Despite Bitcoin being the most expensive cryptocurrency, it is also one of the most volatile. Its price can increase or decrease by 5-10% daily. Such a high level of fluctuation may be a reason to look for a more stable cryptocurrency.
A choice of cryptocurrency to buy is also important. A wrong pair may lead to significant losses, so whether you choose BNB to AVAX or BTC to ETH, you need to do thorough research.
Here we collected some information on USDT and the peculiarities of its purchase with BTC.
USDT — Best Choice Among Stablecoins
USDT, or Tether, is a stablecoin issued by a Hong Kong company Tether with a market cap of over $80 billion. The term “stablecoin” means that the price per coin is forced to be stable by an algorithm. It also means that the value of the cryptocurrency is tied to other assets. USDT is tied to the US dollar, for instance.
Why is USDT a good choice for an exchange? Here are some reasons:
- You can buy Tether for $1 any day. This makes this coin stable and operations with it fully predictable.
- Since Tether has a stable price, it is perfect for online payments and everyday transfers.
- As a stablecoin, Tether is perfect for “buy and sell” operations. You can sell BTC for Tether and then purchase some ETH. This operation will take more time than a direct transfer. However, it will guarantee you a more controllable and predictable rate with fewer losses.
Read: Effective Tips For Successful Crypto Trading [An Ultimate Guide]
How Long Does It Take to Swap BTC to USDT on Blockchain?
The cryptocurrency exchange process is fast, but not instant. Every transfer needs to be confirmed through the blockchain. Here is how a typical crypto-to-crypto swap works:
- You enter the amount of coins you wish to sell or buy.
- Next, you fill in your crypto wallet details.
- You get a deposit link from the exchange for the currency you are selling.
- Now the transfer needs to be confirmed. In the end, you will receive a detailed transcript of your transaction.
Typically it takes 5-30 minutes to convert BTC to USDT if you have a stable Internet connection.
When Should I Convert My BTC to USDT?
When you decide to swap BTC to USDT, timing matters a lot. To convert cryptocurrencies with the best rates, there are several things you need to do.
First, you need to explore both cryptocurrencies, including their volatility rates, price histories, maximum supplies, and market caps. These kinds of indicators will help you analyze the potential price change in the future.
Second, you need to find a suitable exchange to suit your needs. You may be looking for a platform with fixed rates, one with no KYC, or an exchange that supports a particular crypto trading platform software.
When you have comprehensive information on your hands, you can go ahead with the conversion.
Read: How To Create A Bitcoin Wallet?
Is It Profitable to Buy USDT?
The question of profitability is not relevant when it comes to buying USDT. Since it is a stablecoin, its price is always more or less constant — around $1. What may be profitable in the case of BTC to USDT pair, is swapping out your bitcoins when the price is high to be able to repurchase them later when the price is lower — all while staying within the blockchain and avoiding the use of fiat.
As for the prospects for BTC value, the Coin Price Forecast platform predicts its price to increase up to $126,127 per coin. It will be almost 2.7 times more than its price at the beginning of 2022. However, it is important to remember that BTC is also a highly volatile cryptocurrency. So, the higher the price, the higher the risks.
All in all, the BTC to USDT may not be the most profitable pair. However, it can serve specific purposes, like the need to complete day-to-day transactions, or an investment in a stablecoin for future transactions.