Investment in cryptocurrencies is highly risky because crypto prices are subject to volatility. However, the instability of the crypto market is also an opportunity to profit from price fluctuations. Some trading strategies imply earning little profit from price changes during the day, while others involve long-term investment based on tech analysis of the market and trends.
None of the digital assets can be called “safe cryptocurrency”. In the long term, recommended assets to invest in are Bitcoin, Ethereum, Ripple, and other popular cryptocurrencies that take the leading positions in crypto rankings.
Among those top crypto, we can also see Tether (USDT). Interestingly, its price is always around one dollar. Why does it happen so, and is Tether a safe coin?
What Is Tether?
BTC USDT is the most traded crypto pair on all crypto exchanges. If you pick these assets in a crypto calculator on one of the crypto platforms, you will see the up-to-date price of Bitcoin in dollars.
The fact is that Tether is a fiat-backed coin, which means its rate is always equal to 1$ or close to it. Why is such an asset needed? The matter is that stablecoins like Tether (USDT) and Binance USD (BUSD) are very useful in crypto trading and now only. Here are use cases:
- Stablecoins are used by traders and investors before huge market fluctuations. When a trader thinks the market will drop soon, one converts his savings to USDT, thus preserving their value in dollars without the need to exit the market.
- Stablecoins allow money transfers worldwide with no middlemen and avoid bank participation. Besides, crypto transaction fees are much lower than banks’ commissions.
So it is safe to say that Tether is the most reliable crypto asset. However, there is no point in using it for investment because the USDT price is always around one dollar.
Tether is traded on all credible crypto platforms. You can list the safest crypto exchanges to work with: Binance, Kraken, Coinbase, and the WhiteBIT crypto exchange.