While there is incredible excitement in the cryptocurrency world, there are those delving into the world and exploring it from new angles. 

Tether (USDT) is one of the most popular Stablecoins. It was developed as an asset-backed by the US dollar at a ratio of 1 to 1. The coin is available on many blockchain networks and has experienced increased trading volume and liquidity over the past few years. In this article, we will learn about USDT cryptocurrency, do a little analysis and find out why you can buy USDT.  

Tether (USDT) is a token pegged to the dollar
Tether (USDT) is a token pegged to the dollar

About the Tether project 

Tether (USDT) is the first company globally to create a platform in which it combines the functions of cryptocurrency and fiat. Tether operates on blockchain technology. The developers of Tether took the Bitcoin blockchain for their project, so it is fully secure.

What is Tether Stablecoin (USDT) 

Tether Stablecoin is a digital asset, the exclusive feature of which is digital equivalents of real currencies. Due to this feature, Tether cryptocurrency is free of speculative aspects. Sometimes, that fact scares people away from the cryptocurrency sphere. 

The Tether platform can convert US dollars, euros and Japanese yen into a stablecoin called Tether. Tether then has 100 per cent security on its coins, i.e. 1 USDT, which is the ticker symbol of a Tether coin. So it is equal to 1 USD. And 1 EURT equals 1 EUR. 

As you see, the ticker of a stable coin changes depending on the currency that is converted into it, with the letter "T" added to the currency's name.

Tether functions on a BTC blockchain and a blockchain synchronization algorithm  Proof-of-History (PoH)
Tether functions on a BTC blockchain and a blockchain synchronization algorithm Proof-of-History (PoH)

Features of the USDT cryptocurrency

There are many benefits to using this altcoin. The most glorious of which is the speed at which the US currency can be transferred via the Internet. The digital dollar (USUT) differs from other cryptocurrencies tied to physical money. But Tether has created more than just the ability to transform dollars into tokens. It is a powerful platform for working with any currency and various services. 

Tether coins are convenient because traders don't need to recalculate the value of the tokens relative to traditional money. The price of USDT is immediately understandable - it is constantly equal to the cost of the American dollar. 

So, why do many people want to buy USDT? Looking at the cryptocurrency in question, the following advantages can be seen: 

  • High speed of conversion transactions. 
  • USDT is almost fully secured with real money.
  • Transparency of the system.
  • Decentralisation, which is inherent in the blockchain system.
  • Lack of commissions when transferring USDT between different wallets (from exchange to wallet and back).
  • Minimal commissions when converting USDT into traditional money.
  • Security of transfer and storage of USDT is provided by cryptographic encryption methods.
  • Users have access to their money (which they store in USDT) around the clock.
  • USDT is an excellent asset for trading. 
USDT offers opportunities  to secure funds and  its constantly finding new solutions for faster transfers
USDT offers opportunities to secure funds and its constantly finding new solutions for faster transfers

More and more companies and people are eyeing USDT. Many are looking to buy Tether to preserve their volatile assets when threatened with a downturn in value. USDT's value proposition is limited by its stability, but its stability is also its main advantage. 

Technical and fundamental analysis of USDT

Many people seriously believe that both of these types of analysis in the cryptocurrency market have little practical applicability. For example, for technical analysis (TA), critics usually argue that digital assets are "extremely volatile", "unlike other markets", highly influenced by news, etc. 

In particular, in their view, the dizzying growth of bitcoin in 2017 (about 1300%) makes it entirely unnecessary to dive into the wisdom of TA because to get tangible capital gains, one needs only to follow a Buy&Hold strategy in cold blood.

There is certainly a rational basis in all these statements. However, it is possible to combine long-term investments with trading. The practice of trading cryptocurrencies can bring a lot of valuable experience, especially if the approach is comprehensive, based on cold calculations, excluding impulsive and unreasonable decisions.

This market does have some peculiarities, though.  The market is very much dependent on high-profile news, reports of developer achievements and high-profile statements by prominent economic and political figures. Because the overall capitalisation of digital currencies is still relatively small, and the analysis methodology is still in its infancy.

For example, at one time, the cryptocurrency market was decisively influenced by news and just rumours from China. Soon, South Korea, the US, Japan, and other cryptocurrency-friendly jurisdictions took over as the market's control room.

Causes of price fluctuations

The leading cause of fluctuations in the price of any asset is the change in the balance of supply and demand. However, this is a very generalised explanation. To better understand the causes of these changes and make any predictions for the future, various factors need to be analysed. The latter can be divided into intra-market and external factors.

