Is USDT a Good Investment?

Since cryptocurrency is booming, the news about new coins continues to arrive, and the sphere of digital money doesn’t cease to attract investors. Some coins start as popular assets and then fall without recovering, whereas some start as not very promising coins and grow into great stores of value, selling at high prices.

Still, the horizon of worthy cryptocoins goes further beyond the ever-famous Bitcoin, Ether, and Dogecoin. Tether is one of the tokens that rapidly grew in popularity and acquired hundreds of fans. The main reason is that USDT was the first coin to link its value to fiat currency. 

This article will reveal the pros and cons of investing in Tether so keep reading. 

What Makes Tether Stand Out and What Are Its Advantages?

In simple words, Tether is a stablecoin with a value pegged to the US dollar. So, 1 USDT will always be equal to 1 USD. Being a stablecoin means that the asset is more independent from market fluctuations than other coins. 

The advantage of Tether also shines when you need to make transactions of exchanging to USD. In such cases, Tether can make bank operations speed up and reduce risks connected to them. 

All in all, we have found more pluses of the coin which altogether are reasons to consider USD as an investment. 

  1. Stability and aligning with the US dollar.
  2. High capitalization.
  3. Being used for making a variety of virtual purchases, including other cryptocurrencies and NFTs. 
  4. Being a good option for earning interest while lending to others. 
  5. High level of usage and acceptance by the crypto community. 
  6. Quick transactions and low fees. 
  7. Being fit for holding and long-term investments. 
  8. Support of actual fiat currency reserves.

This being said, Tether is perhaps one of the easiest digital currencies to convert to fiat and vice versa, exchange USD to USDT.

So, USDT seems like a perfect investment spot for those who long for a less risky yet promising deal and are not against holding the coin for a little longer. 

Minuses of Investing in Tether and Major Issues

Like every other coin out there, Tether might also have disadvantages and difficulties users face in the market. 

  1. No mining opportunities. 
  2. A higher centralization (the coin is not totally ‘free,’ and most of the coins are stored in 104 wallets with its holders having a powerful impact on the USDT price).
  3. Challenges when it comes to selling USDT in bulk on Tether exchanges and the official company’s site. Users have to provide document scans to prove identity, so it’s also the issue with anonymity. 
  4. Lack of transparency. 

Now, despite claims of Tether Limited that there are fiat reserves for the whole supply of Tether coins, facts prove it wrong. There is currently a lawsuit against the coin provider initiated by the US Commodity Futures Trading Commission centered on the issue that the company faked data. 

Even though the major part of the collateral was declared after that, the company still doesn’t disclose all the info.

The coin has also ascribed the lack of security, which is supported by the claims that it was hacked in November 2017, and the coin amount worth $31 million was stolen as a result. However, we don’t include it in the downsides because a lot has changed since that time. 

Where to Buy Tether Securely and Without Worries?

To save your time looking for places to purchase some Tether, consider – the exchange service where one can convert dollar to USDT, SOL to dollar, as well as many crypto pairs in a single click. 

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