Blockchain has led to some remarkable advances in the cryptocurrency sector. In the beginning, bitcoin was the only cryptocurrency to benefit from blockchain technology.
However, a number of other great cryptocurrencies have emerged with blockchain technology in recent years. One of the lesser known cryptocurrencies worth being aware of is Tether.
Tether can offer investors that know a lot about blockchain a number of opportunities to earn money from it. They need to do their due diligence and understand the protocols with this new cryptocurrency, especially if they intend to earn interest from investing in it.
Getting the Benefits of Tether as a Blockchain Savvy Investor
Difficult economic conditions and other external factors can make it hard for investors to generate good returns from traditional investments. Bank deposits no longer give good interest rates while other options such as stocks and real estate are becoming too risky.
Of course, there are some steps that investors can take to get the most out of their investments in these uncertain times. They have started using data analytics to make more competent decisions. However, this can only go so far, since big data cannot turn mediocre investing opportunities into spectacular ones.
As a result, some investors who are looking to get high yields from their investments are turning to crypto savings accounts. Crypto savings allow investors to earn interest on their crypto savings. They pose a relatively low risk while generating good returns. Tether (USDT) is one of the most preferred options for investors as it can yield an interest rate of up to 12.7% per year. Tether is a cryptocurrency stable coin that is not affected by price volatility, a common phenomenon that plagues several digital currencies.
Tether is one of the coins whose value is backed by an equal amount of fiat currency that is used to purchase them. This means you receive tether coins equivalent to the fiat currency converted, i.e., 1 tether coin for $1. In this article, we look at some tips to earn interest on tether coins.
How does Tether work?
Fiat currencies are affected by external market conditions which often affect their value. Tether was created to bridge this gap and offer more stability, transparency, and even reduce transaction costs. Its value is pegged to the US dollar in a 1-to-1 ratio. What makes Tether stand out is that you earn high yields from your Tether savings compared to fiat currencies, even though the value is the same.
Crypto wallets like YouHodler can help you earn these high yields on your crypto savings. You can earn interest with YouHodler when you deposit USDT to your YouHodler account. Withdrawal of your earnings can be done weekly, or you can opt for a long-term investment where you can earn up to 12.7% interest per year (which is also compounded).
Why blockchain makes Tether a tremendous investment
Blockchain has undoubtedly had a phenomenal impact on the fate of most cryptocurrencies. Tether is no exception.
Blockchain technology has made cryptocurrencies like Tether very secure. It is nearly impossible to break the blockchain, which makes it incredibly hard for hackers to intercept the transactions. Hackers can still take control of a machine and send cryptocurrencies by accessing the wallet, but they can’t break the blockchain itself.
The security afforded by blockchain offers a huge piece of mind to most investors. It also plays an important role in enhancing the stability of the asset by limiting price volatility.
How to earn interest with tether
Tether is a decentralized stable coin that tracks fiat currencies. Although there are several other stablecoins in the market, Tether is one of the widely preferred choices. Because its value is tethered to the US dollar, its price movement tracks that of the US dollar instead of volatile digital currencies such as Bitcoin.
Tether does not have its blockchain, and initially, it was issued through the Omni layer of the Bitcoin blockchain. However, today it can be found on Ethereum, Tron, and EOSIO blockchains with the latter alongside Bitcoin also being available at YouHodler, making it easier for investors to earn interest on USDT.
How to choose a tether wallet
To earn interest on Tether, you need to choose a wallet that provides you with ways to earn interest from crypto and your savings accounts. Here are a few things you should check first.
- Interest rate – there are several wallets out there that you can use to store your stable coins and earn interest on them. You should, however, check the interest rate you will earn when you deposit USDT to your account. YouHodler, for instance, can help you achieve an APR of up to 12.7%. You can also check how often you can withdraw your interest earnings.
- Asset security – this is usually a significant concern to investors when looking for crypto wallets or exchanges. Crypto transactions are done online, and a single security lapse can lead to you losing all your investment. Choose a reputable site that offers maximum protection to your funds.