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.
Stablecoin are basically a hedge against bear market. Or even better, a hedge against price change.
When someone tells me they want me to sell them some crypto for fiat, i sell them USDT. Because i don't have to worry about price change.
Then that person uses USDT to buy whatever crypto they like
Also, most OTC crypto->fiat trades are using stablecoins