Crypto Should we invest in stable coins??

[Victorial]

Just some days ago, a friend of mine asked me to give him some directions concerning the crypto coins to buy. With the ongoing drop in the price of bitcoin and the altcoins like BNB, ETH, DOGE, TRON, LTC among others. It is no doubt the best time to buy and hold some coins ahead of the pump which could be this year or not going by the predictions of Bitcoin.

As a crypto trader and a knowledgeable one, I told him to buy some DeFi coins listed on many exchanges because I had the idea of some that will soon pump and which they eventually did.

Unknown to me, he bought 70,000 worth of USDC on Luno and some bitcoin and ethereum coins. I was perplexed by his attitude. Why would someone invest in a stable coin when there are numerous coins to buy and hold on to a short-term

This got me to ask if it is reasonable to invest in stable coins. USDC AND USDT are the two commonest stable coins.

 

[Vladv26]

You can't really call it an investment when you are buying stable coins because you won't make any profit at all or it will be extremely small even if you make any profit. There is a reason why they are called stable coins and that's because over long periods of time their price will always remain stable, at the same value, or better said at the value of the asset they are backed by, in most cases by US dollars. With that being said you should buy stable coins only if you want to keep your fiat money in cryptocurrency in order to use it to invest in other volatile coins that can produce you profit in the future

 

[Sotherefore]

From my understanding of cryptocurrency , I don't really think it is necessary for people to invest in stablecoin under normal circumstances because stablecoin generally won't even be profitable in anyway . if someone is really interested to invest in stablecoin there are so many things that could lead to that .

Sometimes a lot of people are always interested to invest in stablecoin just to maintain the value of their money especially those that don't even have the interest to invest in high volatile coin, because investing in stablecoin is just exactly like investing in the US dollars which will help maintain the value of their money when the economy of their country is depreciating.

Personally I will always prefer to invest in a coin with high volatility and great future potential because those are the ones that are likely to generate profit but investing in stablecoin is actually for the main purpose of maintaining the value of your money but not really for the main purpose of generating profit because the coin won't even give you a reasonable increase in price except it moves according to the price and the value of your currency compared to the US dollars .

 

[Jasmine]

If you check coin market cap, you will see there are 5 stable coins in the top 25 cryptocurrencies by market cap. While USDT and USDC coins might be the most popylar stable coins, there are a lot of stable coins, for instance Binance, the biggest crypto currency exchange platform, has its own stable coin called BUSD. Most of the stable coins are created by private companies, but there are also some completely decentralized stable coins, DAI, for example, Stable coins were basically launched to minimize the risk associated with the price fluctuation in the crypto market. For example, you spent $47,000 to buy BTC, but then the market starts going down and the value of your BTC becomes $46,000. You lost one thousand dollars. To minimize the risk, you convert $46,000 to a stable coin of your choice, USDT for example, Since stable coins are designed to remain stable, your coin value will remain the same even when BTC continues to go down. When you see BTC doing too deep, you use your $46000 stable coins to buy BTC. When you bought first time you had just one BTC for $47000, but this time you can buy more than 1 BTC with your funds.

 

[Yugocean]

More than 90% of my investment is in Stablecoins. Of course this is due to heavy losses I got from market crash, and in stablecoins I earn intrest without any risk.

Yet this is my decision, not a financial advice. You can invest in any crypto you like, just avoid over investing that you cannot afford.​

 

[minenovo]

I think it depends on the stablecoin. If it is trustworthy, sure. But not all new crypto projects can be trusted, so it's important to be careful about the projects one picks.

 

[blessingc]

Investing in stable coins is one of the safest and long term source of investment.
They provide the stability that is lacking in cryptocurrency, they are more dependable . Stable coins are mostly used by traders who want to keep their money invested in exchange, so they can easily go in and come out.

 

[eldavis]

I don't really have much ideas on the topic crypto currency, but personally I see no sense investing in stable coins, as the name implies, they are one of the most safest crypto coin out there, this is because their price value is tied to a particular currency. Investing in a state coin won't actually give you any profit unless you simply plan to use it as a means of saving your capital.

 

[Skysaint]

As at the time this post was made I think it is a wide idea for anyone to save his or her assets in a stable coin because that's the best strategy anyone could come up with during the bearish run. I did that myself, that is, I saved my investments in stable coins towards last year's ending and that single act saved me from incurring great losses.
But right now u don't think that will be a wise decision to make because the whole market is turning bullish and this is the right time to invest in potential coins that will yield you returns in your investments. Just imagine those that invested in GMT, they must have tripled their investment amount by now. So right now, there's no need for investing in a stable coin.