Buy USDT (Tether): Prove Stability with $100 Billion Market Cap

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Bittime -The crypto market is experiencing a boom, and Tether (USDT), the world's most popular stablecoin , is a major player benefiting from this growth. 

USDT: The Bridge between Traditional and Crypto Worlds

USDT is issued by Tether, founded in 2014. Originally known as "realcoin", USDT is a crypto token whose value is pegged to the US dollar. This means that 1 USDT always tries to maintain a value equal to $1 USD.

The uniqueness of USDT lies in its function as a bridge between the world of traditional finance and the digital asset market. USDT provides liquidity for market participants to trade and lend crypto assets. In addition, USDT is also increasingly being used for fund transfers and deposits, especially in developing countries, as an alternative to the traditional banking system.

Bull Market, USDT Market Cap surge

USDT's market value skyrocketed during the 2020-2021 crypto bull market, surging from $4 billion to $83 billion by mid-2022. USDT became the primary trading pair for cryptocurrency prices on centralized exchanges.

However, Tether's journey has not always been smooth. The company has faced criticism for less than transparent reserve management, with risky backing assets such as Chinese commercial paper and credit to bankrupt crypto lender Celsius, as well as a lack of independent audits. 

Tether currently has a market capitalization of $100 Billion and states that USDT is backed primarily by safer investments such as US Treasury bills, repurchase agreements, and deposits in money market funds.

USDT Dominance Amid Doubts

Despite facing concerns about its stability during the 2022 crypto bear market, USDT actually experienced a rapid increase last year. This was triggered by several factors, such as a regulatory crackdown on the Binance-issued BUSD stablecoin and the US regional banking crisis in March 2023, which negatively impacted Circle-issued USDC.

Currently, USDT controls more than 70% share of the stablecoin market which is worth a total of $140 billion. Tether has also become increasingly profitable by taking advantage of rising US interest rates, reporting a profit of $2.85 billion in the last quarter, mainly from yields on its large US Treasury holdings.

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Buy USDT: Weighing Risks and Benefits

With the current surge in the crypto market, buying USDT is an option that many investors are considering. However, it is important to understand the risks:

• Depeg possibility: Even though it is pegged to the US dollar, there is no guarantee that the value of USDT will always be stable. Certain circumstances can cause a depeg, namely the price of USDT to deviate from $1 USD.
• Regulation: Crypto regulations are still evolving, and policy changes could negatively impact USDT and the stablecoin market as a whole.
• Lack of transparency: Tether continues to face criticism for the lack of transparency surrounding its reserves.

Risks aside, there are several advantages to buying USDT:

• Relative stability: Compared to other crypto assets, USDT offers greater price stability because it is pegged to the US dollar.
• High liquidity: USDT is the most popular stablecoin backed by high liquidity, making buying, selling and trading easy.
• Access to crypto markets: USDT provides an easy entry point to crypto markets, allowing investors to participate without the need to purchase and hold volatile crypto assets.

USDT/IDR Price Today on Bittime

Source: Bittime.com

On March 05, 2024, the price of Tether (USDT) was at IDR 15,823 per coin, an increase of 0.18% in 24 hours.

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Conclusion

Buying USDT can be an attractive investment strategy in bullish crypto market conditions. However, it is important to understand the risks involved and conduct careful research before making an investment decision. Discuss with a trusted financial advisor to ensure USDT investments suit your risk profile and financial goals.

How to Buy Tether (USDT) on Bittime

You can buy and sell  Tether (USDT)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Tether (USDT)  is available on Bittime with  the USDT/IDR market pair . To be able to buy  USDT/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn the complete guide on how to buy Tether (USDT) on Bittime . 

Monitor price chart movements  of Tether (USDT) , Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime. 

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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates