5 Things to Consider When Investing in India's Three-Party Payment Matching-USDT

　　**Five things you need to know about investing in USDT**

　　**I. Direct pegging of USDT to the US dollar**

　　USDT is a stablecoin pegged to the U.S. dollar and is designed to maintain the same value as the U.S. dollar, i.e. 1 USDT equals 1 U.S. dollar. Due to its price stability, USDT is not suitable as a cryptocurrency investment for those seeking price increases.

　　**II. Multiple Uses of USDT**

　　While USDT is not suitable as a long-term investment, it has a variety of uses, including buying other cryptocurrencies, making transfers, and earning interest. Users can quickly convert funds to USDT to purchase other assets on cryptocurrency exchanges or transfer funds between accounts, while some exchanges also offer the opportunity to earn interest by lending USDT.

　　**III. Background of Tether Limited, the USDT issuing company**

　　Tether Limited, the controversial issuer of USDT, has had its credit issues in the spotlight. Despite Tether Limited's claim that each USDT is physically backed by $1, reserve information released in March 2021 shows that only 2.9% of USDT is backed by cash. Additionally, Tether Limited has been hit with a lawsuit for allegedly covering up its affiliation with cryptocurrency exchange Bitfinex.

　　**IV. Challenges and allegations regarding USDT**

　　Critics of USDT have argued that the stablecoin is being used to drive up the price of Bitcoin.Tether Limited, which has complete control over the supply of USDT, may be able to drive up the price of Bitcoin by minting new coins to buy Bitcoin. This practice has raised questions in the market about the authenticity of USDT.

　　**V. Price volatility of USDT**

　　Although the price of USDT is usually stable at $1, market supply and demand may cause its price to fluctuate. In times of cryptocurrency market volatility, investors may turn to USDT, which increases demand and pushes up the price. However, Tether Limited does not guarantee that every USDT can be exchanged at $1.

　　USDT, as a stablecoin, plays an important role in the cryptocurrency market, but investors should fully understand its characteristics and potential risks before investing.