Initially, you might only utilize major coins like Bitcoin and Ethereum. However, as the market grows and the types of coins diversify, you naturally become familiar with more coins.
The word I encountered most frequently during this process was 'stablecoin'. I realized that understanding the types and characteristics of these stablecoins is crucial for maintaining stable futures trading.
When I first started trading futures, I thought I could simply deposit Bitcoin as collateral and manage positions. However, I found that stablecoins frequently appeared when liquidating profits or temporarily holding assets.
A stablecoin is, quite literally, a digital asset with a stable value. Most are pegged to the dollar and are very useful for temporarily holding assets or realizing profits in the highly volatile cryptocurrency market. In fact, converting to stablecoins after realizing profits becomes one of the basic strategies in futures trading.
Currently, the most widely used stablecoin in the US market is undoubtedly USDT (Tether). A significant portion of the total cryptocurrency trading volume is conducted in USDT, highlighting its great liquidity. Next is USDC, a stablecoin co-issued by US companies Coinbase and Circle, which is highly rated in terms of regulatory compliance and transparency.
Another coin to pay attention to is DAI. DAI operates in a decentralized manner and maintains its value based on an algorithm. Each stablecoin varies in terms of issuing entity, operational method, and trust structure, leading to different choices based on use and preference.
On Upbit, which is widely used by domestic investors, stablecoins such as USDT, USDC, and DAI are listed. In particular, USDT is the most actively traded, followed by USDC.
Of course, many Upbit users trade mainly in the Korean won market, but for investors who also engage in futures trading or overseas exchanges, using stablecoins to manage assets and transfer them to global exchanges can be an effective strategy.
From my experience in futures trading, I've realized that how you operate stablecoins greatly influences your risk management capabilities.
In a highly volatile market, it's often advantageous to convert to a stablecoin first rather than directly to Korean won after liquidating positions, allowing you to monitor the situation. For example, if you anticipate a decline in Bitcoin prices, converting to USDT in advance gives you flexible timing.
The most important thing at this time is 'which stablecoin to choose.' You should assess liquidity, transaction fees, transfer speed, and the reliability and structure of each coin in advance to move more strategically.
While USDT is highly practical due to its widespread use, transparency regarding its reserves is often questioned.
USDC is issued based on US regulations and has relatively high transparency and trustworthiness.
DAI maintains its value through an algorithm based on a decentralized protocol, emphasizing user autonomy.
If you understand the structure and background of each coin properly, you can respond more quickly and accurately even in a rapidly changing market.
Accurately understanding the types and characteristics of stablecoins while trading futures goes beyond mere information; it is key to a practical investment strategy. Being aware of the trends in both the US market and Upbit ensures smooth currency exchange, transfers, and position management.
In times like these when the market reacts sensitively, stablecoins play an even more important role. They can be useful for temporarily holding assets or waiting for the right timing to enter the next position.
I also plan to continue studying the structure, market responses, and regulatory changes related to stablecoins in the future, and I intend to utilize this knowledge for more stable and strategic futures trading.
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