One of the biggest concerns in the cryptocurrency ecosystem has been price volatility which doesn’t leave out Bitcoin. Tether (USDT), a Stablecoin was however launched five years after Bitcoin was debuted to bring stability to the crypto market.
Terra USD, another top stablecoin, and LUNA (both issued by the Terra company) had a big loss in the past week. Bitcoin and other altcoins were not left out in the crypto crash. While this happened, Bitcoin retains its number one spot while USDT stays third in the crypto market.
In this post, we’ll discuss which to buy between Bitcoin and USDT. For the sake of crypto beginners, let’s learn more about both cryptocurrencies first.
What to Know About Bitcoin
Bitccoin is the first cryptocurrency and the most popular among thousands of cryptocurrencies today. Bitcoin with the trading symbol BTC is the brainchild of the mysterious Satoshi Nakamoto. It was the first peer-to-peer decentralized currency in the world.
Today, BTC boasts a market capitalization of $560 billion. It commands a price of $29,459.38 USD with a 24-hour trading volume of $34,566,091,761 USD as of May 16th, 2022.
The idea behind Bitcoin is to ease financial transactions by removing middlemen that otherwise control and regulate fiat currencies. It has since become the most popular digital currency and a speculative asset.
BTC has been a choice for crypto traders/investors because of its high potential. While BTC has experienced spiraling price fluctuations, its value continues rising. Another reason its top on investors’ list is that it has more trading pairs in any exchange compared to newer coins.
BTC is however not without shortcomings, one of which is price volatility (currently in its low period). You might make good returns when prices rise, but a downward trend will offset all your gains in one fell swoop.
Out of the numerous digital assets created after Bitcoin (collectively known as Altcoins), Stablecoins is the only group with a stable price as they’re pegged with fiat currencies.
What to Know About Tether (USDT)?
Tether USDT is a stablecoin with backed 1:1 by the US dollar. It is issued through Bitcoin’s Omni Layer Protocol by Tether Limited, the company behind its development.
Every Tether coin is physically backed by one dollar which protects people from the volatility of cryptocurrencies. Tether USDT makes transactions faster, simpler, and cheaper.
USDT made its debut in 2014 and has since became the number one stablecoins. It is currently ranked 3rd among thousands of cryptocurrencies by CoinMarketCap.
As at the time of writing, USDT has a live market capitalization of $75,664,145,329 USD. It has a circulating supply of 75,752,120,651 USDT coins.
There are many reasons USDT is in the list of crypto traders/investors. Today, Tether USDT is the most popular pair for Bitcoin and also across the board. Using a stable crypto coin backed by fiat makes it easier to pinpoint movement in the asset’s value.
Another advantage is that during a downtrend, Tether USDT will preserve its value. When cryptocurrency markets crash as we have it in recent week, you’ll not lose because your coin’s value is backed by fiat currency.
Like Bitcoin, USDT is not without an issue-it’s major problem is the controversy with the Tether company. Auditing of Tether USDT and the reserves held by the company has raised controversy. This has been much of a concern when looking at it’s value.
How To Buy Bitcoin with Naira
Bitcoin is available for purchase on crypto exchanges worldwide as well as peer-to-peer trading platforms. In Nigeria, one of the best places to buy/sell Bitcoin is Prestmit, a digital exchange platform.
Bitcoin trading is made easy by Prestmit via its mobile app. BTC and other top digital assets like USDT, DOGE & LTC are available at market rates.
If you are buying Bitcoin in Nigeria with the Naira or in Ghana with the cedis, it is quite easy, fast and secured on this platform. With the steps below, you can buy Bitcoin on this platform.
1. Create a Prestmit account on the website or Prestmit mobile app on your android play store
2. Log in on your Prestmit account
3. Generate a Bitcoin address
4. Click on ‘Buy Bitcoin’ from the list of currencies provided
5. Select a preferred payment method
6. Enter the amount of Bitcoin you want to buy
7. Your order will be received upon the successful completion of the details
8. Upon the confirmation of payment, the equivalent Bitcoin will be transferred to your Prestmit wallet.
How to Sell USDT for Naira
You might want to sell your USDT and to make this happen, Prestmit is one of the best places to do so. It is very fast and easy to sell USDT on P2P trading platforms like Prestmit. Once you create an account you will be given a free USDT wallet.
When you send the amount of USDT you want to change to your wallet, wait for 3 confirmations. After the confirmation, you can now withdraw your money in Naira.
Which to Buy Between Bitcoin & USDT?
If you are in cryptocurrency trading, stability in price and valuation are among the biggest considerations in your trades. BTC is still the most valuable cryptocurrency today despite the low price while stablecoin like USDT is the top choice for stability.
There are several reasons to opt for BTC as base currency while diversifying. In a time of downtrend like this, USDT is the best to hold for its benefits.
In fact, stablecoins got a mention by the UK government as it made the point of focus for regulation rather than crypto in general. Bitcoin on its own has made giant steps in recent times as it has been made a legal tender by a nation (El Salvador in 2021).
If you are making a decision on which to buy between the top cryptocurrencies, then must study their pros & cons. You also have to consider available pairs to trade with, volatility and liquidity.
Although most people want to buy bitcoin in the cryptocurrency market, it’s also advisable to look at the benefits of USDT and assess its growing popularity in trading.
Also Read– All You Need To Know About Bitcoin Liquidity