What are the potential risks of investing in Tether with a high kurs?

3 answers

• Nov 29, 2021 · 3 years ago
  Investing in Tether with a high kurs can be risky due to the potential for price volatility. Tether is a stablecoin that is pegged to the value of the US dollar, but if the kurs of Tether increases significantly, it may indicate a loss of confidence in the stability of the coin. This could lead to a decrease in demand and a subsequent drop in the kurs. Investors should be aware of this risk and carefully monitor the market conditions before making any investment decisions.
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• Nov 29, 2021 · 3 years ago
  There is a potential risk of market manipulation when investing in Tether with a high kurs. As Tether is one of the most widely used stablecoins in the cryptocurrency market, any significant changes in its kurs can have a ripple effect on the overall market. This opens up the possibility for market participants to manipulate the kurs of Tether for their own gain. Investors should be cautious and conduct thorough research before investing in Tether with a high kurs to mitigate this risk.
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• Nov 29, 2021 · 3 years ago
  Investing in Tether with a high kurs can provide opportunities for arbitrage trading. When the kurs of Tether is significantly higher than the pegged value of the US dollar, traders can buy Tether at a lower price and sell it at a higher price, making a profit from the price difference. However, it's important to note that arbitrage trading carries its own risks, such as transaction fees, market liquidity, and timing. Investors should carefully evaluate these factors before engaging in arbitrage trading with Tether.
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