Have Stablecoins Changed the Game?

[Isicrypt202]

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.

[Mia Chloe]

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.

[_act_]

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.

[Isicrypt202]

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?

[Isicrypt202]

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.

[dkbit98]

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.

[Crwth]

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.

[Findingnemo]

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.

[Bobcrypto]

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.

[hugeblack]

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.

[dkbit98]

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''.

[MrSpasybo]

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.

[electronicash]

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.

[Mia Chloe]

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.

[Bobcrypto]

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.