The cryptocurrency market is a dangerous zone because of the volatile nature of cryptocurrencies. One may lose a reasonable amount of one's capital in trading a coin that suddenly goes on a bear. At the same time, one cam easily make so much if the same coin suddenly make a bullish run. Because of the gains a bullish market can give, most persons prefer to trade the dollar against altcoins instead of fiat.
One very important thing to do before trading altcoins is analyses. This includes both fundamental and technical analysis which can help with successful trades. Without this, a cryptocurrency trader may gamble away all his capitals. These analyses less or not that necessary for trading the dollar against fiat currencies.
Reasons Why Trading Dollar Against Fiat Currencies is the Best.
USDT is a Stable Coin.
Unlike every other crypto, the usdt maintains a stable price over a period of time. The stable nature of USDT doesn't mean that its price is fixed. It means the price does not make significant movement. It doesn't have the volatile nature of other cryptos. For instance in a period of 24hours, the highest change that occurs in USDT against a fiat currency is just 10.
To make this clearer, let's consider the USDT/NGN pair. NGN stands for the Nigerian Naira. The price may be 460 at the start of the day and may move to 762, 765, 766, 768 and 770 in an extended period of time throughout the 24hours. The change in price to the negative doesn't lead to losses that are regrettable and its change to the positive doesn't come with huge profits at a goal but continuously trading with its back and forth movements in a period of 24hours is useful in realizing a good amount of profit and this is 95% risk-free.The Value of Fiat Currencies are taken from the USD, therefore, they maintain the stable price of USD
Every fiat currency has its price pegged to the USD from which the USDT took its stability. This means that the price cannot decrease or increase within a range except their is a form of economic crises in a country. Economic crises do not happen all of a sudden, so one can be cautious about trading USDT against fiat currency.One can sleep on one's trades while trading stable coins against fiat currencies. Here an individual after making a purchase can have rest of mind to sleep or do other things after a selling price must have been set without having to bother about what may happen to the trade. It creates less worry in traders since it's not volatile.
Little or no knowledge of technical analysis is needed to trade stable coins against fiat.
This is another reasons you should know. You do not have to go through the rigorous process of learning technical analysis to trade stable coins against fiat. This knowledge can be do without while making orders and bagging money.
However, trading stable coins against fiat currency needs a trader to use a lot of money as capital. This is one of the setbacks. For instance in the USDT/NGN pair one needs about $500 to $1000 at least to be able to make reasonable profits on trades. Another setback is the low profit that is made on trade when compared to altcoins.
The beauty of it is the risk free nature and the opportunity to make steady income for a long period without loses.
Let's see the examples below.
If the price of USDT/NGN is #760 and a trader buy it at that price with $2000, once it moves to 762, he has made #2000 in Nigerian Money. When it drops below by #2, he losses just #2000. In a situation it moves to above the entry prove by #10 and he sells, he has makes #10000 at once and if the reverse happens, he loses same amount.
Take a look at that chart above. There are many entry and exit zones that can fetch a reasonable profit for trades.
This can also be applied to other fiat currencies and same results will be obtained.
Let's trade safely!!!
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