Recently, there has been some unprecedented events in the cryptocurrency ecosystem. Crypto traders experiencing  DIPs (massive price fall) in their portfolios. It is no longer news that a ticking bear market is unfolding, leading to a massive decline in the value of cryptocurrencies. A few have sustained the value of their assets by converting to stable coins which have protected their cryptocurrency worth from devaluation.  This article will drive towards the concept of stable coins and their role in a bear market (overall fall in prices of cryptocurrencies).


For the newbies that are just entering into the cryptocurrency space, cryptocurrencies are simply digital assets or currencies for digital transactions. It said said to be the future of payment system by various recognized individuals.

Traders or ‘investors’ as we traditionally refer to them, benefit from cryptocurrency through market volatility. Market volatility implies the irregular rise and fall of a cryptocurrency at any material time. Let’s quickly illustrate how market volatility works.


Assume an investor owns a coin (a cryptocurrency), let’s say $DOGE. Let’s assume the value as at 4am on 10th April 2022 was worth $0.02, and he decided to buy the coin at the above stated price. The coin within that period gained traction (popularity and attraction of buyers). This traction led to the price rising to $0.15 due to massive buying. Now the value of the investor’s $DOGE increased from $0.02 to $0.15. At this point, the investor has profited and achieved great gain.

Let’s take another example. For instance, an investor buys another coin, $PHTR. $PHTR held the price value of $0.22 at the time of purchase. Four hours later, $PHTR dropped to $0.001. The value declined, meaning the investor will be running at a loss.


These two illustrations above, describe how market volatility can make a trader gain or lose profit from a cryptocurrency trade. To prevent market fluctuation of assets, an investor can use a stable coin as a hedge coin against volatility, to protect his worth or value, till he decides to withdraw or further a trade. Stable coins are pegged to the USD and doesn’t fluctuate so this becomes a useful asset for investors in times of volatility.

Investors see stable coins as a hedge against inflation in fiat currencies of their economy and also as a safe haven in times of huge downside movements in the market. Stable coins provide a cheap, fast, easy and verifiable means of transferring value. It is said to be the back bone of the internet of value.


A writer, poet, researcher and literary enthusiast.


  • Avatar
    May 25, 2022

    Stable coins obviously save the day anytime…. One thing traders have to learn is when to go stable and hodl as diamond hands…. Every investors should know DCAing is not only on entries, it works for exits too

    Imagine hodling btc from 50k till now claiming diamond hands while you could have just DCA out and bag the dip and keep increasing quantities….. Going stable is what investors need to learn and the timing matters!!!

  • Avatar
    Cypto Touch
    May 25, 2022

    Stable Coins- Saving the day since 1892.
    Seriously the inventors of stable coin did a huge job for the crypto eco system

  • Avatar
    Promise Okekannadi
    May 25, 2022

    Good evening, Ini.

    First off, I must commend you for putting up such an informative write-up. It shows how much of a good writer and researcher you are.

    With this, I have been made to understand that stable coins are the most preferred for investors, and I now understand the system of market volatility.

    I find this report very helpful and timely, as cryptocurrency is the new face of wealth creation.

    Thank you very much, Ini!

  • Avatar
    May 25, 2022

    This is correct. The purpose of stable coins majorly is to opt out of the volatile market movement so as to avoid running at petty/massive losses.

    Just as the writer said, stable coins are used to either guide one’s self ahead of buying or better still withdrawing one’s funds completely from the exchange (CEX or DEX).

    However, when leaving the volatile market and opting to stable coins, it’s advisable to make use of the very best of the best stable coins to as we just experienced that or $TERRA’s $UST whose price dropped drastically. Even $USDT got affected slightly.

    Stable coins like $USDC, $BUSD are better as they are solid and aren’t volatile like the rest even though we know.

  • Avatar
    May 25, 2022

    Very great write up published at the right time. Informative, educative and enlightening.

    These are some of the basic things that needs to be understood in crypto.

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