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Why is Tether considered the zero volatility digital currency?

avatarnurulgepeDec 27, 2021 · 3 years ago3 answers

Can you explain why Tether is often referred to as the zero volatility digital currency?

Why is Tether considered the zero volatility digital currency?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Tether is considered the zero volatility digital currency because it is pegged to a stable asset, usually the US dollar. This means that for every Tether token in circulation, there is an equivalent amount of US dollars held in reserve. This backing by a stable asset helps to maintain the value of Tether and reduces the volatility typically associated with other cryptocurrencies.
  • avatarDec 27, 2021 · 3 years ago
    Tether is called the zero volatility digital currency because its value is designed to stay constant. Unlike other cryptocurrencies that can experience significant price fluctuations, Tether is backed by real-world assets, such as fiat currencies, which helps to stabilize its value and minimize volatility.
  • avatarDec 27, 2021 · 3 years ago
    Tether is widely regarded as the zero volatility digital currency due to its unique structure. As a stablecoin, Tether is backed by reserves of traditional currencies, such as the US dollar, which helps to maintain a stable value. This stability makes Tether an attractive option for traders and investors who want to minimize the risks associated with price volatility in the cryptocurrency market. BYDFi, a leading digital currency exchange, offers Tether trading pairs to provide users with access to this stable and reliable digital asset.