In order to understand why most people, prefer earning USDT(tether) instead of bitcoin, first we need to know what USDT tether is and why it is called a stable coin.

USDT Tether started back in 2014 and belongs to a family of cryptocurrencies that are called stable coins and it aims to keep cryptocurrencies valuations stable and control market volatility, as opposed to the high market volatility of other cryptocurrencies such as bitcoin, Ethereum and other cryptocurrencies. This allows tether currencies to be used as a medium of exchange and a currency which can be used to store value instead of being used as a medium of speculative investments.

But we need to know whether it is as stable as we think or not. Due to the fact that tether currencies are pegged to other assets such as the Euro or the dollar and primarily are used as payment mechanisms. Name of each tether currency reflects on the idea that the peg makes them less volatile cryptocurrencies. Typically, when someone sets up a stable coin, there is a reserve for the assets which are held as collateral.

One of the main reasons that tether currencies are more stable and reliable is the fact that if you’re hacked, unlike bitcoin and other currencies you won’t be losing all of your money. One example of this is when $600 million was stolen from PolyNetwork and tether simply froze the $33 million of its tokens stolen which made it useless to the attackers.

How USDT works in Trading

As of 2021, more than 75% of Bitcoin trading is done in Tether. If want to compare USDT tether to some payment mechanisms today, we can compare it to its competitors like PayPal and Venmo. They all have very low transaction fee comparing to other payment methods. Specifically, in USDT which is also a tether currency, the transaction fees are usually less than $1 compared to out-of-network ATM fees which are about $3.

Imagine you are trading cryptocurrencies and in order to transfer your funds and turn it into dollars, it would take a few days as it has to pass the money laundering checks. However, with USDT this transaction is much quicker and if you find a good opportunity for a second investment, transferring your funds to dollars is going to be a lot quicker and easier and it allows you to make a quick decision about your next investment.

 Earn USDT (Tether) vs Earn Bitcoin

Earning USDT (Tether) is a better options if you don’t want to risk losing your money over bitcoin, here is why in below

  1. Quicker transaction times.
  2. Less market volatility
  3. It can be used to purchase goods easily
  4. It can be held as an asset for future
  5. it is backed by real assets

Due to the less market volatility and being backed by real assets, earning USDT allows you to keep your money without worrying about its price going down like other cryptos and losing your money.

Let’s say you have a few gift cards and you decide to choose a platform like Bitoff to turn your gift cards which you don’t use into cryptocurrency. If you are someone who likes the stress and doesn’t care that much about losing your money or at least a portion of it, you’ll choose to get bitcoins equal to the value of your gift cards on the platform. However, if you are someone who doesn’t want to check bitcoins price everyday and you just want to have some cryptocurrency which you can spend whenever you want, you’ll need to choose UDST.

Fortunately, due to the widespread knowledge and information on stable coins, most platforms such as Bitoff offer payments in USDT which allows the users to choose how they would want to get paid and decide how they would want to spend it in the future.

So, in the end, offering quick transactions with stability in future and being a lot less risky than cryptocurrencies such as Bitcoin and Ethereum, tether such as USDT has became very popular among those who want to keep their money risk free. We also need to consider that the main purpose of Tether is to make trading cryptocurrencies easier and cheaper. Although some people invest in Tether, it is mostly used for liquidity and to hedge against volatility when trading other cryptocurrencies like Bitcoin.

What would be your choice when it comes to cryptocurrencies and tether? Would you choose Bitcoin or other cryptos to keep your money or you would choose a stablecoin? You can have a look at the table below for a quick comparison of USDT with USD and Crypto.