Unlike Bitcoin and Ethereum, where price fluctuations occur constantly, Tether (USDT) is considered to be a very stable cryptocurrency; one that has held a near-constant value. If you are searching for ways to invest in Tether, this article will prove to be helpful.
Tether is a stablecoin; meaning that its value remains stable in the long cycle, however, minor dips and hills may be experienced. Generally, people who invest in Tether are not looking for price fluctuations earnings, but for modest long-term stability instead.
Investing in a stablecoin
As described above, a stablecoin is designed to remain relatively constant through all the fluctuations that occur in the crypto market. Tether is a stablecoin; meaning that it is a great way for people who don’t wish to risk a lot to diversify their portfolio. While investing in more volatile cryptocurrencies such as Bitcoin and Ethereum for gains, Tether lends a sense of security to the investors that a sizeable chunk of their investment is safe.
Buying Tether
Like all other major cryptocurrencies, Tether can be bought and sold on many top-ranking exchanges.
- Binance
- Crypto.com
- Kraken
Usually, cryptocurrencies are paired with others; so that when the market receives a blow to on currency, the other currency is there to neutralize the losses, while when the markets are up gains can be doubled.
However, since Tether is directly pegged with US Dollar it can be ‘truly paired’ but it does provide liquidity in the markets to the extent other currencies are unable to. Many cryptos are bought and sold with Tether as a source of finance.
Case in point; Kaiko is a popular digital assets provider where nearly half of the Bitcoins traded in October 2021 were financed with Tether.
Executing your purchase takes a few simple steps. We understand that for first-time investors it may seem overwhelming. Hence, we have broken down the process into steps.
Step 1: Choosing a Crypto Exchange
Many popular exchanges allow trade in various cryptocurrencies. As a starter, we suggest you choose one that has a built-in wallet to secure your assets. Exchanges vary in fee and complexity as well, before selecting one ensure that you make a detailed comparison based on these 3 factors among various exchanges and then choose the one that suits you best.
Once you have selected your exchange, you will simply have to buy Tether using your U.S dollar deposits by pressing the buy button. And just like that, you are now the owner of Tether assets.
Step 2: Choosing your wallet
Just like real currency, cryptocurrency will also require a wallet. Only this one will be digital and intangible, like the investment itself. Though the exchange you have chosen may provide a wallet but it is not considered a very secure method to store investments.
Other ways of storing your assets are as under:
- Hardware wallets: Offline hardware wallets such as Prokey and Ledger are deemed secure as they are offline. However, you may need to move your assets online every time you plan to trade.
- Paper wallets: A combination of 2 keys – private and public – and two different QR codes printed on plain paper is known as a paper wallet. Whoever possesses this piece of paper owns the assets and hence they are often referred to as ‘non-custodial’ cold storage.
- Software wallets: Specific, purpose-built software can be downloaded to store your assets. The software can work on PC and mobile devices as well.
Tether a good investment
Depending on the nature of your investment, and the purpose you are investing for Tether can be a good or a bad investment at the same time. Tether’s ideal investors’ profile will be a person who is looking to diversify his/her portfolio. He/she is not keen on taking unnecessary risks, and neither is he/she looking for gains that occur due to price fluctuations.
The sole purpose of such an investor is to buy an asset that has the strongest currency on its back (USD), and can’t be readily spent while providing the same level of liquidity as cash!
