Best USDT Trading Strategies to Maximise Tether Holdings

Do you know you can earn massive rewards from trading USDT? In a volatile market like the crypto market, cryptocurrencies like USDT serve as anchors for traders looking to maximise profitability.

A proper understanding of how to trade USDT profitably is key for you as a trader, and that is why we are considering top trading strategies that can be implemented to achieve this.

Some of the top strategies we will be looking at include

1. Dollar-cost averaging (DCA)
2. Event-driven trading
3. Arbitrage
4. Scalping
5. Avoiding trading on trends

Sit back and enjoy reading through this article, as we uncover these strategies one after the other. Before we proceed into the heart of the article, let’s get a clear cut understanding of USDT.

Understanding USDT

Before we explore the different trading strategies, it is essential to understand this stablecoin. USDT is a ticker symbol of the cryptocurrency Tether, which is tied to the U.S. dollar. The asset fluctuates with the dollar’s value and is backed by Tether’s dollar reserves. The stability of USDT means it is an excellent asset to HODL. 

Most traders do not see beyond these aforementioned features of USDT and, as such, do not know the many other market opportunities available with USDT. You definitely don’t want to be like that, so we will now consider different trading strategies you can employ to make a profit with USDT.

Exploring the Different Trading Strategies

You need to master and understand different trading strategies before you enter the market to maximise profit. This section explores the strategies to maximise your portfolio:

1. Dollar Cost Averaging (DCA)

Dollar Cost Averaging is a popular strategy among beginners and experts alike. This strategy involves splitting your investment into smaller amounts. These small amounts are then used to invest in USDT consistently over a period of time.

Assuming you have ₦1,000,000 to invest, opting for DCA means you split the amount; you might divide the amount into ₦100,000 in ten places to invest in USDT every Tuesday at 11:00 am. While we choose every Tuesday, the time you want depends on your risk appetite. This is an example, but you can choose to set your periodic investment weekly, bi-weekly, monthly. 

This method mitigates the blow of a volatile market, because you get to see how price is behaving before your next investment.

2. Event-Driven Trading 

If the dollar increases in value, USDT follows, and you get the dividends. Several events strengthen the U.S. economy and, inevitably, the dollar. You can use this knowledge to your advantage. You can trade crypto assets for USDT when you suspect a rise and vice versa. Moreover, using this tactic can combat inflation. 

3. Arbitrage 

This strategy of harnessing cryptocurrency arbitrage opportunities involves buying a crypto asset on one crypto exchange and selling it on another. The price difference between the amount you buy an asset on one exchange and the price you sell it on another exchange is your profit.

This difference is usually because of Tether liquidity, trading volume, and traders across platforms. To start, you need to open accounts at two different exchanges with wide price margins. This strategy can be applied to any stablecoin trading pair.

An example is when USDT is trading on MEXC for $0.97 and also trading on Binance for $1.02 at the same time. You can buy on MEXC and then transfer it to Binance to sell, resulting in a profit for you. 

4. Scalping 

This technique involves quickly entering and exiting the market, taking advantage of slight price movements. Hence, most trades are a few minutes’ tops. Scalping is especially profitable for active day traders who monitor minute price changes. The moment the minute trade becomes profitable, they exit the market. 

Scalping does not require waiting. The strategy’s success is embedded in the swift entry and exit of the market. This strategy is highly profitable when the market is volatile. However, it is crucial to note that it is risky. So, when moving in and out of a trade, you have to be cautious. 

5. Avoid Trading On Hype 

When trading USDT, it is essential to avoid trading on hype. This mistake is common among beginners. Most of the time, this happens when you get updates from social media. Investment decisions should be independent of social media hype. 

Cryptocurrency is a large industry, which means misinformation spreads fast. So, watch out before you leave or enter a market based on what someone tweeted or posted online. 

How Do You Convert USDT to Cash Using Breet? 

A seamless USDT to cash transaction is usually the next stop after a successful trade. So, here is how you can convert your USDT to Cash with Breet in seven easy steps: 

1. Download and Register an Account:

You can download the Breet app, whether you use an Android or iOS device, from the app store. If you prefer a web version, there’s a convenient web app. 

N.B.: You get a permanent wallet address automatically generated after sign-up. 

2. Verify Your Account: 

Once you register, you need to submit a government-issued document for verification. Don’t worry; this step only takes a couple of minutes. 

3. Time to sell your USDT:

Go to “Crypto-to-cash” and tap on USDT. Copy the auto-generated wallet address or scan the QR code that pops up. Paste it on the sending wallet. 

4. Sit back and relax:

Breet will detect the incoming transaction and begin to process it instantly. You’ll be given an estimated transaction completion time. 

5. USDT-to-Naira/Cedis complete:

In a couple of moments, you’ll receive your now-converted USDT in Naira/Cedis, which you can now send to your local bank account. 

Common USDT Trading Mistakes to Avoid

To stay profitable while trading USDT, there are certain pitfalls to avoid: 

• Ignoring Market Volatility

You must pay attention to extreme market volatility and avoid trading at those times to avoid incurring unnecessary losses

• Over-leveraging

Overleveraging on USDT futures trades can be dangerous. The possibility of losing your whole portfolio to unexpected market movements is possible when you overleverage.

• Arbitrage Traps

When considering arbitrage opportunities between two exchanges, always consider trading fees and withdrawal fees for each exchange to maintain profitability. It is possible to lose money doing arbitrage if you don’t pay attention to fees.

Frequently Asked Questions (FAQs) About Profitable USDT Trading Strategies

How Much is USDT worth in Naira? 

USDT is worth one dollar. Hence, the current exchange rate of one dollar to naira is the same as USDT to naira. Check our Breet rate calculator for the up-to-date exchange rate. 

Can I Stake USDT? 

Yes, you can. Several crypto wallets offer users an opportunity to stake Tether holdings. Plus, it is easy to get started. You can stake your USDT on Bit2Me Earn, Atomic Wallet, and Kraken. 

Where Can I Convert USDT to Cash? 

You can convert USDT to cash on Breet. The crypto-to-cash platform offers a swift and convenient conversion experience. Plus, you get competitive rates, ensuring the best value for each transaction. Visit Breet now to get started. 

What Are the Best Trading Strategies?

The best trading strategy depends solely on your risk appetite and preference. These strategies include Dollar Cost Averaging, Scaling, and Arbitrage. 

Dollar Cost Averaging is when you split your capital into small bits to invest following a schedule. Scalping is betting on little changes in a trend to make profits. Finally, Arbitrage is utilising the price difference between an asset on two different exchanges to make a profit. You can try any option and see how it turns out. 

Is Buying Tether (USDT) A Good Crypto Investment? 

Tether is a stable investment that offers many use cases. You also have opportunities for active and passive income. If you have a low-risk appetite, Tether is a pretty solid crypto investment to start with.