General Idea of Stablecoins & its Uses to Cryptocurrencies
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Assalam-o-Alaikum Steemians !
I'm @moneyster, a professional level Cryptocurrency investor and an analyzer. As usual, today I thought to share another Crypto-related experience with you. I hope this article will be considerably beneficial for all the Steemians in this community
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For the name, Stablecoin is not familiar to some Crypto Traders as they don't consider other Stablecoins except USDT. However, there are a lot of Stablecoins in addition to this USDT token. BUSD is another famous Stablecoin that we can use as an alternative to USDT.
However, even if we can call them as Stablecoins, we can't keep 100% hope on these tokens as they are always tokens. Because a huge money flow can change the value of these stablecoins as they desire. Personally, I have faced such incidents during my crypto journey.
If we choose the correct Stablecoin, we will be able to Trade for the long term. Otherwise, we will be unable to trade other cryptocurrencies as our main Crypto token is volatile.
As I said above, Stablecoins are valuable coins to Trade other cryptocurrencies. The most interesting thing about Stablecoins is they are not volatile when we compare them to other cryptocurrencies. Therefore, we can buy some Stablecoins and store them in a private wallet or exchange. In addition to that, we can earn some income as interest through these stablecoins when we stake them on some platforms such as exchanges.
There is another black side to these Stablecoins when we consider their history. Because even famous Stablecoins had changed their value to a very low level in the past. As an example, we can search on Luna Stablecoins. Therefore, we should understand that even stablecoins can break its value when it needs.
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Above we can see that the price of UST has traded in 1$ range for a certain time period to show it as a stablecoin. between the same range for several months. However, it took only a while to destroy the entire investors and their lives.
So, they can't recover this level again and we can't keep hope on this coin anymore. This is why we should not depend on a single stablecoin and we should not store our funds in a single stablecoin.
At the same time, as I said in my previous article, we should remember that all the indicators and strategies are not efficient completely as nothing we can find 100% efficient in the world. So, we should depend only on these strategies and indicators to confirm our trading opportunities.
I have studied the below-sourced articles to study these topics further, and I have explained all the above facts in my own words and experience.
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Twitter Shared
https://x.com/moneyster12/status/1751642506649907201?s=20
Great article you have shared here friend, I truly believe stable coin has a bright future here simply for it's ability to maintain stability even in highly volatile market which offers a measure of stability to the highly volatile asset class
Thank you very much for your valuable comment brother.
Thank you very much for your response brother