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.
Stable coins has been a way to cut down the long process that traders would have to go through while trading crypto and fiat. If you’re someone who is into day trading, then you would definitely know the importance of having to make use of stable coins, they make the process to be more easy for you while trading, because you wouldn’t have to be withdrawing to your bank all the time and then depositing back to the exchange and converting it. That’s quite a long process, so simply just move it to stablecoin and after that you can also easily move it back whenever you want. Also it’sfun to hold stablecoin. But as for someone who wants to Hodl, then you can be withdrawing to fiat whenever you are ready to withdraw, that would be better.