Most market insights show that there is an inverse relationship between the percentage of the Tether (USDT) stablecoin on exchanges and Bitcoin’s price. Most times, people prefer to use USDT to trade or invest in Bitcoin because it provides a stable reference point in a volatile crypto world.
In this article, we would explore and compare the characteristics of the USDT and Bitcoin, and the roles they play in the cryptosystem.
What is USDT (Tether) And How Does It Work?
Tether was founded in July 2014 by Brock Pierce, Craig Sellars, and Reeve Collins, originally known as “Realcoin” (RTC) before it was rebranded. It is a cryptocurrency whose value has significant growth on a global blockchain platform. It was one of the earliest stablecoins created, built upon Mastercoin (Omni), which was a protocol layer for Bitcoin that introduced the stablecoin concept to the world in 2012.
Tether was created in a bid to solve two major issues with existing cryptocurrencies; high volatility and the ability to convert cryptocurrencies to fiat currencies. It was created fully backed 1:1 by deposits of U.S. dollars deposited in banks. On Ethereum, USDT tokens are represented as ERC-20 tokens, while on Bitcoin, Tether utilizes the Omni layer, to represent USDT tokens.
Advantages of Trading With USDT
- It is easier to navigate and relate to the price
- Most often more pairs are listed against USDT
- It is considered less risky.
Disadvantages of Trading With USDT
- A larger fraction of your portfolio is going to be in USD, which is “invested” and has no potential to gain value.
- Its value is always influenced by changes in BTC value.
Read Also: Should I Buy Litecoin or Ethereum
What is Bitcoin (BTC) and How Does It Work?
Bitcoin operates through an open-source code known as blockchain technology, which creates a shared public history of transactions organized into “blocks” that are “chained” together to prevent tampering. This system creates a permanent record of each transaction, and it provides a way for every Bitcoin user to operate with the same understanding of who owns what.
A Bitcoin wallet contains a public key and a private key, which work together to allow the owner to initiate and digitally sign transactions. This unlocks the central function of Bitcoin and secures ownership from one user to another.
Bitcoin users’ network verifies transactions through a process known as Mining, which is designed to confirm that new transactions are consistent with other transactions that have been completed in the past. This technology ensures that you can’t spend a Bitcoin you don’t have, or that you have previously spent.
Read Also: USDT vs. Ethereum
Advantages Of Trading With Bitcoin
- It accumulates more crypto
- It is always invested, with no depreciating USD holdings.
- As BTC value rises, so will your entire portfolio! (which wouldn’t happen if a large portion of the portfolio was held in USD.
Disadvantages Of Trading With Bitcoin
- It is considered a double risk and less stable since both currencies in a pair are volatile.
- Your portfolio USD value is going to fluctuate more significantly based on the BTC price.
What Determines the Price Of Bitcoin?
Bitcoin is a commodity being used to store value, so the following factors influence its price:
1. Supply And Market Demand
The price of Bitcoin goes up when more people want to buy it (high demand) than when there are bitcoins available, and it goes down when there are more bitcoins for sale than people want to buy (low demand).
2. Cost Of Production
The cost of producing or “mining” new bitcoins can impact the price because if it becomes expensive, people might sell at higher prices to cover their costs, which can influence the overall market price.
3. Cryptocurrency Competition
When many other cryptocurrencies are competing for attention and investment, it can sometimes make people less interested in Bitcoin, causing its price to decrease. On the other hand, if Bitcoin stands out or is seen as valuable, its price might go up as people choose it over other options.
4. Regulations On Sales And Use
When governments create rules about how Bitcoin can be bought, sold, or used, it can make people feel more confident or worried. If the rules are positive, Bitcoin’s price may go up; if the rules are strict or uncertain, its price may go down.
USDT VS Bitcoin: Which is Best For Trading?
Let us compare some major characteristics of USDT and Bitcoin to find out which is best for trading and the reasons for that. They include the following:
| Properties | USDT (Tether) | Bitcoin |
| Type of Currency | A Stablecoin that aims to mimic the US Dollar value | A cryptocurrency that acts like a digital gold |
| Value Stability | It is designed to have a stable value (around $1) | Its value can fluctuate greatly |
| Usage | It is often used as a safer option in uncertain times | Is used for investing, buying, and storing value |
| Market Behavior | It provides stability in a volatile market | It is known for its price volatility |
| Investment | It is not usually chosen for big profit potential | It is often chosen for potentially high returns |
| Purpose | It helps to navigate the crypto market’s ups and downs | It is used for various online transactions |
From the table above, we can deduce that due to the stable value of Tether, it is a better option for trading due to the following reasons:
- It is better for trading when you want stability.
- It is good for quick conversion between different digital currencies.
- It is useful if you want to trade with very low or no-risk returns.
Also, Bitcoin is better for trading due to the following reasons:
- If you are ready for market fluctuations and have a high-risk tolerance.
- If you like crypto trading adventure, with the chance for big wins (and losses).
- Most traders like its potential for higher profits.
Can USDT be Converted to Bitcoin?
Yes, USDT can be converted to Bitcoin on certain cryptocurrency exchanges, although the exchange rate determines how many Bitcoins you will get for each USDT you trade.
