@rezab
Market Collapse Risk: When Stable Becomes Unstable 💀
When market panic hits, stablecoins can lose their peg to the dollar, creating a cascade effect. Even fiat-backed stablecoins have experienced temporary depegs during crisis moments.
Risk Management ⛔️
1. Diversify Across Stablecoin Types:
Never hold 100% in a single stablecoin. Spread exposure across fiat-backed (USDC, USDT) and crypto-backed (DAI) options to mitigate issuer-specific risks.
2. Limit Exposure Size:
Treat stablecoins as transactional tools, not long-term stores of value. Keep holdings proportional to immediate needs and maintain majority assets in traditional accounts.
3. Use Multiple Platforms:
Distribute holdings across different wallets, exchanges, and DeFi protocols. Avoid concentration risk where one platform failure wipes out access to all funds.
Always DYOR! Always Be safe!
#StableCoins #Crypto #USDE #USDC #USDT #RiskManagement
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