In high-volatility markets, stablecoins like USDT or USDC serve as a hedge, preserving capital amid crypto price swings. Investment strategies include parking funds in stablecoins during downturns to avoid losses, then reallocating to volatile assets like BTC or ETH at dip-buying opportunities. They also enable liquidity for quick trades without fiat conversion delays. As an asset allocation tool, stablecoins balance portfolios, reducing risk exposure while maintaining flexibility. Yield farming or staking stablecoins on DeFi platforms can further enhance returns, offering 5-10% APY, making them a low-risk anchor in turbulent markets.