Post
Topic
Board Altcoin Discussion
Re: Are stablecoins a definite solution against a bear market?
by
Abiky
on 23/01/2020, 02:32:40 UTC
Everything must have a risk, friend. As a day trader, stable coins are quite helpful when suddenly there are unexpected market movements, there are times when all prices suddenly go down, that's the right time to turn it into a stable coin, with the note that it is only temporary and for a relatively short period of time. So it does not come out of the market completely, when price movements have begun to look good and conducive it can be quickly converted into coins or other tokens as desired.

Agree. There's always a risk involved when trading crypto. After all, prices are extremely volatile across the market. Thanks to the introduction of stablecoins, people can obtain the convenience of the USD's stability and the censorship-resistant design of crypto. While the concept is still relatively new, cryptocurrencies that are pegged to the value of $1 USD serve as great alternatives to mainstream Fiat. At times, prices may go a little lower than $1 USD giving you the opportunity to "reap the profits" within a short time frame. Tether, bitUSD and several other stablecoins have a small fluctuation in price at times where the bear market is threating most cryptocurrencies' prices among popular exchanges.

Of course, we cannot rely on stablecoins in their entirety as they're not guaranteed to secure one's investment for the long term. For this, the real USD is the winner. You can simply cash out your crypto to USD with your bank account to completely secure your investment. If stablecoins decline in price within a short time frame, you can use the money from the bank to buy more coins and sell them once everything heads back to normal. Repeating the process should allow you to maintain your investment even when a bear market threatens the entire crypto space.

Nonetheless, with the introduction of a regulatory framework for stablecoins, it seems that they'll be here to stay for a very long time. The industry is ripe for innovation in every way possible. Once serious investors see stablecoins as a "safe haven" alternative to the real USD, they'll join the crypto space in mass. As a result, we'll see a higher market valuation for crypto faster than you could imagine. Hence, stablecoins are the most definite solution against a bear market for investors, traders, and the average Joe. Just my thoughts Grin