Thinking of Trading in Tether USDT? Here’s what to know
If you are looking for different investment options in 2020, going to 2021, one of the options that keep coming up is cryptocurrency. Cryptocurrencies are among the best performing assets going back to 2019. Digital currencies offer multiple advantages, and this makes them a viable investment compared to traditional fiat money. Top among these is the USDT crypto which has continued creating some buzz in the industry.
If you are a sharp investor, it’s smart always to stay ahead of the trends. At this point, you need to get hold of every guide on investing in USDT crypto that you can lay your hands on. This guide seeks to demystify Tether USDT to make it easier for you to make an informed decision.
What is Tether USDT?
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For most beginners in cryptocurrency investment, one worry is the instability of these digital currencies. Bitcoin is used as the best example to show how cryptos fluctuate wildly. At the beginning of 2017, for instance, a single bitcoin was valued at $1,000. At the beginning of 2018, the price shot to $20,000 before falling to $5,000 in mid-2018. Such volatility has discouraged many serious investors from the cryptocurrency market.
Tether USDT has become popular as it seeks to solve this big concern by integrating cryptocurrency/the blockchain technology and fiat currencies. The USDT crypto falls in the category known as stablecoins. The digital coins are designed to remain valued at US$1 each through the backing of the circulating supply of USDT with fiat currency assets held in reserve. The blockchain/cryptocurrency was developed by Tether, a company based in Hong Kong.
In other words, the Tether USDT is pegged to the US dollar, unlike other ordinary crypto coins. This stablecoin is thus safe from price fluctuations than competing cryptos such as bitcoin and Ethereum.
The Best of Both Worlds
When buying other cryptocurrencies, it’s easy to lose money in a matter of seconds. This is because the price fluctuations are fast and the crypto market is volatile.
USDT crypto coin came about from a collaboration of science and academia to develop a coin that can withstand market movements. The result is a cryptocurrency which offers investors the best of both worlds.
When you want to buy the USDT crypto, you make a payment to the company Tether. The company then adds your funds to its reserves and creates new USDT for you. This means the value of your digital coins remains valued at US$1.
When a customer wants to redeem their cash from USDT, they can sell the coins at many of the cryptocurrency exchanges. Buying this crypto coin is easy using any fiat currency and any other cryptocurrency.
Is Tether USDT the Future of Cryptocurrencies?
Stablecoins such as Tether have stirred the industry by offering more stability in a volatile market. Tether USDT helps digitize the US dollar and make transactions easier, faster, and cheaper on the blockchain.
It is a practical cryptocurrency which makes it a viable investment. Many analysts in the industry see this as the easiest way for cryptocurrencies to go mainstream finally. It has also made Transfer of USD/fiat easier.
Based on market predictions, the Tether (USDT) is a profitable investment. Most forecasts indicate USDT will offer a good return in 3 to 5 years, which makes it a strong long-term investment. If you are after a stable asset to store value in, this is one of the best in the cryptocurrency market.
If you are a beginner in the cryptocurrency market, it’s good to get all the information you can about what you wish to buy. For Tether USDT, this includes knowing what the crypto is about, the solution it offers, viability, the performance so far, and future projections.