Tether is a cryptocurrency or a stable coin pegged to an asset, the US dollar. It means one Tether always equals one US dollar.
Tether has been in the news lately due to the concerns about whether it has the dollars to back up all the Tethers that have been issued or not.
Some people are convinced that Tether is a scam, while others believe it is a safe investment. So, should you buy a Tether? This article will explore whether or not you should trade ETH/USDT.
Let’s get started.
What is Tether?
Tether is a digital token that is pegged to the US Dollar. One Tether is worth USD 0.01. Previously, Tether faced a situation when its worth was more or less than $1. However, when there’s a downfall in cryptocurrency prices, the need and demand for stable coins increases, resulting in the hike of Tether’s price.
Tether is used to store value in times of volatility. When the price of Bitcoin goes down, you can buy Tether with your Bitcoin and hold onto it until the price goes back up. Tether is also used on exchanges to trade between different cryptocurrencies without having to convert back to US Dollars.
For example, if you want to trade Ethereum for Bitcoin, you can use Tether instead of US Dollars. But where to exchange your cryptocurrency? Well, one great platform for this purpose is the KuCoin crypto exchange.
This digital asset exchange platform offers multiple cryptocurrencies, including Tether, for exchange. It has a user-friendly interface and low trading fees. You can also get discounts on trading fees when you pay with a KuCoin token ( KCS).
Why Choose Tether?
The primary reason why people use Tether is to convert their cash into a stable digital currency. It may leave you to wonder what’s the point in using it when there’s no scope for earning huge profits.
However, there are several uses of Tether, and some are mentioned below:
No matter where or when, Tether can be used to pay for goods and services, just like any other currency. The main difference is that Tether is pegged to the US dollar, so its value remains relatively stable. This makes it a good choice for businesses that need to avoid volatility when pricing goods and services.
Another use of Tether is trading. Say you want to buy Bitcoin but don’t want to risk the market’s volatility. Instead, you can buy a Tether pegged to the US dollar.
Then, when you want to cash out, you can sell your Tether for Bitcoin. This allows you to trade without worrying about the market’s volatility. All you have to do is buy and store Tether in your exchange account. Then, you can trade it for your desired crypto whenever required.
Lending is the process of giving out your digital assets to others in return for an interest rate. This is a popular way to earn something extra from your holdings. Also, it’s one of the primary ways Tether makes money.
To lend on Tether, you’ll need a USDT balance in your account. You can then choose how much you want to lend and for how long, and Tether will match you with borrowers looking for loans.
Lending your stable coins (Tether) will reduce your worries about price downfall, like in the case of other cryptocurrencies.
Should You Buy a Tether?
The simple answer is yes; you should always buy Tether. If you’re planning to buy stable coins, then Tether should be your go-to option.
It is the most stable and reliable cryptocurrency, and its value doesn’t fluctuate nearly as much as other coins. Moreover, it’s easy to convert back into US dollars is easy if you need to.
The Bottom Line
So is it worth it to buy Tether? Absolutely. It’s a stable, reliable currency that can trade other cryptocurrencies. And since it’s pegged to the US dollar, you know exactly how much your Tether is worth.
If you’re looking for a safe and easy way to get into the cryptocurrency market, Tether is the way to go. We hope this article helped clear things up for you and gave a precise detailing of Tether.