Re: Are stablecoins a definite solution against a bear market?
In a dreaded bear market that's lasts a long time, do you think that stablecoins are the definite solution for preserving one's investments?
So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.
What are your thoughts?
So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.
What are your thoughts?
I believe that stable coins are indeed a good way to keep their money in a long bear market. Moreover, stable coins make it possible to be sure that you will not lose your funds and they will remain in the same amount. In general, stable coins are now gaining momentum in the cryptocurrency market and are already in great demand among the community.