Should you convert USDT to ETH and why? Read on to learn more about both tokens and decide which one provides better opportunities for investors
USDT vs ETH: Investment Opportunities
While the dominance of Bitcoin seems rather unchallenged, lesser cryptocurrencies remain in a tough fight for leadership. Let us look closer at USDT and ETH. In a market where too many coins simply attempt to clone each other’s features, these tokens provide a great example of drastically different approaches.
What is ETH?
ETH is a highly innovative blockchain system. It has a proof-of-stake mechanism and prominent potential for further digital integration. Furthermore, after its 2.0 Upgrade, ETH has become environmentally friendly — the importance of such a feature during the upcoming decades can hardly be overestimated.
ETH: Features You Should Know About
- High transparency and decentralization;
- Large community of developers;
- Highly innovative;
- Advanced functionality when compared with older cryptocurrency systems;
- Fast transactions;
- Supports smart contracts and decentralized applications;
- Limitless coin supply.
What is USDT?
Tether (USDT) is a splendid example of a newer generation of stablecoins. It is designed to provide better investment opportunities for long-term investors. Unlike traditional cryptocurrencies, it uses the so-called “I-owe-you” model. USDT is backed up by the U.S. dollar: a unique feature that greatly increases its stability over time. However, this approach comes with several considerable drawbacks. For instance, this mechanism makes it far less transparent than ETH.
USDT: Features You Should Know About
- Significantly decreased volatility;
- Multiple wallet options;
- Decent level of cross-platform integration;
- Greatly reduced transparency;
- Often used for fiat money transfers with lower fees.
Where to convert USDT to ETH
You can swap USDT to ETH or otherwise on major cryptocurrency conversion platforms, such as Exolix. USDT represents an appealing niche for long-term investors. On the other hand, ETH seems to be much better when it comes to short-term deals and actual trading. Before converting coins, consider the main goals of your investment strategy. If you wish to buy cryptocurrency to construct a financial core of your digital assets then stablecoins, such as USDT, seem like a promising choice. If you are interested in functionality and flexibility, you may wish to trade coins to receive ETH.