A tether is a form of cryptocurrency. It may not be as popular as bitcoin but has also increased in value over the years. The abbreviation for tether is USDT. The cryptocurrency was the 15th most popular cryptocurrency in 2018. Its market capitalization then was $2 billion. So, it is a formidable investment consideration for cryptocurrency investors.
Tether Day Trading platforms Canada
The cryptocurrency came into being in 2015 when it was called Realcoin. Tether is very important in exchange platforms that hold the money of their customers in USDT. A good example of such companies is Bittrex. This enables the exchanges to offer lower fees and transaction costs.
Why should you invest in tether day trading in Canada? Continue reading for helpful answers.
Benefits of trading tether
For one, Tether is very important to the cryptocurrency market. Bear in mind that its market capitalization is about $2 billion. In recent times, Tether emerged as the third most traded cryptocurrency. Tether is also more stable than USD. It is even safer than many other cryptocurrencies.
While there is a constant concern that other cryptocurrencies can fall in value, there is no such concern about Tether. This is because the cryptocurrency is pegged to the United States dollars.
The amount of security you can enjoy as a tether day trader in Canada is incomparable. This is made possible by the implementation of blockchain technology. Additionally, the cryptocurrency currently serves as a means of exchange on many websites. Many exchanges also integrate it, like the following:
- GoCoin
- Bitfinex
- Shapeshift
- Etc
Check below for factors affecting the value of tether. Every Tether day trader in Canada must bear these factors in mind.
Factors affecting tether market value are discussed below:
Economic news
The good news about cryptocurrency can increase Tether’s value and the reverse is the case. As a CFD trader, you should buy tether when the news is positive and sell it when the news is negative. For example, subpoenaing of tether by the IIROC can hurt the value of the cryptocurrency. On the flip side, the integration of tether to more exchange platforms can boost its market value.
Concerns about reserves
The value of tether can fall if there are allegations that the company fails to hold the reserve it promised. This is a good opportunity to sell Tether and make some cool profit. Such an outcome will give investors the impression that the company is not sincere or transparent.
Manipulation is important
One other value-determining factor for Tether is manipulation. News came up sometimes ago that Bifinex was getting coins from nowhere and using the coins to purchase bitcoin. This led to a rise in the value of tether and bitcoin. When such news of manipulation surfaces, investors want to lose trust in the cryptocurrency. This can give tether CFD traders a good opportunity to go short.
Exchange is important
Exchanges play a very important role in your success as a Tether day trader in Canada. So, you should choose the exchange you use very carefully. You can investigate them by reading online reviews from neutral sources. You should steer clear of any exchange with a history of manipulations or any other untoward concerts.
Consider the risk
Tether day trading in Canada is risky. Be that as it may, it gives the trader a good opportunity to make a lot of money. If you do not want to end up badly, always bear the risk in mind. Trade with care and do not risk more than what you can afford to lose. Take some time to study the market and develop a good strategy. You should also study continually to enable you to understand how to trade Tether better.