I get TGBP through Crypto.com
Stablecoins are a good way to mitigate risk.
One benefit is having emergency savings. If you suddenly need cash, stablecoins can readily be converted without tax implications. One of the problems with other cryptos is that you lose out on capital gains or lock in a loss if you are forced to liquidate suddenly. For this reason, stablecoins can act as a buffer for when you need cash.
Stablecoins can also serve to hedge against currency fluctuations. For example, I could buy TUSD and TGBP. Depending on where I want to spend, I can tap into either one of those. Interest would be earned in each currency. If the dollar is weaker, I spend TGBP. If the Pound is weaker, I spend TUSD.
Crypto.com offers 3 month, 1 month, and flexible deposit terms. The 3 month and 1 month terms work like CDs or bonds. The flexible term acts like a money market account.
One final advantage that stablecoins offer is one against volatility of your overall crypto portfolio. You want some stable component to help smooth out the wild fluctuations of your portfolio. This helps lock in gains and helps keep you from freaking out to see your investments fluctuate wildly.
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Ah I did read about Crypto.com offering it but wasn't sure if you minted them there or just bought whatever supply they had.
Stablecoins are still considered a crypto asset here in the UK so would need to see what the tax implications are here should earning stablecoins and interest etc becomes significant.
But definitely agree with the stability side of it and if you want to have that with your crypto portfolio then worth keeping a core of it in stablecoins so you don't have sleepless nights, which are quite common in crypto!
Thanks for sharing your experiences of TGBP and stablecoins 😀
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