Why do you need stablecoins?

[Suba]

Stablecoins are a type of cryptocurrency that is created and backed by other assets such as fiat currency, gold, cryptocurrency, shares etc. Although there are also uncollateralized stablecoins which we know as algorithmic stablecoins (for example UST), the value of UST is maintained by algorithms and smart contracts and stability is also maintained by a centralized mechanism so it is possible that uncollateralized stablecoins will fluctuate. Basically, stablecoins with collateral from other assets will be very useful for their users,

 

[Kirubel]

We use stable coins in order to hold our money for some time without any risk of losing the price of the coin and losing any money, since the coin is stable and have no fluctuations we don't have to worry that the price of the coin drops and we lose our fund unlike other crypto coins.

 

[deucher]

I most often use USDT because for me it is one of the most reliable, and I always convert cryptocurrency to stablecoins in order to be able to withdraw to fiat funds

 

[mrki444]

I keep some my crypto in it. This way it don't lose value and I can sell it very easy in exchange store. I also buy USDT in same store and later convert it into tokens I want.

 

[Fidelia]

If the main purpose of keeping crypto is as a protection against inflation, it is better to keep it in stable coins where volatility won't catch up with it.

 

[Suba]

The price of a stablecoin will always follow the value on which it is pegged. If you use fiat money (USD), if the value of the USD falls or inflation occurs, the value of the stablecoin will also fall. So the main benefit of stablecoins for crypto investors is also as a substitute for fiat money.

 

[riberet19]

Stablecoins are good when you trade, if you are an investor you don't really need them at all, I don't use them if it's not for trading, I just buy and sell in fiat when necessary.

 

[Suba]

Stablecoins are good when you trade, if you are an investor you don't really need them at all, I don't use them if it's not for trading, I just buy and sell in fiat when necessary.

I agree with you, we often use stablecoin pairs in trading, likewise in investing we can swap a crypto coin for a stablecoin either USDC or USDT when the price is high, and we will buy back if the price goes down.

 

[Fidelia]

For international payments in dollars, stable coins provide a cheaper avenue to settle them compared to fiat. That helps to escape the volatility of the altcoins.

 

[Suba]

For international payments in dollars, stable coins provide a cheaper avenue to settle them compared to fiat. That helps to escape the volatility of the altcoins.

You are right, not only for global payments, but also for transferring money abroad, especially for parents who have children studying abroad at a cheaper cost compared to fiat money transfers from banks.

 

[Nomad]

When I am trading, I try to pair with stable coin. When I want to protect against market risk, I also use stable coin.

 

[King Belieal]

You are right, not only for global payments, but also for transferring money abroad, especially for parents who have children studying abroad at a cheaper cost compared to fiat money transfers from banks.

The challenge is that the number of institutions that would accept a stable coin ahead of fiat is very limited. Transfering stable coins has a higher fee though but not as much as transfering fiat currency.

 

[Suba]

The challenge is that the number of institutions that would accept a stable coin ahead of fiat is very limited. Transfering stable coins has a higher fee though but not as much as transfering fiat currency.

I mean. not transfer to an institution but to a person directly or to his child and he can exchange it for fiat money on the crypto exchange