Welcome to BeerMoneyForum.com - BIGGEST MAKE MONEY FORUM ONLINE

[Razor1911]

The question may sound a odd to people who has better understanding of how crypto market works. But since I am a newbie in the crypto world (Actually using crypto wallet for last couple of years, but not sure about how it works), hence I am exploring new things daily in order to adapt myself with the market.

I have come across with the Stable coin like USDT and USDC. Thes are called stable coins because these are stable at mostly a fixed price. But why do their value doesn't increase, As like other crypto currencies? Can anyone please explain to me.

 

[SCAMEXPOSER]

They are more like safe zone coins which you can always retire to when trading , they have fixed value of $1 and they are majorly used to convert to fiat currencies.

 

[Razor1911]

Stable coins are directly tied to the value of some fiat currencies, for example Us dollaris linked with USDT.

That measn the underlying asset of that stable coin will decide the price. But then also sometime it shows +4% even if the price remains $1. Why that for?

 

[SCAMEXPOSER]

There are sometimes it slightly increase to $1.05 or decrease to $0.95 which I guess is connected to the trading or exchange of US dollars to some popular fiat currencies.

 

[Razor1911]

There are sometimes it slightly increase to $1.05 or decrease to $0.95 which I guess is connected to the trading or exchange of US dollars to some popular fiat currencies.

That's even more confusing. If it is a stable coin, and it's underlying asset is USD, the how come it can go up or down. And how thus the value increases or decreases if no one is trading with it.

 

[Razor1911]

The intrinsic value of a dollar is $1, but the face value or market value may vary, this will also reflect to the USDT directly.

I don't what these values are. But one thing is clear if I even notice USDT higher or lower than $1 then I will trade opposite to the price. Becaus the market will again push it towards $1.

 

[AudraMiller]

The question may sound a odd to people who has better understanding of how crypto market works. But since I am a newbie in the crypto world (Actually using crypto wallet for last couple of years, but not sure about how it works), hence I am exploring new things daily in order to adapt myself with the market.

I have come across with the Stable coin like USDT and USDC. Thes are called stable coins because these are stable at mostly a fixed price. But why do their value doesn't increase, As like other crypto currencies? Can anyone please explain to me.

Stable coins such as the ones that you have listed here are tied into teh value of the us dollar, so as long as they exist they will fluctuate around that price and value. It is a great way to ensure safety and value of your investment.

 

[Razor1911]

So

Stable coins such as the ones that you have listed here are tied into teh value of the us dollar, so as long as they exist they will fluctuate around that price and value. It is a great way to ensure safety and value of your investment.

So suppose the price of the USDT has gone down to 0.99 USD. That means If I buy at that price, the price will sure shot go again to 1 usd . In that wat I can earn 1% profit. Is thar works like that?

 

[AudraMiller]

So

So suppose the price of the USDT has gone down to 0.99 USD. That means If I buy at that price, the price will sure shot go again to 1 usd . In that wat I can earn 1% profit. Is thar works like that?

Pretty much that is correct. The price will fluctuate around the one dollar value and so if you are able to buy and sell you can use for trades in small percentages, but in my opinion there is no room for it going too high because it is linked to the dollar value.

 

[BusyCat]

Because they are created in the intention of being stable and resemble USD value , like 1 USDT crypto = $1 , these stablecoins are required in crypto investments so we can make use of them while trading cryptos to earn profit , instead of using fiat wallet.

 

[SCAMEXPOSER]

Because they are created in the intention of being stable and resemble USD value , like 1 USDT crypto = $1 , these stablecoins are required in crypto investments so we can make use of them while trading cryptos to earn profit , instead of using fiat wallet.

It is even possible that without stablecoins trading may be difficult for people because when they want to stop trading no coin to use for that and not all Exchange platforms or wallets support fiat currencies.

 

[BusyCat]

It is even possible that without stablecoins trading may be difficult for people because when they want to stop trading no coin to use for that and not all Exchange platforms or wallets support fiat currencies.

Yeah stablecoins are mandatory to trade effectively and to get profits. I prefer USDT trc20 as a stablecoin , because of its lowest fees everyhwere.

 

[Razor1911]

Pretty much that is correct. The price will fluctuate around the one dollar value and so if you are able to buy and sell you can use for trades in small percentages, but in my opinion there is no room for it going too high because it is linked to the dollar value.

I am trader for 8 years. I would surely try tk endeavor this strategy. I will trade with it. Let's see what I am able to make out of it. Even if per trade I can manage 0.5% also, A single order per day will give me 15% return per month. That's more than enough for me. Let's check it.

 

[Yugocean]

Cryptocurrency is divided into two parts related to the risk -
Riskycurrency - These currencies go up and down in the market, for ex Bitcoin, Litecoin, Dogecoin etc.
Stablecurrency - This is fixed to a value, it won't go up or down and will remain at a place.

I saved half of my crypto deposit in the latest fall, because that half was in stable coin.

 

[Razor1911]

Cryptocurrency is divided into two parts related to the risk -
Riskycurrency - These currencies go up and down in the market, for ex Bitcoin, Litecoin, Dogecoin etc.
Stablecurrency - This is fixed to a value, it won't go up or down and will remain at a place.

I saved half of my crypto deposit in the latest fall, because that half was in stable coin.

I do understand that but what I am aksing is why such happens. Why the price of crypto fluctuate but not that of stable coin. I also understand now that this happens due to the undelying asset which is dollar, as it mostly remains fix.

 

[SCAMEXPOSER]

Cryptocurrency is divided into two parts related to the risk -
Riskycurrency - These currencies go up and down in the market, for ex Bitcoin, Litecoin, Dogecoin etc.
Stablecurrency - This is fixed to a value, it won't go up or down and will remain at a place.

I saved half of my crypto deposit in the latest fall, because that half was in stable coin.

It means you're very lucky because very likely when the market is recovered you will definitely make gains until the market recover I am in loss.

 

[Razor1911]

It means you're very lucky because very likely when the market is recovered you will definitely make gains until the market recover I am in loss.

Yes, I think stable coine are the best place for putting your money for safety. Not only because it doesn't move with the market, many wallet even paying good amount of interest over them. You can use of the stablecoins for no risk gain.

 

[Yugocean]

I cannot recover the $300 I lost, but kept my stablecoin for interest, it is not much but simply good return like bank interest.
Stablecoin is helpful to avoid heavy loss, those who do not have, they should also convert a part of their currency to stablecoin, but avoid ERC tokens, their transaction fees will result in more loss than market fall.

 

[Razor1911]

I cannot recover the $300 I lost, but kept my stablecoin for interest, it is not much but simply good return like bank interest.
Stablecoin is helpful to avoid heavy loss, those who do not have, they should also convert a part of their currency to stablecoin, but avoid ERC tokens, their transaction fees will result in more loss than market fall.

ERC network chain I think developed for heavy transaction. If you execute small transaction with this, then surely the fees is too high here and that will eat up your balance. Better use TRC network.

 

[AudraMiller]

I am trader for 8 years. I would surely try tk endeavor this strategy. I will trade with it. Let's see what I am able to make out of it. Even if per trade I can manage 0.5% also, A single order per day will give me 15% return per month. That's more than enough for me. Let's check it.

Putting it in that perspective is definitely showing a good potential profit from a minimum risk investment and i think that it could work. You may have to have patience in some cases however as the price can take some time to change by a cent, but it is definitely something worth venturing into.