The digital currency is based on an open-source Omni Layer protocol that works with the blockchain
The digital currency is based on an open-source Omni Layer protocol that works with the blockchain

The first group includes the following factors:

  • Influence on the price by many traders. The influence of large players, so-called "whales", on the market is especially noticeable. At the same time, there is a strong correlation: the more significant the capitalisation of a cryptocurrency, the less the influence of prominent players, and vice versa.
  • Cross-impact of different currencies. For example, often, when the price of bitcoin rises sharply, most altcoins fall. This happens because many market participants tend to "jump in" to a rising bitcoin, and thus there is an outflow of funds to the first cryptocurrency. There is also often an inverse correlation between the price of Bitcoin and the price of its most liquid fork, Bitcoin Cash.

It follows from the above that when analysing a particular cryptocurrency, one should pay attention to general market trends and the state of affairs of competing and interrelated cryptocurrencies. 

If you want to buy Tether ( or any other asset), it is advisable to research as many aspects of the coveted asset as possible.

In the cryptocurrency market, stablecoins perform as a buffer
In the cryptocurrency market, stablecoins perform as a buffer

External factors can also have a significant impact on cryptocurrency prices. Let's highlight some of them:

  • Decreasing confidence in the global financial system and national (fiat) currencies. For example, devaluation of national currencies often leads to increased demand for bitcoin, which more and more people begin to perceive as a means of preserving value.
  • Tighter regulation of the economy, increased tax pressure on businesses, questionable measures by national banks (e.g. the demonetisation of the Indian rupee, which has caused severe cash shortages), decisions by international organisations to combat money laundering through offshore jurisdictions, etc. In one way or another, all of these are driving demand for crypto-assets.
  • Legislative changes in countries with a sizable domestic cryptocurrency market. For example, legalisation of cryptocurrencies in Japan, stricter regulation of exchanges in South Korea, etc.
  • MEDIA. Crypto investors' attitude to the news must be balanced and critical.
USDT offers opportunities  to secure funds
USDT offers opportunities to secure funds

Features of fundamental analysis of cryptocurrencies

Fundamental analysis is designed to assess the actual value of an asset, determining whether its price is currently in line with market realities.

In the world of cryptocurrencies, things are much more spontaneous and unpredictable. You could say that every new day is different from the previous day. This, in turn, makes it difficult to predict market trends and individual coin prices over the medium to long term. So keep that in mind when you're looking to buy Tether. 

If you plan to invest in Tether, you should pay attention to many fundamental factors.

Among them:

  • The project team, its reputation and the background of the key players.
  • The roadmap of the project, describing the medium to long term development plans.
  • Relevance of the problem to be solved by the project (demand for the product on the market).
  • The content of the project's white paper.
  • Peculiarities of monetary policy, including the maximum amount of supply, emission features, speed of block generation, frequency of rewards reduction for miners (if any), etc.
  • Cryptocurrency capitalisation, trading volume, price volatility.
  • Transaction volume and average fees.
Tether tokens is an alternative to traditional currency deposit and withdrawal methods
Tether tokens is an alternative to traditional currency deposit and withdrawal methods

Issuance of USDT coin

The company has decided not to limit the issuance of new stablecoins. It shows a relatively rapid issuance rate, which has repeatedly caused excitement among crypto investors and regulators, as they were wary of market fluctuations.

The generation of new tokens increases the capitalization of the project.

A mechanism to limit issuance is usually needed for cryptocurrencies to combat high volatility and inflation. But Stablecoin does not need it. Therefore, the lack of restrictions is justified.

USDT capitalisation: 74.14 billion.

Tether opens up decentralized, peer-to-peer networks to a variety of commercial uses
Tether opens up decentralized, peer-to-peer networks to a variety of commercial uses

Where to buy USDT token

Tether cryptocurrency cannot be mined. It can only be bought. USDT cryptocurrency is traded on almost all major cryptocurrency exchanges. For example, you can buy Tether in Hong Kong on the Binance exchange. Always choose reliable exchanges. 

How to invest in Tether (USDT)?

How else can I get USDT coins? You can apply to generate new tokens on the company's official website.

The option is only available to verified users with a verified account. The administration does not approve all accounts, sets quite a high identity verification fee ($150). Minimum deposit in fiat: $100,000. This method is suitable only for large investors.

However, another convenient way to invest in Tether in Hong Kong is another convenient way. Staking. 

You can stake or lend Tether  tokens  to earn on cryptocurrency
You can stake or lend Tether tokens to earn on cryptocurrency

Stacking is when a user locks or holds their funds in a cryptocurrency wallet to keep the blockchain system running with a proof-of-stake (PoS) algorithm. This process is similar to crypto-mining because it helps the network reach consensus and provides rewards to users who participate.

Choose whichever option you are most comfortable with. Then, experiment, consider the risks, learn and always strive to achieve your goal. This path is how you will get what you want. Good luck!

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