USDTUSD | Tether USD Analysis 6 Nov ’22

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Tether @Tether_to is fiat-collateralized stablecoin that offers individuals the advantages of transacting with blockchain-based assets while mitigating price risk. Tether is primarily issued on the Ethereum and Bitcoin blockchains and corresponds on a 1:1 basis with US Dollars sitting in bank accounts.

Contents:

  1. Why Is Tether?
  2. How Does It Work?
  3. Tether vs. Bitcoin
  4. Tether Performance
  5. Macroaxis Analysis
  6. How To Invest In Tether
    1. * Buy USDT through an exchange
    2. * Purchase fractions of Tether through an exchange
    3. * Trade Tether through a broker
    4. * Invest in USDT through an exchange-traded fund (ETF)
  7. USDT Price Live Data
  8. Risk/Return Insights
  9. Trading Advice
  10. Trading Tips
  11. Bottom Line
  12. Related Content

Why Is Tether?

  • Tether (USDT) is a popular stablecoin that crypto enthusiasts have used for years to leverage their cryptocurrency trades.
  • USDT is pegged to the U.S. dollar, and in theory it should be unaffected by the market volatility that can so dramatically impact the valuation of other cryptocurrencies, such as Bitcoin.
  • The idea is that 1 Tether can always be traded for $1, regardless of market conditions. That’s what makes USDC a stablecoin, whose value is pegged to the price of the U.S. dollar. 
  • Crypto traders use Tether to provide steady, reliable liquidity to get in and out of other cryptocurrency trades without facing unpredictable losses (or gains) from volatile price changes.
  • Tether the most liquid cryptocurrency—beating even crypto market stalwarts Bitcoin (BTC) and Ethereum (ETH). It’s also among the top three largest cryptos by market capitalization.

How Does It Work?

  • When a user deposits fiat currency into Tether’s reserve, selling fiat to buy USDT, Tether then issues the corresponding digital amount in tokens. The USDT can then be sent, stored or exchanged.
  • If a user deposits $100 in the Tether reserve, then in keeping with a 1-to-1 dollar parity, they will receive 100 Tether tokens. Tether coins are destroyed and removed from circulation when users redeem the tokens for fiat currency.
  • Tether moves across blockchains like many other digital currencies. There are Tether tokens available on various blockchains, such as the original one with Omni on the Bitcoin platform as well as Liquid, in addition to Ethereum (ETH) and TRON (TRX), among others.

Tether vs. Bitcoin

  • Tether is a stablecoin … tied to a real-life commodity, the USD, while Bitcoin is not tied to any real-world commodity
  • Tether is a centralized crypto, whereas Bitcoin is decentralized by not being linked to any real-world currencies. 
  • Cryptocurrencies that are not pegged to a real-world asset or currency are subject to market volatility.
  • Tether seems to be a little more stable because it stays close to the value of one USD, give or take a few cents.
  • Tether isn’t designed to necessarily make money but rather be a stable store of value.

Tether Performance

Compare USDT vs BNB

Compare Tether Performance 1D
Compare Tether Performance 1W
Compare Tether Performance 1M
Compare Tether Performance 1Y

Macroaxis Analysis

  • Tether generated a negative expected return over the last 90 days
  • Tether has some characteristics of a very speculative cryptocurrency
Macroaxis USDT analysis

Tether is trading at 1.0 as of the 6th of November 2022, a No Change since the beginning of the trading day. Tether has 50 percent odds of going through some form of financial distress in the next two years and has generated negative returns to investors over the last 90 days. Cryptocurrency ratings for Tether are calculated daily based on our scoring framework. The performance scores are derived for the period starting the 8th of August 2022 and ending today, the 6th of November 2022. Click here to learn more.

Tether is peer-to-peer digital currency powered by the Blockchain technology. More on Tether

How To Invest In Tether

You need to understand the risk of getting into digital currencies such as USDT before investing. The dangers of trading cryptocurrencies are mainly related to their volatility. They are high-risk, speculative, susceptible to errors and hacking, mostly unregulated, and can be affected by forks or other discontinuation events. As an investor, you must understand these perils before you start trading. You can get a long position in Tether in four ways:

* Buy USDT through an exchange

Get yourself a crypto wallet before embarking on your Tether journey. Crypto wallets exist as desktop applications, mobile apps, or websites, allowing you to secure your tokens or digital coins. Your crypto wallet stores the private keys to your tokens on the blockchain. Once you have a wallet, visit a reputable exchange and sign up for an account. You will need to complete the KYC process to be allowed to purchase Tether. But before you can buy the tokens, you have to provide a photo of your ID and proof of address, as well as a selfie. The platform will also require you to secure your account with 2FA before you can fund your account and buy the digital coins.

