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Keeping a good portion of your portfolio in stablecoins is a good idea

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by COINS NEWS 205 Views

Really guys you need to start doing this, especially now when the market is in such a confusing state. Personally I keep 10% of my portfolio in USDC or USDT and it has worked wonders for me. There are two main advantages to doing this which I shall explain.

  1. Staking. This isn't the main reason but it sure as hell is a good one. You can get rewards up to 10% and above that (some up to 20% but I don't know how legit this is). Average returns from the S&P 500 are ~5% a year so this is actually amazing. However I don't know how long term this is like could you start putting money into this for your retirement? I doubt it. But this is great returns especially if you aren't active in the market.
  2. The second and more important reason to me is having money left over to invest. Something found in investors is that many of us have ADHD when it comes to out portfolios and none of us particularly like sitting on our hands waiting for our assets to go up. But we need to be patient. Having stablecoins on hand for whenever the markets dip like in early December or January is essential for enhancing your profits. None of us can predict when dips like that will happen so it is better to always be prepared than to try to predict it. Also many of us make a profit and think that we need to reinvest as soon as possible so we don't miss out on gains, this is when patience is once again useful to us. I will leave you with a Warren Buffet quote that perfectly encapsulates this - "Holding cash is uncomfortable, but not as uncomfortable as doing something stupid."
submitted by /u/Ben_Dover1234
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