Stablecoin collapse poses risks for retail investors, including loss of funds and market volatility. To mitigate these, diversify investments across asset classes to reduce exposure. Choose stablecoins backed by transparent reserves and audited by reputable firms. Store assets in secure, non-custodial wallets to maintain control. Stay informed about regulatory changes and market signals through reliable sources. Consider hedging with traditional assets like bonds or gold to offset crypto volatility. Limit stablecoin holdings to a small portion of your portfolio, and avoid over-leveraging in volatile markets. Regularly review issuer financial health and redemption policies. By spreading risk, prioritizing security, and staying proactive, investors can better shield themselves from stablecoin crash impacts.
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