT cryptocurrency is actually stable and can also change the profits and losses from price changes in BTCxUSDT trading.
holding USDT is even better for an investor especially in the bear season because you get to maintain your wealth's value while holding cryptocurrency could be hurtful.
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The difficult choice position must be for those who become Bitcoin maxxis because they still prioritize Bitcoin hodL over USDT also because they must have a very concrete reason with USDT which has a centralized system and at any time the USDT can be frozen.
USDT is also not entirely bad because it is able to stabilize cryptocurrency prices when the market is down but the USDT must also be in our own wallet, don't let the USDT be hacked or frozen by CEO Paolo Arduino.
In my opinion, if one day the market enters Bearish, replacing it with USDT is a wise choice. Don't let our Bitcoin assets go down, our USDT disappears in the wallet or our USDT is frozen.
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Globally I think that USDT or stable coins have the opposite function to cryptocurrency because its algorithmic system stabilizes the price 1:1 with USD. While cryptocurrencies like Bitcoin if they have entered the market, the price will definitely go up and down and cannot be controlled by anyone.
The presence of USDT stable coins can change a game that used to be cryptocurrency whose price always changed every time and the presence of USDT cryptocurrency is actually stable and can also change the profits and losses from price changes in BTCxUSDT trading.
holding USDT is even better for an investor especially in the bear season because you get to maintain your wealth's value while holding cryptocurrency could be hurtful.
the algorithmic stablecoin is actually risky if you have heard of the LUNA project which their stablecoin was de-pegged in the defi platform. probably the reason why the algorithmic stablecoin isn't attractive to use anymore all because of that tragic LUNA project.
stable coins are indeed a way to save our asset portfolio when the market is down, we can choose USDT or USDC according to our respective preferences.
I also often do that when the market tends to go down, and it will likely take a long time to wait / When some potential coins drop in price, I will buy those coins.
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The presence of USDT stable coins can change a game that used to be cryptocurrency whose price always changed every time and the presence of USDT cryptocurrency is actually stable and can also change the profits and losses from price changes in BTCxUSDT trading.
holding USDT is even better for an investor especially in the bear season because you get to maintain your wealth's value while holding cryptocurrency could be hurtful.
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stable coins are indeed a way to save our asset portfolio when the market is down, we can choose USDT or USDC according to our respective preferences.
I also often do that when the market tends to go down, and it will likely take a long time to wait / When some potential coins drop in price, I will buy those coins.
Doesn't holding BTC also affect the portfolio when the price drops?
Only altcoin trading must always be paired with BTC, for example, you have a capital of 3 Bitcoins and 1 Bitcoin is used as capital for trading with Ethereum.
If Bitcoin drops in price, the 2 BTC are still 2 BTC and the 1 BTC drops in price because the value of Ethereum drops, for example, buying at a price of 2000 dollars and dropping to a price of 1000 dollars. Your BTC will definitely drop to 0.5 BTC, right?
One more thing, in this unclear and unpredictable cryptocurrency market, do you know when Bearish will occur?
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I also often do that when the market tends to go down, and it will likely take a long time to wait / When some potential coins drop in price, I will buy those coins.
Yeah aside from using them to trade, I sometimes use them to escape dynamic rates . That's because there are sometimes you just can't afford dump in the slightest though chances could have a pump instead and that's another scenario where stable coins come to play.
I would have mentioned fees too but it's been long since I felt a fee problem to be honest.