Tips to Convert USDT to Bitcoin
Converting USDT to Bitcoin is like trading one digital treasure for another. If you’re ready to explore the world of cryptocurrency conversion, here are some simple tips to help you navigate the process:
- Choose a Trusted Exchange: Find a reliable cryptocurrency exchange where you can trade your USDT for Bitcoin. Look for popular and reputable platforms that offer this conversion service.
- Create an Account: Sign up on the chosen exchange and create an account on the platform. Some exchanges may ask you to verify your identity by providing personal information.
- Deposit USDT: You need to transfer your USDT from your wallet to the exchange.
- Check the Exchange Rate: Make sure you look at the current exchange rate between USDT and Bitcoin.
- Place an Order: Decide how much Bitcoin you want and place an order.
- Monitor the Transaction: Keep an eye on your exchange account to see when the conversion is complete.
- Transfer Your Bitcoin: Once the conversion is done, transfer the Bitcoin from the exchange to your Bitcoin wallet.
P.S. Cryptocurrency prices can change quickly, so it’s a good idea to stay informed about market trends. Also, keep in mind that some exchanges might charge fees for the conversion.
Where Can I Buy and Sell USDT and Bitcoin In Nigeria?
There are many places to buy and sell cryptocurrencies (including USDT and BTC ). Some of these online platforms trade cryptocurrencies on a peer-to-peer platform while others allow you to exchange one digital currency to cash first before buying another one. Whichever one you choose, make sure you have studied the platform properly and understand how they operate including their level of integrity when dealing with customers.
The best among all these platforms is Nigeria Snappy Exchange. Our platform offers you the safest and most reliable user-friendly interface to navigate and first convert your digital coin to real cash before buying another one.
We have a track record of prioritizing our customers’ satisfaction before any other thing and so we have implemented a system that guarantees this.
Why Trade Your Cryptocurrencies On SnappyExchange?
There are lots of benefits you stand to gain when you trade cryptocurrencies with us. They include the following:
- Fast Payments: Our payout system is designed for speed making sure that your payment is not delayed.
- Best Exchange Rate: Our rates are the best you can ever think of. We understand the fact that you need to maximize your profits, therefore, we offer you good rates to facilitate and complement that.
- Flexible Trading Methods: We prioritize your convenience at all times that’s why our system allows you to make payments using various methods like bank transfers or you can fund your Snappy wallet to trade.
- Large Market Reach: You can trade varieties of Cryptocurrencies on SnappyExchange. Our platform offers you lots of options to explore.
- Real-Time Customer Service Support: In this digital age, where almost every process is automated, it means a lot for customers to speak directly to a customer care representative. It makes them feel more acknowledged, and this is one of the core customer support objectives of SnappyExchange.
- Value-Added Services: We don’t just offer you the opportunity to enjoy your trading experience, we also have a value-added system set up to reward our customers who qualify for various categories on our platform. Some of them include Snappy Tokens, our surprise monthly gift box, Referral bonuses, etc.
- Safe and Secured Transaction: At Snappy Exchange, we guarantee you safe and secured transactions all through your trading journey. This is why we keep having repeat customers who testify that our services are second to none. There are no third parties involved throughout the process.
- Transparency: Our services are transparent and we have all terms and conditions stated clearly to guide you to make informed decisions to avoid any mistakes in your details.
How to Trade Cryptocurrency on SnappyExchange
The following steps would guide you to do so easily:
- Visit our website or download our mobile app
- Open the app and sign up following the prompts given. After that, log into your account.
- Look for the ‘Trade E-Currency’ option and click on it.
- A drop-down menu will appear, showing various Cryptocurrencies available for trading. Select the one you want to trade or search for example; USDT or BTC
- Upon choosing any, you will be directed to the “Trade USDT(or BTC. Here, you’ll see the options to either Buy or Sell USDT or BTC.
- Click either the Buy or Sell option.
- After choosing Buy or Sell, you’ll be prompted to select a payment method. You can use funds from your SnappyExchange wallet or opt for a direct bank transfer. Specify the amount you wish to trade. Click the ‘Buy/Sell Now’ button to proceed with the trade.
- You’ll be taken to a page where you can review your transaction details. Make sure your details are filled correctly.
- If you’re buying Cryptocurrency, paste your wallet address. This is where your purchased coin will be sent.
- Once you’ve confirmed all the details and provided your wallet address, confirm your trade.
After the confirmation process, your Cryptocurrency wallet will be credited. This happens once the deduction from your SnappyExchange wallet or Bank account is successfully confirmed.
FAQs
Can I Buy USDT With BTC On Snappy Exchange?
No, you can only sell your USDT for Cash first before you buy BTC and vice versa. This would help you to maximize the value of your coin and eliminates the risks associated with the volatility of the coins.
Is there any Difference in USDT And BTC Exchange Rates on Snappy Exchange?
No, currently, there’s no difference. They are at the same rate. Any change in their rates would always be listed on your page during trading.
Conclusion
In summary, USDT is like a steady ship, while Bitcoin is a roller coaster. The best choice depends on how much excitement and risk you’re comfortable with in your trading journey.
Therefore, it all depends on you, what you want to accumulate and collect high profit in, and your risk tolerance.
Snappy Exchange platform offers you the opportunity to trade your USDT and Bitcoin on a safe and secure exchange platform. Every information you need to experience a hassle-free transaction is available on our website.
Sign up with us today to explore the treasures of converting your digital coins to real cash and expanding your sources of income.
