1. Price stability — stablecoins are pegged to fiat, so they help maintain purchasing power during periods of strong market fluctuations.
2. Quick access to liquidity — transfers between spot pairs and stablecoins are often faster and cheaper than withdrawals to fiat.
3. Convenience for trading and hedging — it's convenient to hold a 'bridge' between positions without fully exiting into fiat.
4. Earning opportunities — stablecoins are often used for staking, savings, and income products on exchanges and in DeFi (remember the risks).
5. Simple reporting — to account for profits/losses and taxation, holding part of your portfolio in a stable unit can simplify record-keeping.
But an important warning: stablecoins are not without risks — the risk of depegging, counterparty risk of the issuer, regulatory changes, and technical vulnerabilities. Only hold the portion you are comfortable with, and choose trusted projects/platforms.
Stablecoins are by no means 'the entire strategy', but a tool. Use them for managing risk, liquidity, and operational actions in the market.
(Not a financial recommendation. Always do your own research.)
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