CRYPTO ACADEMY WEEK 6 HOMEWORK POST FOR [@besticofinder]||17-03-2021||How To Invest in Cryptocurrencies - A beginners Guide ||

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Hello and good evening to everyone one.Permit me to present my homework post for week 6 of the lecture series by Professor @besticofinder

INTRODUCTION
Cryptocurrencies are digital currencies which runs on the blockchain technology.Examples are Bitcoin, Ethereum,Tether(usdt),Tron etc.
Investing in Cryptocurrency is a smart business but requires proper understand of the Cryptocurrency to invest in.

THE CRYPTOCURRENCY THAT I WANT TO INVEST IN 2021

Among the list of cryptocurrencies,I chose to invest on Tether (USDT).
Tether saves me the cost and stress of moving my cryptos to fiat and from Fiat to crypto.It means I can make profits from using Tether Fiat to buy cryptos at low price and then make profits when the price goes up without involving banks since it serves both as a Fiat and as a Cryptocurrency.

Tether (USDT)
Tether is a cryptocurrency issued by Tether Limited,a Hong Kong based.Tether doubles as a cryptocurrency and also as a fiat:this is possible because the Tether is pegged to $1 by the Tether limited.

Unlike other cryptocurrencies that fall in value from time to time,Tether does not suffer a loss in value,it is always equal to $1 no matter the fall in value of other cryptos.Therefore,it won't be wrong for to say that Tether is a Stable coin.

Infact,Tether(USDT) has solved the problem that scare people away from Investing in Cryptocurrency which is the fear of fall in value.
For instance the 1bitcoin might stay at $50,000 today and may fall to $32,000 the next week.Such scenerio is NOT possible with Tether as the price is maintained at an average of $1 at all times.
This 1 Tether to $1 pegging gives investors the assurance that their Tether is intact and would not crumble like other coins crumble against the dollar(world currency).

TETHER(USDT) WHITE PAPER
Tether (USDT) is a Cryptocurrency backed by a fiat currency( the US dollar).It is built on the Bitcoin which is a trusted blockchain.It is important to note that Tether serves dual purpose:as a crypto coin and as a fiat coin.
The most interesting aspect of Tether is that it allows the holder to use it as a Fiat to buy other currencies and also as a crypto to swap to other cryptos.
Furthermore, transactions on Tether is very secure, immutable and auditable as it runs on the blockchain technology.
Tether white paper

TETHER (USDT) PROJECT CONCEPT
Almost other cryptocurrencies suffer from volatile price swings, inability of users to read the market which can lead to loss of funds.
The Tether project has a solution to this problems.

All Tethers will initially be issued on the Bitcoin blockchain through the Omni Layer Protocol.Each Tether is backed with $1 by the Tether limited which makes the Tether impossible to be subjected to price swings and as such save users the headache of studying the crypto market.

TETHER(USDT) TECHNOLOGY STACK
The Tether Technology stack has three layers.They include:

•Bitcoin blockchain

•Omni layer protocol

•Tether limited

WHO STANDS TO BENEFIT FROM TETHER(USDT)

The Tether has a lot of applications and benefits to the blockchain community and other users.The three main beneficiaries of Tether are:

•Cryptocurrency Exchange Platforms
Cryptocurrency Exchange are platforms which allow users to store,send and receive cryptocurrencies.
Tether makes customers in cryptocurrency exchanges to transfer fiat, save crypto at a ratio of 1:1 with US dollar,use fiat to purchase other cryptos,swap Tether for other cryptos.
The pegging of Tether with $1 will make users of cryto exchange to save their assets in such exchanges.

•Individuals
Tether affords individuals the opportunity to transfer fiat and crypto currency from one person to another without going through the charges and delay associated with banks and other financial institutions.
Individuals can still run a cold wallet with Tether and then hold,send or receive at will.

•Merchants
It is clear that merchants need time to focus on their business and not time for replying on banks to process their payments or time to convert Bitcoin to Fiat.
The good news is that Tether allows merchants to price and buy at USD/fiat value.

WHY TETHER (USDT) REMAINS THE BEST AMONG THE REST

•It exist in the Bitcoin blockchain which is a trusted and reliable blockchain.

•The ratio Tether to USD(1Tether:$1)makes for transparency.

•Tether has the Omni Layer Protocol which makes it open source, decentralized,secure and transparent.

•Tether doubles as a crypto coin and as a Fiat coin.

•Just like Bitcoin,Tether can be incorporated with exchanges, individuals,wallets and merchants.

•Tether serves as a means of exchange since it is not subject to volatility in price

TETHER (USDT) ON SOCIAL MEDIA
Tether has got a lot of popularity on the social media.It has a Twitter handle and a Facebook page too.

This is a proper awareness format and as such more crypto and fiat users can rely on Tether for seamless transactions.

FACTORS AFFECTING MY DECISION TO INVEST IN TETHER

•It is a means of exchange

•Widespread Intergration

•It is backed by the USD

•It is highly secure

•It is transparent

•Protected by cryptography since it is on blockchain technology

References
Reference

Special thanks to Professor @besticofinder @steemcurator02 @steemcurator01 @trafalgar