Along with time and technology, the concept of money has also changed. Let us take a minute here to shed some light on the most recent and trending forms of money. The format of money that we are talking about here is cryptocurrency. Although it has been in the market for quite some time now, the concept of cryptocurrency is not a widely accepted one. While in some parts of the world, cryptocurrencies have a dream run, not everyone knows how the cryptocurrencies work, for the concept still stays implausible to many.
How does one decide on which cryptocurrency to invest, given the volatile nature of it? With every cryptocurrency competing to head the race, some badly fall back to lower positions and some shoot up to unprecedented posts. As a user, we cannot completely predict the results of the competition running the market. Nevertheless, anyone who uses it should always have an idea of the working of the cryptocurrency market, its potential dangers and functioning profiles. It is quite hard to gather the information of these market updates and comprehend them in its exact real sense, for the complexity of the matter is grave. To unfold the intricacies of the subject and understand its operations, and also to keep up with the daily updates of the cryptocurrency market, visit www.forex.academy.
Leader and contemporaries
Bitcoin is the very first cryptocurrency that was launched a decade back. It is still in the game and is one of the leading cryptos. Although, there are thousands of cryptocurrencies, the one that is supposedly leading the game now is Tether. There are numerous other Altcoins as well, including Litecoin, Ether, Ripple, Dogecoin and many more. Speculations state that Tether leads the market although official statements or reports have not yet been released on this. It is presumably the one that stands at the highest profit rate and market cap, which was the position that reportedly belonged to Bitcoin.
All the users must know that the scenario might not be exactly like in the news, which stands in favor of Bitcoin.
The market capitalization value of Tether is about 30 times smaller than that of Bitcoin, and the volume of Tether crossed that of Bitcoin’s, earlier this year. Tether remains the most valuable cryptocurrency in the market for its stability, with the trading volumes of Tether standing at about 18% higher than that of Bitcoin, thereby making it the leader in the game. With official reports yet to be out, analysts have come up with speculations of the market turnover of Tether, potentially quashing all the past accomplishments of Bitcoin and all other contemporaries.
What is Tether?
Tether is a stablecoin that has its value pegged with the US Dollars (while stablecoin can be pegged to cryptocurrency or fiat money) and it has come out as the best and most popular stablecoin which minimizes the volatility of the price. Tether also provides a path for traders into the crypto market with it being pegged to the Euro, which is another main currency that runs the world economy.
No one officially owns Bitcoin, but Tether is owned by a Hong-Kong private organization that also owns the Bitfinex crypto exchange. Although, Tether claimed to have 100% reserve earlier, in the current scenario with the frequent updates coming, Tether claimed to have only 74% of reserves. The complete coverage by fiat reserves remained a big question with Tether not being audited separately.
With all this said, some factors have cemented Tether in the position that it is today. The factors mentioned below are the ones that most users look up to:
- It provides a more secure pathway for payment with the use of blockchain. Tether also offers users the facility to transfer cash into digital money.
- Various cryptocurrency platforms lacked the transactions through USD, which after the inclusion of Tether into their list, was made possible. This further made their platforms more robust, and they were given a broader opening to the market.
Purpose of Tether
Tether is a stablecoin that was made to give liquidity to the digital money and also as a form of imposing restrictions on market volatility. It also makes the stablecoin a less risky option this way.
Traders with a narrow range of trade options are the ones who make the most out of the price stability factor of Tether; else the traders will have no viable options in terms of the liquidity the market offers.
Tether is one great option
The current position of Tether has repressed many speculations and predictions on its instability and short-life. It has even created numbers more than that of the pioneer Bitcoin, making it a good option for investors. Users are likely to get confused about which cryptocurrency to invest in, with the volatile nature of the market. With Tether, the said volatility has also been broken to an extent, thereby making it the best option and the stablecoin with the highest potential.