October 2, 2023

Why is Tether at the heart of crypto market investing?

Why is Tether at the heart of crypto market investing?

Nowadays, everyone is remotely familiar with the digital market and perhaps, they can name a few of them like Ethereum or Bitcoin. But at the heart of the cryptocurrencies’ world, there is Tether as a stablecoin that its price is always stable and equals to one US dollar. But how?

Issued by the company Tether.ltd, it can be one of the biggest schemes in financial history. Unlike other coins like Bitcoin, Tether’s value is not influenced by the forces of the crypto market but is rather pegged to the US Dollar. In the following, we will review why Tether plays an important role in the crypto market and what will happen if it malfunctions.USDT to PayPal USD

What is a stablecoin?

Stablecoins are a kind of cryptocurrencies attached to other coins to decrease volatility and to play the role of an intermediary between hard currencies like fiat money and digital tokens like cryptocurrencies.

Simply saying, 1 Tether USDT will always be worth exactly 1 USD. Tether has issued more than $80bn of coins making it the largest stablecoin in the digital market and a source of liquidity for the crypto economy.

Why is Tether so popular?

USDT is the oldest stablecoin on the cryptocurrency market and continues to dominate its usage. Like other stablecoins, USDT is also used on “yield platforms” that lend digital tokens at a higher price than they offer to customers.

Another reason for USDT popularity is that Tether can be moved faster on the blockchain rather than US dollar. This is while the US Dollar can be moved via wire bank transfer.

Traders and investors who are active in cryptocurrency use Tether as a way to protect their funds from market volatility.

How to exchange Tether to other currencies?

Trading cryptos using fiat money is difficult and may lead to a big loss according to the volatility of the market. Also, purchasing one type of cryptocurrency like Bitcoin via another coin like LiteCoin can be difficult due to the constant shifting values of both coins. This is where Tether comes in.

USDT allows traders to buy and sell volatile digital assets faster with much less fee. It actually acts like a bridge between the cryptocurrency market and the traditional financial system. When you are buying or selling cryptos, you have to pay a separate fee for each. Using Tether, you just need to use fiat money once for buying that.

Exchanging Tether to other cryptocurrencies is something that most exchange servicers have provided so far. But have you ever heard about exchanging cryptos to electronic money such as Perfect Money, WebMoney, Payeer, and paypal?

An online payment service called PayPax enables users not only exchange cryptocurrencies, but also exchange USDT to PayPal USD and other e-money.

The only thing you need to do is register and verify your account (optional). After that, you can see a world of trading opportunities ahead.

Something that may be a problem for most traders is the high exchange rate, but PayPax ensures you for the least amount of fee for each transaction.