Stablecoin Investing — “In a Bear Market or a Choppy Market, How to Earn Steady Returns Using Stablecoins?”

Earning money isn’t only about trading coins. When the market direction is unclear or prices are high, converting funds into stablecoins (such as USDT, USDC) and participating in wealth-management products is often a smarter and steadier choice. Many people look down on the small returns of stablecoins, but the power of compounding is immense. More importantly, your principal won’t shrink. Below are several stablecoin investing methods commonly used on the Gate platform for your reference.

First: Flexible savings/income (withdraw anytime). Gate offers multiple stablecoin flexible savings products, with annualized returns generally ranging from 3%–8% (fluctuating based on market capital demand). The advantage of this approach is that you can deposit and withdraw anytime, making it very flexible and suitable as a “liquidity pool.” For example, if you have part of your funds waiting for a potential dip-buying opportunity, you can put it into flexible savings to earn some interest first, and redeem it instantly when you need the money.

Second: Fixed-term investing / locked staking. If you’re sure a certain amount of funds won’t be used for a period of time, you can choose longer-term fixed investing, such as 7 days, 15 days, 30 days, 90 days, etc. The longer the term, the higher the annualized return is usually. Sometimes it can reach 10%–15%. Fixed-term investing is suitable for funds that already have a clear plan and don’t need to be used urgently; its returns are higher than flexible savings by a noticeable margin.

Third: Liquidity mining (stablecoin pairs). On decentralized exchanges or Gate’s mining wealth products, you can provide liquidity for stablecoin pairs (such as USDT/USDC) to earn trading fees and additional rewards. Since both coins are priced around $1, the risk of impermanent loss is extremely low, so the risk is small. Annualized returns will vary depending on the platform’s reward situation, and sometimes can reach 10%–20%. You can also exit at any time.

Fourth: Dual-coin investment. This is a structured wealth-management product linked to the price of a certain coin. At maturity, the settlement asset is determined based on the price. Although the returns may be higher, the risk also increases—because at settlement you might receive not stablecoins but the underlying asset coin, exposing you to price fluctuation risk. Therefore, this product is suitable for users who can make some judgment about the market; beginners are advised to participate cautiously.

So, who is stablecoin investing suitable for?

· Conservative investors: unwilling to take on coin-price volatility, and only want to outperform inflation.
· Dip-buyers waiting for opportunities: have a large amount of USDT, can’t find a good entry point for now, and don’t want the funds to stay idle.
· Experienced traders with large floating profits: when the market is at high levels, convert part of the position into stablecoins and invest to lock in profits, while also earning additional returns.

Need to note: while stablecoin investing has relatively low risk, it is not completely risk-free. For example, platform security, smart contract vulnerabilities, and de-pegging risk (in extreme cases, even USDT may de-peg). So it’s recommended to prioritize official products from major platforms, and don’t put all your funds into a single product.

In short: in a bull market, trading coins; in a bear market, investing. This is a truth that old hands in the crypto world understand. When the market doesn’t have a clear trend, let stablecoins help you “make money from money.” It can smooth your return curve and keep you well-stocked with ammunition, waiting for the next big opportunity. #夏日创作营
$GT ‌