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?
When we talk about the bear market, then of course, many investors may simply not be able to withstand and sell their cryptocurrencies, moreover, all this is a hello to loss. The option of saving funds using stable coins may well help in this. Of course, a small fluctuation in the prices of stable coins is not as scary as a drop in the prices of cryptocurrencies in general. I also studied stable coins and they showed good stable value in the market.