When Should I Buy Tether?
Tether, the biggest stablecoin in the world, has been under intense pressure in 2022. The ongoing cryptocurrency crash has led to less demand for the coin. Similarly, the collapse of Terra USD and several other stablecoins like Neutrino, has pushed more people away from stablecoins. As a result, Tether’s market cap has dropped from over $82 billion to about $66 billion.
Is Tether a good buy?
A stablecoin is a cryptocurrency that is backed by another asset. In most cases, stablecoins are backed by fiat currencies like the US dollar and the euro. The goal is to make it easy for people to trade and invest in digital assets online. For example, trading using fiat currencies like the US dollar in decentralized exchanges (DEXes) is significantly difficult.
There are two main types of stablecoins. First, there are centralized stablecoins that are governed by an individual company. Examples of these are Tether and USD Coin. These coins are backed by fiat currencies that are usually stored in banks. They are also supposed to be audited by a leading financial auditor.
Second, there are decentralized stablecoins that are governed by a decentralized autonomous organization (DAO). A good example of this is Neutrino and USDD. These coins are usually backed by a basket of cryptocurrencies like BTC and ETH.
Tether has struggled partly because of concerns about its reserves. In the past few years, there have been concerned about whether Tether is fully backed on a 1:1 basis.
In a court filing this week, a judge said that Tether should produce its audited financial backing. This ruling was part of an ongoing court case that alleges that Tether conspired with others to inflate Bitcoin prices. Tether, and its parent company Bitfinex, has denied any wrongdoing.
When should you buy Tether?
Unlike other cryptocurrencies, Tether is not bought as part of investment since its value stays the same. Instead, the stablecoin is bought to facilitate transactions in the blockchain industry.
Therefore, in our view, we believe that you can buy Tether since it has proven itself to be a worth stablecoin. Unlike other stablecoins like Terra USD, Tether has maintained its peg for years.
In addition, Tether is an audited stablecoin, which should give you peace of mind. It is audited by BDO Italia, which is part of the broader BDO firm. In a statement, BDO confirmed that Tether owned fiat currencies and that it reduced its commercial paper holdings.
How to buy Tether
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
Kucoin is a cryptocurrency exchange which offers over 200 cryptocurrencies.
Kucoin has a wide range of services, such as; a built-in peer-to-peer exchange, spot and margin trading, bank level security and a wide range of accepted payment methods.
Users can benefit from a beginner-friendly interface and relatively low fees.