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.
When a trader want think that the price of crypto will drop then the trader want to sell the crypto. In this case they make it stable coin as the price of stable coin will remain same. And the trader may buy again crypto when they want.
Regarding Bank:
Sending crypto to bank and bank to crypto is time sensitive and cost effective. Also, all the bank of all countries does not allow crypto. And many people do not want to use bank as they cant use fund of bank in any illegal meanings.