What role do stablecoins play in a balanced cryptocurrency portfolio?

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What role do stablecoins play in a balanced cryptocurrency portfolio?

So I've been thinking a bit about my crypto portfolio and considering the best strategy to balance it out. I'm already invested in a few different cryptocurrencies but now I'm contemplating about including some stablecoins as well. I mean, they seem to be warily stable compared to other cryptos and they kind of add this cushion for when there's a market downfall or some sudden volatility. Just wondering what role do stablecoins actually play in a balanced cryptocurrency portfolio? What's your take on this, anyone has any firsthand experience or insight to share?

That's an intriguing perspective! But I wonder how stablecoins actually offset volatility while maintaining decent returns? Could there be specific factors that influence their stability in the portfolio mix?

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