Trading with stable coins to get profit. It seems weird but it may be possible!

[Brushless4500KV 4214]

As you all know, stable coins are supposed to have very stable prices and they are usually used for storing value like fiat currencies. These digital coins are pegged against USD and each one of them should worth exactly 1 USD. The most famous stable coin of all time is USDT (Tether). Despite this, according to what I saw in its price behavior over the last month (a period of 30 days), it seems that this stable coin is not quite stable as it should be! I mean it has fluctuated a lot in one month. You can see this in the following chart from Yobit. Now, I thought about buying and selling USDT for profit. What do you think about it? Do these price movements high enough to bring profit for traders? I know it is not as volatile as something like LTC for example but for a coin that has been developed to be stable all the time, this is too much volatility!

 

 

[CryptoMaxim 3829]

With this kind of trading, you probably need a large investment to make a profit. I didn't trade like that. But perhaps you need to spend a lot of time on the market. Constantly monitor the price.

[Raqeebzy 6456]

4 hours ago, Brushless4500KV said:

These digital coins are pegged against USD and each one of them should worth exactly 1 USD. The most famous stable coin of all time is USDT (Tether)

Not all stable coin are pegged as you said against USD, some of them against Euro and other currencies, they can improve even be pegged against commodities like gold, silver and all of that. 

One thing about stable coin investment is that you don't have to worry about volatility, Tether USDT for example will always maintain 1:1 with dollars, they are good investments.

[Brushless4500KV 4214]

7 minutes ago, Raqeebzy said:

Not all stable coin are pegged as you said against USD, some of them against Euro and other currencies, they can improve even be pegged against commodities like gold, silver and all of that. 

One thing about stable coin investment is that you don't have to worry about volatility, Tether USDT for example will always maintain 1:1 with dollars, they are good investments.

In this topic I only referred to the stable coins that are backed by USD. I know there are lots of other types that are even backed by oil and high value metals in certain countries. Here, I'm not worried about volatility, I seek volatility! because I'm talking about trading not storing. I attached the above chart to show that sometimes Tether can be treated like a volatile coin. I don't know about its past but recently, it has been strangely volatile which made me to think about it as an altcoin! I want to know if anyone has had any experience of gaining profit from this coin.

[Raqeebzy 6456]

15 minutes ago, Brushless4500KV said:

Tether can be treated like a volatile coin

You cannot consider Tether as volatile, I attached below a chart from CoinMarketCap which shows the price range since last month since you talked recent markets. Can you consider a coin with price range of $0.97-$1.02 volatile?

15 minutes ago, Brushless4500KV said:

I seek volatility

Then maybe Tether and other stable coin is not for you.

Edited June 7, 2020 by Raqeebzy

[Jessica Karren 1242]

Yes we saw some fractional ups and downs in the price of USDT but if you want to invest in USDT to make profit then you have to invest big amount in it because the volatility of this coin is very low as compared to other coins like BTC, LTC, ETH etc. I personally don't use stable coins for this purpose. 

[magd 5231]

Stable currencies will not achieve sufficient and good profits in a short period. We need to trade them for a long time. For this reason, I do not think that they are good in my opinion. Currencies that fluctuate greatly and large sums if we follow them moment by moment we will be able to reap a lot of profits.

[George10 9932]

Stable coins are used as store of value due to the fact that they have less volatile prices and I don't think they can be great for investment because they are likely to generate small amounts of profits.

[Brushless4500KV 4214]

On 6/7/2020 at 7:28 PM, Jessica Karren said:

Yes we saw some fractional ups and downs in the price of USDT but if you want to invest in USDT to make profit then you have to invest big amount in it because the volatility of this coin is very low as compared to other coins like BTC, LTC, ETH etc. I personally don't use stable coins for this purpose. 

I checked USDT price from lowest to highest. The minimum value was $1.00 and the maximum was $1.035. Between these two values, there is a difference of 3.5% which I think is enough for gaining profit. Suppose someone buys $100 worth of USDT and sells it at $1.035. In this transaction he will gain about $3 profit. I agree that this may not be attractive for all but it is better than nothing and quite safe. At least we can earn a little profit during the time that we are storing the value of our coins in Tether. Storing along with 3% profit is better than storing with zero profit.

[jamesvince 2389]

Trading with stable coins means we have more chance to lose if bitcoin down suddenly but we have great benefits when btc goes up because then trading with usdt has profits for us and although in btc terms Altcoins are falling but we are in profits.

[Honny143 13612]

Trading with stable coin I don't think its profitable, because mostly stable coins use when unstable coins prices drops, and don't want our profit decrease then we convert in stable coins, but in trading we want fluctuated coins, then we earn profit but if want not want to take risk in trading then use stable coins.

