But the dilemma when it comes to stablecoins is that the ultimate truth about the assets they are pegged to. We are just relying on the third party audit results about their assets. This is the reason that if there will be a catastrophe that is about to come, we won't know it. Because we don't know the actual truth. Are we confident that these audit companies are indeed 100% trustworthy? Most of the time, it is already too late for the holders to recover their losses. So for me, we should not go all in in crypto, set aside some for tangible assets, whether in real -estate, precious metals or whatever you can afford to. So long it is outside of this market, if that's possible.
I concur to this, to the fact that one cannot be confident enough in these audit companies to be 100% trustworthy but, most have been been on course with preservation of coin values and haven't raised much of a flag for we not to trust them except for the questions on how many of these coins are actually pegged to a real dollar. You never can be so sure and have to accept the risk factor in using there services still. You can't do business without risk.
Speaking of which, about diversifying from cryptos to some physical entity assets, yeah it might seem the right way and still it rises and falls and supposedly, it was on the down side when crypto started rising, you still get to lose a little in selling to buy and the idea behind diversifying was to preserve value. In that, you've failed.
I think the right thing here isn't about swapping between investments but, having a portfolio that accommodates several streams and utilises the instruments that exists within the field through the rises and falls of the field. A back and forth swap could result in some loses as well and I think it's actually the more risky.
