Investors are drawn to coin investments due to the market structure that reflects global trends faster than stocks. In particular, the indicator that is currently being closely monitored is the Tether (USDT) exchange rate.
Tether is a stablecoin designed to maintain a 1:1 value with the US dollar. Theoretically, 1 Tether should have a value of 1 dollar, but in the actual market, due to price differences between exchanges, fees, and currency exchange premiums, it often fluctuates around 1.01 dollars or 0.99 dollars. Although this seems like a slight difference on the surface, it can significantly impact actual returns when managing large amounts of capital.
Since it is difficult to directly purchase Tether on domestic exchanges, the general method is to buy Bitcoin or Ripple first, transfer it to an overseas exchange, and then convert it to Tether. If you check the Tether-USD exchange rate in advance during this process, you can set up money transfer and trading strategies at more advantageous timings.
For example, the difference in returns when the exchange rate is 1,350 won versus 1,390 won is not small, and having prior knowledge of the Tether price serves as a very advantageous decision-making criterion.
Most coin futures exchanges use Tether as margin. This means that Tether exchange rate fluctuations affect not only the entry point of trades but also the overall investment performance. Since futures trading aims to predict future prices for profit, the value of Tether becomes an important consideration when choosing between a long (upward) position and a short (downward) position.
In particular, the Funding Rate is a key variable in this structure. The funding rate plays a role in adjusting the balance between long and short positions, and this fee is paid or received periodically in Tether.
For example, if there is excessive concentration in long positions, the long holders pay funding fees to short holders. Conversely, if there is an excess of short positions, payments are made in the opposite direction. Therefore, understanding and analyzing the flow of funding fees is crucial for maintaining returns.
The exchange I use most often is Binance. The UI is intuitive, and the Tether-based market structure is well-established, allowing for real-time checking of funding rates and strategic entry.
In conclusion, trading strategies based on the Tether USD standard are not just simple auxiliary indicators, but the core reference point for coin investments. From determining the timing of deposits and withdrawals to analyzing funding fees, and maintaining positions in futures trading, the Tether exchange rate affects every stage.
Especially when market volatility is high, trading decisions based on Tether carry higher reliability. I too have experienced improved returns and risk management capabilities after clearly understanding the concept of Tether.
If you start developing a sense of the Tether exchange rate from now on, your coin investment strategy will definitely become more refined.
For those looking to start investing in coins in earnest, registering on Binance is a fundamental first step and a very important choice. Especially as the world's largest exchange, it is an essential platform for utilizing a variety of coin listings, futures markets, and DeFi products.
Above all, the fact that you can receive a commission discount benefit when signing up means that choosing the registration link can have a direct impact on your returns. If you register through the link below, you can receive an immediate 20% discount on trading fees, so be sure to check it before registering.
👉 Binance 20% commission discount registration link
Furthermore, not only new users but also existing Binance users can receive a 20% discount on fees if they meet the following five conditions. It's very useful to know that you can receive a discount opportunity again even if you use an existing account:
You must already have an account on Binance.
The account must not have accepted any other invitations in the past.
You must not have traded or used products on the Binance platform in the past 180 days.
If a user who meets the above conditions opens the invitation link and logs in, a confirmation window will appear.
After that, clicking the [Bind Now] button will complete the binding, and the discount benefit will be applied.