[BitcryptoHan 2557]

On 6/11/2020 at 11:19 AM, Honny143 said:

Trading with stable coin I don't think its profitable,

I too do not think it is profitable, even if it is, it need high investment because only little price fluctuations do ocure. I prefer using unstable cryptocurrencies like bitcoin, ether and litecoin for trading. 

[Brand1 1336]

I have never tried trading with stable currencies before, never and I think that it is possible, but we need very large sums in order to achieve fairly acceptable profits because stable currency fluctuations are very few and their ratio is low and for this reason I always prefer unstable currencies

[Calvinpriva 17296]

Stable coins are very profitable when you will trade with them at the right time, you just need to read the market and trade your crypto coins to stable coins at the right time for a better profit.

[pablomarwan 3082]

I invite you to check again the price of the currency. I have not urged any change in its price for a long time, even if it goes down. You will know that from the comma 1.01 and become 1.00. This is the change. The average person will not be destroyed from this point.
This coin, I see, is stable despite what I said about it, perhaps the beginning of this way, or it depends on the price of the dollar in general, and if I note that it has not decreased strongly, the decline in other currencies is only a point.

[lharost 1526]

Not sure about USDT/USD pair and how much it changes in a day but I looked into stable coins years ago and I still to this day sometimes trade USDT/TUSD, USDT/PAX and other stable coin pairs but they don't usually worth your time because of how low their volatility is, for example today TUSD/USDT had only 0.05% increase and in binance you have to pay 0.1% for every trade or 0.075% with bnb coin with discounted fees and you have to pay that fee twice, one for buying and one for selling, so even if you bought TUSD using TUSD/USDT pair yesterday at lowest price you still can not sell your USDT for TUSD with profit because of the fees that you have to pay.

 

In other words if you have to pay 0.1% for every trade then the amount of increased price for stable coin pairs should be more than 0.2% a day for you to be profitable which doesn't happen on stable coins pair that often, that being said this stablecoin/stablecoin pairs can be a very safe heaven for traders that want low risk trades if a trading platform offers zero fees for trading though.

Edited June 17, 2020 by lharost

[iloveyobit 6599]

I did not try to trade in it, but you must first monitor the price and the requests to buy and sell in order to know if there are opportunities to buy or if the price between buying and selling is close.

[Sugibengi 390]

Yes, stable coins also sometimes fluctuate and in my opinion there is not much profit, stable coins only fluctuate a little so the profit is a little bit, in my opinion it is better to buy bitcoin or Ethereum because the fluctuation is high so you can make a profit. Besides that, I think buying bitcoin or Ethereum is very safe, so you don't need to worry if you want to invest there.

[Tunuu 2235]

There are many traders who earning profit with stable coins but since they are not volatile, you will need large capital to earn small profit. Their advantage is because they are not volatile so your money is not in a risk coin.

[awwad 74]

On 6/7/2020 at 11:17 AM, Brushless4500KV said:

As you all know, stable coins are supposed to have very stable prices and they are usually used for storing value like fiat currencies. These digital coins are pegged against USD and each one of them should worth exactly 1 USD. The most famous stable coin of all time is USDT (Tether). Despite this, according to what I saw in its price behavior over the last month (a period of 30 days), it seems that this stable coin is not quite stable as it should be! I mean it has fluctuated a lot in one month. You can see this in the following chart from Yobit. Now, I thought about buying and selling USDT for profit. What do you think about it? Do these price movements high enough to bring profit for traders? I know it is not as volatile as something like LTC for example but for a coin that has been developed to be stable all the time, this is too much volatility!

 

 

Stable coins you won't make high profits from them except if you a lot of money like 1 million dollars.. It is known that Tether (usdt) is for storing not trading. 

[Shaza Ahmad 1682]

Yes, it is true that Tether is a stable currency, but it is a little volatile because it is governed by supply and demand, and therefore traders are the ones who determine volatility according to their requests, that is, we cannot prevent someone who wants to sell Tether at a price of $ 0.99 or someone who wants to buy at a price of 1.01 $

[SuperCrypto 7193]

Tether is characterized by being backed by a reserve of the dollar currency, which represents a guarantee of the currency, meaning that the support of the Tether currency is kept in a location in the real world and is controlled by a central third party. So it is considered a safe haven from the falling of Bitcoin.

[Omar Ommeish 4872]

I do not think that this is a good idea because fixed currencies fluctuate in prices, but they remain constant in the long term because they are linked to the price of the US dollar, but it is possible to achieve some profits if you have large capital.
If you have tried this type of trading, tell us about your experience.

[Onden 2098]

I think you can benefit from a stable coin like USDT, but you won't get much profit there, because the increase in the price of USDT is not very significant, just a small increase. As traders, we need high price fluctuations so that the profit we get is also high.

[scofield64 943]

If you want to invest in stable coin like USDT then you need to invest huge amount of money in order to gain profits because the volatility of the coin is low unlike other coins.