When you’re looking to invest in cryptocurrencies, it’s important to do your research first. One coin that has been increasing in popularity lately is Tether (USDT). This article will explain what USDT is, how it works, and why it might be a good investment for you to make on KuCoin. So, if you’re thinking about investing in Tether, make sure to read this post first!
Let’s get started.
What is Tether?
Tether is a digital token that is pegged to the US dollar. This means that each Tether is worth exactly $0.01. The value of Tether does not fluctuate like other cryptocurrencies, which makes it a good choice for those who want to invest in crypto without having to worry about the volatility of prices.
Tether is a popular choice for those who want to buy crypto because it is one of the most stable coins on the market. KuCoin is one of the few exchanges that offer ethusdt trading pairs. KuCoin users can trade USDT with BTC, ETH, NEO, and KCS.
Things to Know Before Buying Tether
- Tether is a Stable Coin
The first and most important thing to know is that Tether is a stable coin. This means that its price is pegged to the US dollar. Because of this, it can be used to trade or hold USD without having to own any USD. This makes it a very useful tool for traders looking to avoid volatility.
However, it’s important to remember that Tether is still a cryptocurrency. This means it’s subject to the same volatility as any other crypto. So, while it can be used to avoid volatility, it can also be used to take advantage of it.
- Tether is a Centralized Asset
Another thing to know is that Tether is a centralized asset. This means that it is not decentralized like Bitcoin or Ethereum. The company behind Tether, iFinex, holds the reserves of USD that back the supply of USDT in circulation. Because of this, there is always the risk that iFinex could manipulate the price of USDT by printing more tethers than they have USD in their reserves. However, so far, there has been no evidence of this happening.
- You can buy Crypto with Tether
Tether allows you to buy, hold, and trade cryptocurrencies without worrying about the volatility of prices. You can use Tether to buy Bitcoin, Ethereum, Litecoin, and other popular currencies. This is a great way to get started in the world of cryptocurrency without putting down a lot of money. Tether is one such stable coin that can help you in these cases.
- The Company Behind Tether is Controversial
Tether Limited is the company behind the USD₮ token, commonly known as simply Tether. The company has been embroiled in controversy for years now, with critics accusing it of everything from fraud to money laundering. Tether has denied all these allegations, but it hasn’t been able to shake off the bad publicity.
If you’re considering buying Tether, we suggest you consider no platform other than KuCoin. The platform offers the ethusdt trading pair, which is a much better option than Tether.
- Tether Manipulates Bitcoin’s Price is just a Rumor
Some in the crypto community have accused Tether of manipulating Bitcoin’s price. However, there is no evidence to support these claims. Tether is a stablecoin that is pegged to the US dollar. Each tether is backed by one US dollar held in reserve. Tether is used for trading on cryptocurrency exchanges and can be redeemed for USD. If you’re considering buying tether, do your research and understand the risks involved.
- The Price Tether has fluctuated from $1
The intended price of Tether will be $1. Although, the price has been as low as $0.91 and as high as $0.96. You should be aware that there is a possibility that the price could change again in the future. Tether is a digital asset, and like all digital assets, its price is volatile.
The Bottom Line
Tether is slightly different from other digital currencies because it’s backed by real currency. However, it’s still essential to understand how the technology works and what you’re getting yourself into before investing any money. KuCoin is one such amazing platform where you can buy USDT.