3 Exclusive trading tips for Tether (USDT)
How to get more profit in cryptocurrency trading?
Experienced traders choose to improve their investment risk management to optimize their results.
The winner of 1 ETH in the 1st NovaDAX Trading Competition, which reached a monthly profit of 37.05%, shared his experience with us:
“During the competition the trading tips provided by the NovaDAX blog gave me a great help, especially the crypto-crypto trading strategy using the stable coin USDT for exchanges with other pairs.”
He highlighted the use of the stable coin USDT, which was created by the company Tether and is linked to the US Dollar, 1 USDT ≈ 1 USD.
USDT can be a great option to analyze the market situation, minimize investment risk and even perform arbitrage to obtain profits.
Tip 1: Use USDT to analyze the market scenario
The value of USDT can reflect the movement of the cryptocurrency market, a barometer of capital entering and leaving the market. When speculation is down, investors prefer to exchanging other assets to USDT to minimize risk, which will consequently lead to its appreciation. On the contrary, when the speculation is upward, more USDT will be converted to cryptos with greater appreciation space, so its price will decrease.
On the other hand, as USDT is pegged to the US dollar, you can use charts of pairs between USDT and other currencies to analyze market trends.
We offer several tools in crypto-crypto trading charts, with which it is possible to conduct technical analyzes to assist your investment decision.
Tip 2: Minimize investment risk with USDT
USDT allows you to minimize your investment risk more efficiently due to its high liquidity with other currencies.
When the market is in an adjustment period, it is possible to convert your cryptos to USDT in order not to suffer the devaluation of your asset. When the market starts to recover, just buy cryptos with USDT in your account.
Tip 3: Use USDT for low risk arbitrage
We had introduced on our blog the most basic cryptocurrency arbitrage technique: buy at a low price on NovaDAX and sell on another exchange where the price is higher to make a profit. In this process, the investment risk lies in high volatility of cryptos — unexpected variation at any time.
However, you can decrease the risk by using the arbitrage with USDT, since its value is relatively stable in the short term. It is worth mentioning that the price of USDT can vary between one exchange and another due to several factors, such as demand and supply and capital movements.
As long as there is a price difference, you have a chance to earn.
Besides, don’t forget that USDT can be used to select the intermediate pair in triangular arbitrage.
Don’t miss out and take advantage of USDT benefits now to increase your chance of profit!