* Purchase fractions of Tether through an exchange

You don’t have to buy a full token when starting out since USDT is divisible by several decimal places. This allows you to purchase tiny fractions worth cents, but because of network fees, most platforms have a minimum figure, such as $10. You can then build your portfolio with time as you gain more confidence and learn the ropes of crypto trading.

* Trade Tether through a broker

If you don’t want to store your Tether Crypto Coin yourself for one reason or another, you can still trade through a broker. Brokers hold your tokens and trade frequently to generate profits. In addition, many brokerage platforms offer derivative products, such as contracts for difference, that enable you to speculate on price movements. Such products also allow brokers to accommodate leverage trading, potentially multiplying your profits.

* Invest in USDT through an exchange-traded fund (ETF)

You can also invest in USDT through an exchange-traded fund (ETF). This instrument helps track an asset or select assets. You can buy and sell them on stock exchanges, making them the best option for an average investor. Some ETFs may comprise several coins to spread risk across a portfolio. Such ETFs are created and controlled by picking a basket with several coins, while favoring those that have performed well in the recent past.

USDT Price Live Data

The live Tether price today is $1.00 USD with a 24-hour trading volume of $48,915,558,632 USD. We update our USDT to USD price in real-time. Tether is down 0.01% in the last 24 hours. The current CoinMarketCap ranking is #3, with a live market cap of $69,362,333,924 USD. It has a circulating supply of 69,360,692,564 USDT coins and the max. supply is not available.

If you would like to know where to buy Tether at the current rate, the top cryptocurrency exchanges for trading in Tether stock are currently BinanceOKXXT.COMCoinTiger, and Ecxx

Tether current price, market cap, volume and supply.
price chart
market cap 1Y

Risk/Return Insights

Return On Investment:

24H +0.00%

7D -0.02%

1M -0.02%

3M -0.06%

1Y -0.16%

Risk Metrics:

Sharpe Ratio (30D) -0.82

Sharpe Ratio (90D) 0.11

Sharpe Ratio (1Y) -1.15

Sharpe Ratio (3Y) -0.87

Volatility (30D) 0.01

Volatility (90D) 0.01

Volatility (1Y) 0.04

Volatility (3Y) 0.08

Sharpe ratio

Trading Advice

Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Tether is ‘Hold’. Macroaxis provides Tether buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Tether positions. The advice algorithm takes into account all of Tether’s available fundamental, technical, and predictive indicators you will find on this site.

USDT trading advice

Trading Tips

  • Tether (USDT) is a stablecoin, a type of cryptocurrency pursuing a steady valuation.
  • Tether is the first and best-known stablecoin in the crypto world. Other stablecoins include True USD (TUSD), Paxos Standard (PAX), and USD Coin (USDC).
  • While Tether has dropped below $1 before (and risen above its peg) on occasion, it can remain near that price so long as it continues to redeem USDT tokens for $1 each.
  • Tether is used by investors who want to avoid the volatility typical of cryptocurrencies while holding funds within the crypto system.
  • A stable value promotes the use of stablecoins as a medium of exchange like conventional money.
  • In practical terms, stablecoins have made it easier to speculate in cryptocurrency markets.
  • Tether helps investors move funds between cryptocurrency markets and the traditional financial system, minimizing volatility as a result of its 1-for-1 peg to the U.S. dollar. 
  • Tether tokens can be bought and sold on cryptocurrency exchanges including Binance, CoinSpot, Bitfinex, and Kraken.

Bottom Line

Tether could be a good buy for specific crypto investors. It’s an ideal choice for liquidity when looking for a way of getting in and out of other cryptocurrency trades. Some crypto experts like Najah Roberts, CEO and founder of Crypto Blockchain Plug, remain cautious of Tether because of its treasury strength.

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