It's no secret that most traders seek to lock in their profits, but due to the high volatility of cryptocurrencies, this has been quite problematic to do. This is because users need to exchange their cryptocurrency assets for fiat currency to pay for various goods and services and to trade on the market. Doing this without involving fiat currency and constant withdrawals is quite troublesome. Stable-coins, crypto-assets that help lock profits at a ratio of about 1:1 to major fiat currencies, have come to save the market. One of the most in-demand and popular cryptocurrencies on the market is (Tether). USDT Small backstory USDT cannot be mined, and there is no limit to the tokens that can be issued. According to the founders, this is made possible because the cryptocurrency is secured by real assets. It is this fact that raises the most doubts in the cryptocurrency community. This skepticism is also reinforced by the absence of a third-party audit of the company. At the same time, on its official website Tether that USDT is not money and they have no real price, and the company does not have to guarantee the value and security of each token. states Also, the company has no obligation to return USDT to users and reserves the right to refuse service and compensate users who violate the user agreement. If Tether goes bankrupt, alarmists caution, no one will return funds to users. Nevertheless, the founders have repeatedly assured that they do not pass third-party audits only to maintain commercial secrecy, and the official project website regularly publishes reports on the security of the coin with real assets. Another complaint against Tether is considered to be its centralization. A number of experts believe that this can lead to uncontrolled monetary emission. But if we consider USDT a hybrid of both cryptocurrency and fiat, its centralization is more likely to demonstrate its similarity to conventional fiat institutions. Is Tether as scary as they make it out to be? It is also worth noting that despite the skeptical statements towards Tether, the share of Tether on the market, from 2017 to 2020, exceeded 70%! This indicates both a great market need for this kind of asset, as well as user confidence in this stablecoin. Let's imagine, though, that USDT is actually not backed by anything. Is it really that scary and threatening for the cryptocurrency to collapse drastically and lose a lot of money? We should start with the fact that fiat money should not appear out of thin air either; every ruble, dollar, euro and other state currency should be secured by foreign exchange reserves. However, both because of the political situation and because of a number of other factors, no audit has been made for quite some time, and no global collapse has yet occurred because of this.  It is doubtful that every fiat unit in the world is really backed by gold. People have just come to a consensus and the market accepts it, so the question of whether this or that currency is backed by gold hasn't been raised for a long time. Public consensus is what many currencies are based on. The public demand for purchasing and storing Bitcoin can also explain its current solid price, along with some other currencies. We should also consider the growing interest in USDT from institutional investors, who never invest in high-risk assets. Therefore, the likelihood of a stablecoin collapse is currently minimal. How can the risks be minimized? While trading, nevertheless, one should take into account the market conditions and not "put all their eggs in one basket". The key to success for any trader is asset diversification and systematic control over them. USDT is an indispensable tool for locking in profits and withdrawing funds, but you should at least keep some of your assets in good old Bitcoin. It is also worth keeping an eye on the fiat dollar rate when deciding to commit profits to this altcoin. After all, it would be a shame to lose profit because of yet another witty statement made by some Twitter politician. But in any case, USDT is one of the best stablecoins on the market and has no equivalents, and we hear various theories on the possible collapse of various altcoins every day. In order to stay up-to-date on the latest cryptocurrency rate trends and forecasts, sign up and get reliable information from every week! KickEX.com ( : ) Disclaimer The author is the CEO at KickEX

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