Since its launch in 2014, Tether USDT has enjoyed phenomenal growth to become one of the major cryptocurrencies. With a market capitalization of $7.82B as of May 2020, Tether USDT has joined the top four cryptocurrencies, with the other being Bitcoin ($BTC), Ethereum ($ETH) and XRP ($XRP). This cryptocurrency belongs to the class of stablecoins and promises traders and users protection against price volatility.
Due to the fast-paced nature of the cryptocurrency and blockchain ecosystem, it’s crucial to stay abreast of new trends before investing. You should get as much information as you can about the crypto coin your wish to buy, its potential, network, and other details.
This post delves into Tether USDT to demystify the cryptocurrency and help you make an informed investment decision.
Overview of Tether USDT
For most cryptocurrency investors and analysts, market volatility has been a controversial topic. It is an argument that the traditional financial system has used against innovative digital currencies. Many would-be traders have kept off the cryptocurrency market as price fluctuations keep affecting trading volumes and interests. For traders after stable investments, the idea of cryptocurrency has never looked appealing for these reasons.
Many crypto coins have emerged in a bid to solve problems associated with bitcoin and other traditional cryptocurrencies. Among these is Tether USDT, a crypto coin which integrates cryptocurrency/the blockchain technology and fiat currencies.It is now the most popular stablecoins.
The idea behind stablecoins is simple. The innovative crypto system make it possible to convert any fiat currency into a corresponding cryptocurrency of the same value. For instance, every Tether digital token is equal to one US dollar (USD). This coin’s value is tied to fiat currency (USD) which protects it from volatility common in the cryptocurrency market.
Tether is issued on the Omni layer Protocol operated by the bitcoin blockchain and works through Proof of Reserves. Tether USDT transactions on the platform are recorded as Bitcoin transactions.
Tether Limited, the company behind the crypto coin, works to maintain a near-perfect 1:1 parity. This stablecoin is 100% backed by and redeemable with USD reserves at all times. The Tether project came about after intense research by scientists and academics trying to overcome challenges experienced by bitcoin and the older cryptocurrencies.
Is Tether USDT Viable as an investment?
When making any investment decision in the cryptocurrency market, you should avoid the hype and instead do your own study. Most of the successful traders in the market invest heavily in performance analysis, and this is the strategy you should adopt.
Any introduction to Tether should give you all details you need to review this digital token for your trades. Tether USDT has emerged as a popular medium of payment for investors in cryptocurrency and businesses. However, it is in trading that this stablecoin continues making waves due to its stability. For traders who expect a downturn in other cryptocurrency, the zero volatility of Tether makes it an effective way to gain a profit.
Better still, you can use this stablecoin as a hedge if you don’t want to stay with crypto assets overnight. The same applies if you are not trading your assets. Tether USDT is a great way to store your assets safely and avoid losses in case of price fluctuations for particular crypto coins.
Tether USDT is accepted by most crypto exchanges and you can use it to transfer value between these platforms without losing money. For new investors in the cryptocurrency market, USDT simplifies transactions. Now that exchanges don’t want to deal with USD, you will find this stablecoin invaluable whenever you wish to trade in cryptocurrency.
Tether USDT is the future of cryptocurrency and you only need to look at its phenomenal growth over the last few years. This coin could finally force the global financial systems to embrace cryptocurrency now that it has the backing of a real asset.
If you want to invest in Tether USDT, it’s advisable to carry out in-depth research into this stablecoin. It has emerged as one of the fastest-growing cryptocurrencies since launch in 2014 and this makes it an excellent option for your cryptocurrency portfolio. While there’s some controversy regarding auditing, this cryptocurrency deserves the attention of every investor in crypto.