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Day traders use Tether a lot, even during bull runs. Because the market never closes, many full-time traders put their crypto all into tether when they're done
by laken 8y ago
Day traders use Tether a lot, even during bull runs. Because the market never closes, many full-time traders put their crypto all into tether when they're done trading for the day.
- vkou 8y agoWhy not just put it into USD when they are done for the day?
- fastball 8y agoCrypto/Fiat transactions are much more expensive than Crpyto/Crypto transactions. Why impact your bottom line if you don't need to?
- laken 8y agoIn addition, it's more "liquid" too. It's easier to turn tether into pretty much any altcoin on most exchanges vs turning USD back into altcoins. There's still a belief in some circles too that a crypto/crypto transaction isn't a taxable event, which isn't true anymore. Regardless, some either believe this or know it's not true but find it easier to tax-evade this way.
- ska 8y agowhich isn't true anymore It's hard to argue it was ever true, or ever likely to have been treated as such.
- vkou 8y agoWhy is exchanging 1 BTC into 10,000 USD on an exchange more expensive then exchanging 1 BTC into 10,000 USDT - as long as you don't withdraw it? Is it because you don't trust the exchange to honor your USD withdrawal the next morning? What makes you trust that Bitfinex is more likely to honor USDT to USD exchanges the next morning? It's almost certain that USDT isn't actually backed 1:1 by USD. If it were, it would be trivially auditable. You're just moving yourself from one category of potential risk (Your exchange steals your USD), into a category of almost certain risk (The shoe drops and we discover that USDT was a scam all along.)
- cdiddy2 8y agoa lot of exchanges don't support USD conversion due to increased hassle of dealing with the dollar/us gov regulations. its easier to be a crypto only exchange than a crypto/fiat exchange