@aheadhairmedia
Stablecoins act as a core capital preservation tool in high-volatility crypto markets. Investors allocate 20-30% of their portfolio to stablecoins (e.g., USDC, USDT) to shield against sudden price crashes. This allocation serves as a "cash buffer": it avoids forced liquidations in leveraged positions and retains liquidity to seize buying opportunities when asset prices plummet. For example, during Bitcoin’s 2022 bear market, stablecoin holdings surged as traders exited risky assets, locking in gains and reducing portfolio drawdowns.
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