How to use StableCoins to Your Advantage.
How to use StableCoins to Your Advantage.
How to Protect your Assets.
When trading, it’s hard enough to correctly time one market let alone two. The last thing anyone wants is to watch investment profits disappear before their eyes.
For less advanced crypto-traders;
“Typical” Cryptocurrency Exchange Steps are as follows;
Obtain Bitcoin or top Altcoin with centralized fiat-to-cryptocurrency exchange platform. (Allowing deposits)
Transfer cryptocurrency to preferred digital currency trading exchange.
Trade, obtain, exchange, etc. on preferred trading exchange.
To trade newly obtained crypto for fiat or protect assets in fluctuating market; trade crypto back to Bitcoin or top Altcoin on preferred trading exchange.
Transfer cryptocurrency to centralized cryptocurrency-to-fiat exchange. (Allowing withdrawals)
Sell Bitcoin or Altcoin on exchange and withdraw to your bank account.
Wait 3–7 days for bank transfer.
Added fees with each exchange/transfer/trade/buy/sell
Stop Loss Method.
To stop loss in a volatile cryptocurrency market, simply exchange digital currency for StableCoins. Use ‘hedging’ and ‘harvesting’ (discussed later) to gain a profit in a declining market.
Example.
In the event Bitcoin is having one of its “Bart Chart” moments. Seen here — ->
Every two to three minutes the overall value changes 10 to 20%. A portfolio can take a hit while waiting for Bitcoin to send from one exchange to another. It typically only takes ten minutes for a transfer. That is, unless the exchange platform is experiencing heavy volume and it takes an extra five minutes to process the send. If the exchange is backed up, chances are the Bitcoin network is as well, this can add another five or more minutes per transaction.
We’ve all been there… You keep refreshing the page while the exchange waits for enough confirmations to consider it approved. Now you can START to trade it for fiat! NOW your profits are safe!
A few minutes here, a few minutes there… it all adds up. In that 10 to 20, maybe 30 minutes, what’s happened to the price of Bitcoin? A lot.
A “whale”, another ban from China, or CNBC reporting “Bitcoin Died (Again) Today” can show a 30% decrease in your portfolio. Stablecoins, while certainly not guaranteed to hold their value, provide a much more likely way to solidify profits. Using them to as a method to stop loss during market dips can save a trader a great deal of loss.
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