We see cryptocurrency in the news all the time and financial institutions are adding Bitcoin to their balance sheets. Today, less volatile cryptocurrencies such as stable coins have hit the investors’ radars. The most popular stablecoin is Tether (USDT).
Tether is a blockchain-based cryptocurrency backed by the US dollar, which means that financial institutions hold real dollars in reserves that serve as collateral. relative to USD, you can expect stablecoin prices to remain stable, as the name suggests, unlike their popular cryptocurrency counterparts, Bitcoin and Ethereum.
The stablecoin sector aims to avoid volatility and enable cryptocurrencies as a store of value rather than a risky investment. Stablecoins also provide liquidity in a volatile cryptocurrency market that would be difficult to convert between cash and a cryptocurrency like Bitcoin.
The most famous stablecoins are USD-backed cryptocurrencies such as Tether, Gemini Dollar, and USD Coin. However, other stablecoins use different types of collateral. Some are backed by fiat currencies such as euros or yen, others by commodities such as gold currency.
What To Consider Before Investing In Tether?
Tether can be bought on most major cryptocurrency exchanges, but should you invest in it? Despite many problems in the past, Tether is still a cryptocurrency that is stronger because, at least so far, it has overcome its problems largely unscathed.
Although competitors have popped up over the years, Tether is still the most popular stablecoin and is widely used for trading, borrowing, and compounding. Tether could be considered one of the riskiest cryptocurrencies mainly because of its transparency issues, but it is still important in the cryptocurrency world
Where To Buy Tether in India and Earn High-Interest Rates?
You can buy Tether on many of the major exchange platforms paying between 6% and 12% % Interest only for storing Tether on their platform. You can also request higher interest rates for Tether on coindealings, a cryptocurrency-based peer-to-peer lending platform where you can trade Tether in India.
Is Tether a Good Investment?
With the creation of Tether and other stablecoins, it is quick and easy to exchange any cryptocurrency for Tether, while converting a cryptocurrency to cash would take days and cost transaction fees. This creates liquidity for the exchange platforms with no-cost exit strategies for investors and gives investors flexibility and stability.
In addition, Tether can be sent anywhere in the world much faster and with lower fees than transfers from traditional banks and financial institutions. Most people wouldn’t use Bitcoin or Ethereum for everyday purchases, and transactions because of their high volatility make perfect sense to use Tether.