Bear market and stablecoins

[Ota.collins]

As the market continues to decline, it’s wise to accumulate stablecoins like USDT or others in preparation for dollar-cost averaging (DCA) when the time is right, especially since we appear to be in a bear market.

However, it’s important to be cautious about the stablecoins you choose for storing your funds. USDT, being the largest stablecoin, is currently facing several challenges. which brings the need to find another better option. Additionally, during bear markets, many stablecoins tend to depeg, which can lead to significant losses for holders.

In contrast to traditional stablecoins, which are pegged 1:1 to fiat reserves, deUSD is fully collateralized by a mix of crypto assets and utilizes a delta-neutral strategy. This makes it a solid option for storing funds while the market continues to decline. deUSD currently has a market cap of around $290M and is listed on Bitget.

I believe there are other stable coins worth researching, and you can share the ones you feel are good choices.

[covfefe_]

As the market continues to decline, it’s wise to accumulate stablecoins like USDT or others in preparation for dollar-cost averaging (DCA) when the time is right, especially since we appear to be in a bear market.

However, it’s important to be cautious about the stablecoins you choose for storing your funds. USDT, being the largest stablecoin, is currently facing several challenges. which brings the need to find another better option. Additionally, during bear markets, many stablecoins tend to depeg, which can lead to significant losses for holders.

In contrast to traditional stablecoins, which are pegged 1:1 to fiat reserves, deUSD is fully collateralized by a mix of crypto assets and utilizes a delta-neutral strategy. This makes it a solid option for storing funds while the market continues to decline. deUSD currently has a market cap of around $290M and is listed on Bitget.

I believe there are other stable coins worth researching, and you can share the ones you feel are good choices.

No doubt there are better options to USDT which are transparent and fully collateralized but the problem with trading in crypto is the largest pair now is coins against USDT. Exchanging USDT to some other USD coin and storing it just to turn it back into USDT before buying would both be hassle and expensive. There are a few options like USDC but they have very limited pairs and the transaction volume is very low.
Whether we like it or not but USDT has became an integral part of trading and if it fails, it would devastate the crypto market.

[el kaka22]

I would say, since we are already down, accumulating USDT makes no help at the moment. I mean if you have money, then don't go with another form of the same money, how would that help? The better way would be just focusing on how to get a better deal with bitcoins at the moment.

So I would suggest if you could buy up some bitcoins at this moment, that would be a lot better. I understand that some may fear that it will drop down even more, but how much more could it go down, not like we are going to see 30k soon. So the better approach would be using your money to buy bitcoin instead of buying stablecoins at the moment. Of course this is just what I believe, and I could be wrong and it could drop a lot more, then I would be making a mistake.

[passwordnow]

However, it’s important to be cautious about the stablecoins you choose for storing your funds. USDT, being the largest stablecoin, is currently facing several challenges. which brings the need to find another better option. Additionally, during bear markets, many stablecoins tend to depeg, which can lead to significant losses for holders.

They're always on the hot seat and this isn't new with what you're saying. They've survived all of that and every other stable coins have their own issue and challenges as well. And about it, I can't remember that it has depegged to dollar value, maybe for a few cents on 2017 but that's all.

In contrast to traditional stablecoins, which are pegged 1:1 to fiat reserves, deUSD is fully collateralized by a mix of crypto assets and utilizes a delta-neutral strategy. This makes it a solid option for storing funds while the market continues to decline. deUSD currently has a market cap of around $290M and is listed on Bitget.

I believe there are other stable coins worth researching, and you can share the ones you feel are good choices.

You mean this?
https://coinmarketcap.com/currencies/elixir-deusd/
It's still quite new and it's harder to trust stable coins that are quite new. If I've got other options then I'd pick DAI and USDC after USDT but prolly not this deUSD. It sounds even DEpeggedUSD. Although that's a childish reasoning but still a no.

[Ota.collins]

However, it’s important to be cautious about the stablecoins you choose for storing your funds. USDT, being the largest stablecoin, is currently facing several challenges. which brings the need to find another better option. Additionally, during bear markets, many stablecoins tend to depeg, which can lead to significant losses for holders.

They're always on the hot seat and this isn't new with what you're saying. They've survived all of that and every other stable coins have their own issue and challenges as well. And about it, I can't remember that it has depegged to dollar value, maybe for a few cents on 2017 but that's all.

In contrast to traditional stablecoins, which are pegged 1:1 to fiat reserves, deUSD is fully collateralized by a mix of crypto assets and utilizes a delta-neutral strategy. This makes it a solid option for storing funds while the market continues to decline. deUSD currently has a market cap of around $290M and is listed on Bitget.

I believe there are other stable coins worth researching, and you can share the ones you feel are good choices.

