What is the Tether cryptocurrency and is it possible to make money on it?
We've become accustomed to the fact that most people perceive cryptocurrencies solely as a source of investment or as an asset for quick profits.
But this is only one of the opportunities offered by digital money; in fact, this type of currency was created for other purposes.
Bitcoin's primary goal was to provide complete anonymity, preserving the identity of the token owner.
This payment method was intended to be used for goods and services when the counterparty wishes to conceal their identity.
This approach allows for concealing income and avoiding taxes, as in many countries, tax authorities monitor not only income but also expenses.
A typical situation is when Bitcoin loses more than 10% of its value in just a few days. This means that during a downtrend, you instantly lose 10% of your money. As a result, you either have to wait for the price to rise or use cryptocurrencies for transactions only during periods of price appreciation.
To eliminate this shortcoming of cryptocurrencies, Tether was created.
Tether entered circulation in 2015, issued by a company of the same name, Tether Limited. Its developers believed its main feature would be a stable exchange rate, which would make Tether more convenient to use in transactions.
For these purposes, the token's value is pegged to the US dollar exchange rate, and the company's accounts hold funds equal to 20% of the value of tokens in circulation.
Overall, these expectations have been met, and throughout its existence, Tether has never fallen in price or risen in value by more than a couple of percent against the US dollar. Today, its exchange rate is indeed $1:
The cryptocurrency is in fourth place by market capitalization, which currently amounts to approximately 20 billion US dollars.
Earning money with Tether cryptocurrency
In our case, the token's stable price isn't an advantage, but rather a disadvantage. Tether is convenient for transactions, but not so convenient for making money.
Its low volatility prevents tens of percent profits within a few days. While you can play on fluctuations, price movements will yield significantly less profit than with other cryptocurrencies.
This is fair, however, as you can choose other cryptocurrencies for trading , while using Tether for its intended purpose—anonymous online transactions.
