Hi, I'm a normie who finally got into crypto in nov 2021. But I don't get stable coins. When you sell your crypto, why don't you just convert back to fiat and put that fiat into your bank account right away? I worry about stable coins becoming un-pegged; this is a big concern for me; it's an extra worry that you don't have if you just convert back to fiat right away.
I can see using stable coins as a trading pair to purchase alts on a dex but I don't understand holding stable coins for longer periods of time like weeks, months or years as a store of value; to me this feels way too risky. What am I missing?
Might be different if you could do a lot of your every-day normal shopping with stable coins but right now you can't.
People use stable coins because withdrawing/sending the actual USD is a pain in the ass because of the banks. They ask the source of funds, want to do KYC on you, it is slow etc. So people use these *tethered* crypto instead because nobody (usually) ask any questions about their source and you can send and receive them very fast.
Some of the stable coins are indeed may go bankrupt in the future. You are right to be worried about it. So, as always you don't put there more than you could afford to lose. Stable coins are not 100% safe. They are fast, cheap and KYC-free for a reason.