You mean this?
https://coinmarketcap.com/currencies/elixir-deusd/
It's still quite new and it's harder to trust stable coins that are quite new. If I've got other options then I'd pick DAI and USDC after USDT but prolly not this deUSD. It sounds even DEpeggedUSD. Although that's a childish reasoning but still a no.

Lol. Yeah, USDC and DAI are also good picks.

[iBaba]

I would say, since we are already down, accumulating USDT makes no help at the moment. I mean if you have money, then don't go with another form of the same money, how would that help? The better way would be just focusing on how to get a better deal with bitcoins at the moment.

So I would suggest if you could buy up some bitcoins at this moment, that would be a lot better. I understand that some may fear that it will drop down even more, but how much more could it go down, not like we are going to see 30k soon. So the better approach would be using your money to buy bitcoin instead of buying stablecoins at the moment. Of course this is just what I believe, and I could be wrong and it could drop a lot more, then I would be making a mistake.

I understand and appreciate your thoughts but I think it's beyond that. Everyone has a belive in which they are entitled and their decisions are greatly influenced by their knowledge and thoughts about bitcoin. Right now, bitcoin is very unstable and going up and down within the range of 80 something dollars. It hasn't really seen any significant drop nor any significant growth.

It will be safer to someone else to keep their funds in a stablecoin for now so as to see the performance of the bitcoin in the meantime, but to another person, it could mean something different, for instance, it could mean them leaving their funds on bitcoin and just watch how the crypto market trend moves. For me, I left mine on bitcoin and just watch the funds grow.

[DeathAngel]

I don’t think we are in a bear market. We are witnessing a pause in the bullish narrative after Trump first got in though. Potentially the bottom for Bitcoin is in now though which is of course, a good sign for most Altcoins. So yes, keeping funds in USDT is a good idea at the top of a bull market in preparation for the bear market but not yet, we will still go much higher I think. USDT & USDC are my choices.

[passwordnow]

You mean this?
https://coinmarketcap.com/currencies/elixir-deusd/
It's still quite new and it's harder to trust stable coins that are quite new. If I've got other options then I'd pick DAI and USDC after USDT but prolly not this deUSD. It sounds even DEpeggedUSD. Although that's a childish reasoning but still a no.

Lol. Yeah, USDC and DAI are also good picks.

Yeah, they're good picks no doubt. And I hope that made me laugh because of the DEpgUSD that I've mentioned. 

I don’t think we are in a bear market.

I also think that we are not yet in a bear market. This bull market still has a long way to go compared to the bear market that many have been thinking that we're already in it. I think that if Bitcoin goes down below $60k or more than 50% of its ATH ($109K) then I'd believe that we're already in. But not yet and hopefully won't be until this year ends because cycle wise, 2026 is the start of it.

[nelson4lov]

Guys let's not forget that exchanges are beginning to delist USDT because it's not complaint with EU laws and regulations. It's not like USDC is a stellar alternative to switch to so right now, I would recommend anyone looking to allocating some or most of their portfolio to stablecoins should be careful and cautiously pick one.

I don't think any stablecoin have held as strong as USDT. Sad to see it being delisted across the board.

[X-ray]

when it comes to stablecoin, trading volume matters, apparently, deUSD is lacking in that, 14 million dollar 24h trading volume just seems too illiquid for most of use case, one big sell order by whales could already depeg your stablecoin doesn't matter if it's backed by both t-bill or delta neutral strategy what matter is enough trading volume to contain big orders.

for that I'd stick with traditional USDC, knowing its already MiCA compliant and no need to worry about the reserve being managed by less reputable entity.

[Cryptohygenic]

As the market continues to decline, it’s wise to accumulate stablecoins like USDT or others in preparation for dollar-cost averaging (DCA) when the time is right, especially since we appear to be in a bear market.

However, it’s important to be cautious about the stablecoins you choose for storing your funds. USDT, being the largest stablecoin, is currently facing several challenges. which brings the need to find another better option. Additionally, during bear markets, many stablecoins tend to depeg, which can lead to significant losses for holders.

That is right, accumulating your funds on the USDT is a good one but a due at the bear times so we can always stabilize the values of our assets at the market dip until we feel set to bump in at a certified time and then rollover to our volatile coins in readiness to increase our values at a pump season. But Op, I have stacked much of USDT and have not had valuable issues with it so I don't what challenges you talked about it being faced. Is there also a better stable coin you can recommend better than the USDT? Maybe you should tell us as we learn every day and information is power.

[tygeade]

In contrast to traditional stablecoins, which are pegged 1:1 to fiat reserves, deUSD is fully collateralized by a mix of crypto assets and utilizes a delta-neutral strategy. This makes it a solid option for storing funds while the market continues to decline. deUSD currently has a market cap of around $290M and is listed on Bitget.

I believe there are other stable coins worth researching, and you can share the ones you feel are good choices.

