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Which Stablecoin if USDT / Tether is risky?
- Thread starter Spinat
- Start date
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- stablecoin tether usdt
You can’t hold your money in fiat or in any fiat crypto copy, because fiat is designed to be worth zero. It’s not my opinion, it’s math.
Use fiat to buy something valuable, for example btc.
Much better to open your eyes knowing that every day, since the beginning of history, fiat regularly and inevitably loses value
I would exchange that USDT for BUSD. Or at least split it 50/50.
Alternatively, one could take out a crypto loan. I do this regularly against my XMR holdings on Binance.
It is not risky, this is called volatility.
If vola stresses you out, keep 2-3 years of living expenses in these (unsecure fiat instruments).
Usdt is ok, would rather trust them than that very opaque binance operation. But as its fiat, everything is not that great at all. You will see when the money printing comes back soon.
I'm not going to spend time arguing about this as it essentially comes down to personal opinion/risk profile.
BUSD was approved by the New York State Department of Financial Services and that is at least _some_ kind of a guarantee in my book.
I must admit I didn't know about GUSD. Seems like it's a decent alternative as well.
There's also PAXG for those who don't want the risk of BTC or USD volatility and don't mind US regulation. NYDFS are decent, but being in the US gives rise to federal exchange/capital control risk and confiscation.
Your assessment is correct: Currently you run three main risks:
- Your wallet (a simple commercial enterprise) goes bankrupt/rogue and ceases to exist.
- Your wallet gets hacked and the "stable"coins vanish overnight.
- Your "stable"coins are less stable than the word "stable" suggests.
Even if you require anonymity there are better ways compared to "stable"coins: Keep your money in cash in a mix of different currencies. Perhaps add some gold into the mix.
1. Every decent wallet is open source code
The seed phrase is compatible across most other wallets if 1. is decent, which it should be in the first place.
Stable coins are a lot faster to transact internationally and in/out of crypto and not all banks want to have crypto funds. Stable coins are not a useful tool for "dubious anonymity".
I'm glad OP rised the question.
I'm holding 100K euro in stablecoin USDC in the believing it was safe to store my retirement in that coin.
The Wallet is owned by a Switzerland company owned by me, I was not able to open a business account yet for the company, that's why I store them in stablecoins.
What you people suggest here is good, but requires some sort of bank account which is not possible for all to get.
I'm holding 100K euro in stablecoin USDC in the believing it was safe to store my retirement in that coin.
The Wallet is owned by a Switzerland company owned by me, I was not able to open a business account yet for the company, that's why I store them in stablecoins.
What you people suggest here is good, but requires some sort of bank account which is not possible for all to get.
I assume that your accounting is OK with this? Do they treat like any other USD-denominated bank account?
yes all approved also by the Switzerland authority, that's not the issue.
Swissquote denied you?
Up it to 500k and Sygnum et al will onboard you as you live in Switzerland.
Not all need to be crypto, you can use and consolidate your other fiat holdings into one of these.
Depending on your age and lets say your retirement is 20 years out, storing fiat which does not even have interest paid and hence does not compound, will be 100% a bad bet for retirement. These 100k prob will only pay 60k later down the road.
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