Why Tether Coin The World’s Third Biggest Cryptocurrency – And How You Can Profit
The “Trouble” series continues as I continue to discuss the value of cryptosystems and how they can affect global trade and supply chains.
This post briefly discusses why some traders are worried about the future price of ether (the largest currency pair in the world). An explanation of market psychology might be in order. Why tether the world’s third-largest largest digital currency to the performance of a tiny little virtual economy? Cryptocurrency
Some traders may be worried that ether’s price may rise to a point where it becomes unusable. Tether Coin
Well, the truth is, this doesn’t happen. At least not anytime soon. Tether’s price has been extremely stable over the past year. This stability is due to strong fundamentals, low trading frequency, and extremely low leverage. Cryptocurrency
Many traders focus on fundamental factors when trading currencies. These include interest rates, unemployment rates, consumer spending, etc. I believe it’s important to consider non-fundamental factors as well. One such factor that shouldn’t be overlooked is how open the economy is. It’s been noted before that nations with free-market economies enjoy more economic freedom than those with central banking.
With a free-market economy, there are two forces that have the power to drive up the price of a country’s currency. The first force is the demand and the second force is supply. Let’s say that the US dollar is worth $100. If everyone were to instantly convert their dollars to British pounds (GBP), then the price of GBP would surge. Tether Coin
In the past, a smart trader could ride the out-of-power state of the Chinese economy for a short time. Then the Chinese government cut off the Yuan’s access to the Chinese financial system. This created an artificial wall between the USA and China. If the US wanted to continue to trade with China, they had to either get rid of the Yuan or severely limit their purchases. Tether Coin Cryptocurrency
That’s the reason that tethering the world’s third-biggest crypto coin, Lite coin, to the Chinese virtual money system, known as the China Exchange, makes sense. Tether Coin
Another good reason to do this is that the Yuan is likely to start weakening again. At this point in time, the Chinese government has more to lose than the American government does. They can sit tight for a while and let the market stabilizes itself. Or they can make a huge move and make trade flows similar to the ones that they did during the last financial crisis. Tether Coin
If China does nothing, then the USD will probably follow suit and start increasing its price. There is a real opportunity for you in this situation. If you have a margin account that has sizeable volume, then you may want to look into a “leveraged asset” called a tether. Cryptocurrency
What are tethers anyway? Tethers are bets on which way the market will move in a particular day. You place your money into this type of market, when it reaches a high and short the gap (i.e. go long). If the market moves in your favor, i.e. the price goes up, you make money.
Why is this good for you as a trader? Well, it’s really not that much different from trading in any other market. If you understand pricing dynamics, you can profit from this market. The third-biggest biggest crypto coin is usually seen as a bubble. Cryptocurrency. Tether Coin
This is only going to be true if the market is over inflated and everybody is desperate to get in before the bubble bursts. This tends to happen when there is a large move in one currency against another. It also occurs when the market is very volatile. This can occur because of some news event or governmental report that cause investor confidence. This can cause large moves in a very short period of time.
So how can you use this information to exploit this market? Well you can buy when the prices are low and sell when the prices are high. This is what we call trend trading. Cryptocurrency, Tether Coin
Now do you understand why tether the world s third-biggest crypto coin? I think now you will see why we have been seeing some very big moves in this market. There are always people trying to manipulate the supply and demand in the stock markets so they can make some money. However, the entire cryptocurrency trading market is based on supply and demand so this is a useless point.