Homework task 6 by professor @yohan2on Tether(USDT)

in SteemitCryptoAcademy4 years ago (edited)

Hi there, it's always a pleasure to participate in the crypto academy class thanks to professor @yohan2on and @steemitblog for this wonderful initiative.

USDT stable coin

usdt-towers-over-30-stablecoins-tethers-market-cap-grew-by-2-million-percent-in-just-four-years.jpg

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Without a doubt, the stable coin has been of great importance in the crypto space, as a trader, I've taken advantage of these stable coins to counter market liquidity and price movement and I would say it's a good idea against price market movement.

Although the stable coin has its limitation, let's say I exchange/convert my BTC to USDT, and at the time of my exchange BTC was has decreased in price and fall to at least -8% and before the day runs out there was a drastic change in the market price which made the price of BTC move and increased with +12%.

This is where a trader has probably missed out on the BTC pump.
In general, term when a trader convert his crypto to any stable coin there is no chance for such trader to enjoy an increase or decrease in market price movement.

Tether having a tradable sign (USDT) is a blockchain-based cryptocurrency that is pegged or backed by traditional fiat currency such as dollars USD.
Tether falls under the category of the fiat-Collateralized coin which means it is backed 1:1 with US dollars.

The sole aim behind the introduction of the tether stable coin was to maintain price stability in the crypto space as daily market liquidity can result to lose of or drop in bought crypto coins the use case of stable coin is to make sure traded or Hold token loss are reduced to minimal.

In simpler terms tether is more likely to be a security coin used against market liquidation.

Use case of the tether stable coin

Aside from being a security base asset against market liquidation, the tether is found to be one of the most paired crypto coins in exchange platform is can be found that tether stable coin is likely to compatible for trade with any available coin or altcoin listed or added to any exchange.

Limitations

Tether has been in the market since 2014 and since then the stable coin has faced several lawsuits from different bodies there is still controversial deliberation if the coin is backed or supported by U.S. dollars also there has been much security breach that has led to the loss of tether from some popular exchange in late 2018.

Conclusion

With the available use case of the tether or stable coins in general traders and investors have secured their assets against price liquidation also it can be found that the tether is likely compatible and tradable with any paired token in exchanges today.

Thanks for stopping by.

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Hi @mccoy02

Thanks for attending the 6th Crypto course and for your effort in doing the given homework task.

Feedback
I see you are improving steadily in the presentation of your work. This is good work. Keep it up! and continue working hard.

Aside from being a security base asset against market liquidation, the tether is found to be one of the most paired crypto coins in exchange platform is can be found that tether stable coin is likely to compatible for trade with any available coin or altcoin listed or added to any exchange.

Indeed, Tether is a compatible stable coin that is often paired with a good number of Cryptocurrencies in the trading exchanges.

Homework task
6

 4 years ago 

Thanks for the feedback really appreciate best regards

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