When trying to stay on stablecoins is a good idea during bear so that you could buy cheaper when it bottoms. The risk of doing this is that you are going to end up with something much worse for the time being, because you are not going to get the best, and that will be the problem and what if you miss the bottom?

Like right now, we are seeing that we have bottomed out at around 80k and then we have gone up, if you missed that then you are making a bigger issue and you are going to make a mistake and that won't be as easy as you wish. This is why the best way to improve would be just making sure that you deal with something that has a buying point, make sure you buy at the bottom if you want to do this and buy later.

[TastyChillySauce00]

a really small market cap for stablecoin which exposes to low liquidity risk and their latest TGE makes me rethink twice about trusting the stablecoins though.

don't know if the market cap grows bigger maybe I can trust it but as of now, not enough good fundamental for me to put my money into stablecoin that's just recently listed on the market.
knowing that there has been many bad histories involving small market cap stablecoin as well.

[CroverNo01]

a really small market cap for stablecoin which exposes to low liquidity risk and their latest TGE makes me rethink twice about trusting the stablecoins though.

don't know if the market cap grows bigger maybe I can trust it but as of now, not enough good fundamental for me to put my money into stablecoin that's just recently listed on the market.
knowing that there has been many bad histories involving small market cap stablecoin as well.

There's history surrounding the originating region of stablecoins in the market. Stablecoins are appreciated and worthy for the bigger good of traders and investors in the market. We can confidently swap our coins into stablecoins if we suspect the token to be on the wrong bearish side. None of us will be excited or happy about our portfolio been liquidated. Crypto is scattered into major phases and promising ourselves to be important to the system. Does investing in stablecoins results in profits? What's the whole point of investing in stablecoin when we can scout on projects that are rare and having good roadmaps?

[Gozie51]

Simply, I would rather hedge my coin or fiat on stablecoin especially usdt when the market is bear than to buy and hodl stablecoin for the sake of achieving volatility. Instead of doing that, I will go straight to invest on a coin I choose and wait for return over a period of time and bitcoin is preferable because it will bounce back after a bear season. Buying bitcoin at the bear time is more better than hodling your coin in stablecoin because bitcoin is capable of creating liquidity at any point.

[btc_angela]

Simply, I would rather hedge my coin or fiat on stablecoin especially usdt when the market is bear than to buy and hodl stablecoin for the sake of achieving volatility. Instead of doing that, I will go straight to invest on a coin I choose and wait for return over a period of time and bitcoin is preferable because it will bounce back after a bear season. Buying bitcoin at the bear time is more better than hodling your coin in stablecoin because bitcoin is capable of creating liquidity at any point.

I think we already know that trick already, it's just a question on what stable coin do we have to hedge our crypto.

As the OP says, it might not be good with USDT, and so we should look for better options. Although I would admit that I'm into USDT and haven't try any other stable coins except USDC.

Anyhow, I think this could be good in the bear market, I mean we are still in the bull run, and so maybe others might be hedging to stable coins or just continue to HODL and do nothing and wait for the market to bounce back.

[cabron]

 I used to be just using the BUSD but they seem to be removing it already. It is now USDTb which is same as those launched by Binance still.

I'm not sure if any one you are using FDUSD but I find it nice since and still cheaper tx fees.
And then there's RLUSD of ripple. Although I haven't tried it yet, this will be one stablecoin to use for in trading ADA.

[Hispo]

I used to be just using the BUSD but they seem to be removing it already. It is now USDTb which is same as those launched by Binance still.

I'm not sure if any one you are using FDUSD but I find it nice since and still cheaper tx fees.
And then there's RLUSD of ripple. Although I haven't tried it yet, this will be one stablecoin to use for in trading ADA.

BUSD was by far my favorite stablecoin because it had the backing not only of Binance but also the backing of a company like Paxos, which was properly registered in the United States to issue those kinds of actives in the Blockchain and make them redeemable for cash. Though, it came to an end because of the SEC.
So far, I have opted to keep a balance between both USDT and USDC, and if the European Union continues to be skeptical of the reserves of USDT, it is likely people will start to move from it to other alternatives in the future.

A depeg of USDT would be catastrophic to this market and millions around the world would lose their savings and liquidity in a blink of an eye...

[Mrbluntzy]

In preparation to buy the dip, investors can still save money in their local fiat and use it DCA anytime they chosen to. No too much processes and steps involved in converting local fiat to USDT or USDC before you invest. So, since the digital fiat is centralized and facing some issues as you said, you will be safer to hold the money in your local fiat until you are ready to buy the dip.

[kentrolla]

No, not a right time to accumulate it as the only option was to have converted the asset to stable coins when the market started going down. I think it's wise to continue with either DCA with stop loss unless we see a steep drop we shouldn't be going into the backup mode of accumulating stablecoins. Not sure if this is just a market correction or begining of best market but we need to be cautious.