In high-volatility markets, stablecoins act as ​​risk buffers​​ and ​​trading tools​​. Allocate 20-30% of portfolios to stablecoins (e.g., USDC, DAI) for liquidity and downside protection. Use them for: 1) ​​Arbitrage​​ (exploiting price gaps across exchanges); 2) ​​Hedging​​ (selling during crashes, buying dips); 3) ​​Yield farming​​ (earning 5-8% APY via protocols like Curve). Avoid overexposure to algorithmic stablecoins (e.g., Terra’s collapse). Prefer overcollateralized ones (USDC: 150% reserve). Recent data shows stablecoin holdings rose 40% during the 2024 crypto crash, proving their defensive role.