USDT Tether: Strengths, Weaknesses, Risks

Tether is a stablecoin, taking leading positions in crypto ranking with over $67,9 billion market capitalization. The asset’s name says for itself – its value is stable, unlike the price of all other cryptos in the market. The fact is that the Tether price is always around one dollar. The asset is 80% supported by the US dollar reserves. Since the dollar and euro rates are in line today (mid-September 2022), the rate of USDT to EUR is close to 1 (1,0008).

Strengths of Tether:

  • USDT Tether is used for hedging risks during trading. When an investor wants to preserve his funds amid the dropping market, one converts his savings to USDT. In that way, he still stays in the market but avoids its collapse.
  • Money transfers in USDT are popular worldwide. It is much cheaper and faster to send money in USDT than to go through a long process in a bank. 
  • Tether price is always around the dollar, and market trends do not affect it.

Among Tether’s weaknesses, we can notice that it is not a speculative asset, which means it is not crypto for investment but for hedging risks. However, it is more a benefit than a disadvantage.

Another Tether weakness is uncertain regulatory status. The Tether Limited company has changed bank partners many times throughout its existence. It raises questions concerning its legitimacy.

Are there Risks in Buying Tether?

If you buy Tether, you do not take a risk. Since this asset is not subject to market fluctuations, buying USDT, you keep your funds in dollars equivalent.

Tether is traded on all big crypto exchanges. Centralized platforms like WhiteBIT or Coinbase allow trading pairs with fiat currencies. For example, you can convert Tether USD and withdraw your funds to your bank card, thus, cashing our live dollars.