Now the third-largest cryptocurrency by market capitalization, this asset is Tether, which trades with the ticker symbol USDT.
USDT is a stable coin, an asset that is backed by a store of value outside of the cryptocurrency markets, such as fiat monies (e.g. the U.S. dollar) or commodities like an ounce of gold. Such an asset has been deemed important by traders, especially considering the high volatility levels that are often affiliated with the Bitcoin market.
What is USDT?
Launched in 2014, USDT is a blockchain-enabled platform designed to facilitate the use of fiat currencies digitally. USDT works to disrupt the conventional financial system via a more modern approach to money. USDT has made headway by giving customers the ability to transact with traditional currencies across the blockchain, without the inherent volatility and complexity typically associated with a digital currency.
As USDT is 100% backed by and redeemable for a reserve of assets at all times, the market values it near $1.00, no matter what crypto exchange you trade on. From being the first to the most used stable coin and one of the most traded tokens by volume, USDT has come a long way. USDT is today the most widely adopted stable coins across major exchanges, OTC desks, and wallets.
USDT is a digital representation of a dollar that can leverage the characteristics of blockchain transactions: speed, anonymity, borderless, decentralized, and global.
How Traders Can Use USDT?
Because the cryptocurrency has effectively zero volatility, USDT is often used as a way to profit by those traders expecting a downturn in the value of Bitcoin or other cryptocurrencies. USDT can be bought on most crypto exchanges, so USDT is popular as a tool for traders.
At a market price of $10,000, one BTC can be sold for approximately 10,000 USDT. That same 10,000 USDT could buy two BTC if the cryptocurrency fell to $5,000. Once (if) BTC returns to $10,000, one making such transactions would have profited $10,000.
Also, it can act as a hedge; traders that don’t want to hold crypto assets overnight or when they aren’t trading can sell their assets for USDT. Furthermore, as it is accepted by most exchanges, USDT is also a good way to transfer value between exchanges, allowing one to not fear their deposit will lose value once it arrives in the wallet of another exchange.
How to make money in Exchange Market?
When the price of BTC rises, you need to sell BTC to USDT. When the price of BTC drops, you need to buy BTC in USDT. Finally, you will earn the difference (by comparing the amount of BTC you sell/buy).
First, you need to transfer your BTC from your OTC account to Exchange account. This transfer process is real-time and free. Both OTC account and Exchange account belong to you.
When the price of BTC rises, you need to sell BTC to USDT.
In Exchange Market, Select [Sell], enter the price at which you want to sell BTC, select the quantity [100%], and finally click [SELL BTC] button. When the BTC market price reaches the selling price you set, all your BTC will be sell to USDT.
When the price of BTC drops, you need to buy BTC by USDT.
In Exchange Market, Select [Buy], enter the price at which you want to buy BTC, select the quantity [100%], and finally click [BUY BTC] button. When the BTC market price reaches the buying price you set, all your BTC will be bought by USDT.
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Disclaimer: Trading and investing in cryptocurrencies, also called digital currencies, crypto assets, and so on) involves substantial risk of loss. All informations are used at your own risk, and any content on this site should not be relied upon as advice or construed as providing recommendation of any kind.