Quote from: hodllord on Today at 02:45:31 PM

Quote from: Normie_buys_crypto on January 08, 2022, 05:11:00 PM

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.

Because it's need to buy another crypto.

It s much more expensive to buy using your fiat directly to crypto by using third party payment processing system.
It is much more better if you buy a stable coin same value as your fiat, then buy crypto and if you want to sell then sell it for stable if your just planning
to buy another crypto again in no time.

There's no point of withdrawing your money everytime you sell and depositing from bank everytime you want to buy.

It's true that we use stable coins to store capital for trading, or use stable coins to store the profits we make from trading. Because this
can avoid us from the volatile crypto market, then it makes it easier for us to be able to buy another coins if the price drops. So it will cost
a lot of money if we make withdrawals to the bank too often. It is better to make it more effective to make withdrawals to the bank only
when we will need to buy something. If not, it's better to keep them in stable coins, so we can use them as trading capital. It can also be
if the profit we make is very large, and also we don't need money to buy anything. We buy coins that have strong fundamentals and hold
for the long term. That's much more profitable than saving in a bank, which is certain the value will continue to decline due to inflation.