Bitcoin Forum

How safe is it to hold your money in tether? It's based in Hong Kong and some of the terms and conditions are cringey. If something were to happen to it do you think polo and bittrex would honor your money some how?

I am also wondering about Tether. I read a few articels about it and did not get a solid anwser about his saftey.

If any kind of issue happen with the mechanics of this token, you'll take the damages.
I'd to say it's not safe to hold your money on Tether.

At end of the day Tether is just a crypto. Do I need to say something more? :)
I dont trust Tether or any other asset coin.

tether is mostly tied to bitfinex since the same company is behind both of them. polo and bittrex and others added tether since the trading volume increased a while back.

if that company (i think it was a bank) goes down or starts having any trouble the price of USDT will tank hard. we saw last year when bitfinex was hacked USDT fell down below $1 easily. so it is easy to lose money.
as for safety, they are clearly not guaranteeing anything! it is like most altcoins 1 USDT = 1 USDT. there is nothing saying 1 USDT = 1 USD and they certainly don't guarantee exchanging it for fiat!

in my opinion it is a good thing to use for short term like for holding your funds in fiat but not to rely on for longer. it is risky.

It is surely not very safe. If their company goes bankrupt basically you would lose your money quickly. Don't trust it as fiat money or bitcoin. It might be tied to USD but it doesn't mean it will stay always. I saw its prive lower than 1 usd around 2 or 3 months ago.

As far as I know, USDT is not secured by nothing other than the Bank accounts of developers, who by the way has not published data about what resources they have.

I don't think it is safe, in my opinion even it is not safe, there is just a company (startup) behind usdt, it should not be seen as digital usd. It may be better to hold bitcoin instead of usdt in the long term.

It is a risk like everything. But when the whole market is falling, do you risk using tether? I would say yes, but it's personal opinion. And it also depends on the amounts you're putting in. I wouldn't put all of my cryptocoin holdings into tether, but I would put some in.

Like there it still have some risk holding your money on tether. If I were you I would hold my money on coins that have been on a low price for a period of time like waves. If something were to happen to it, polo and bittrex won't return your money be cause it is not their fault, it's tether's but if it is still sellable when that something happens sell your tether.

The process of Tether maintaining it's 1$ value from what I know is following:

User buys 1$ worth of tether -> Tether Network (Company, Devs) "prints" 1USDT
User sells his 1USDT for Fiat -> Tether Network destroys the printed USDT.

So, as long as the developers are doing what they say they do, Tether is safe.
But if something goes wrong, I don't know what can happen, expect the worst.

It is almost same like hold money in Poloniex or Bittrex.
1-2 month is ok, but not for long holding.
Conversely - bitcoin, etherium is good for long holding.

If you look at the charts of Tether then you will realize that it has not always mainted the level of 1 tether equal to 1 USD. So that sums it up preety nicely. Stay away from it. I would not hedge all my money into this.

All Cryptocurrencys are at risk including tether
Nothing is guaranteed in Crypto world.

There is a risk with Tether like any other crypto. It is not backed by anything substantial and is only implicitly tied to USD, if something major happens then it would definitely drop below 1:1. Short term it can be worthwhile to trade in tether but long term I would advise against holding large amounts of tether.

No way. It's not safe at all. It's tied to Bitfinex -- they are owned by the same company. So Tether is subject to the same third party risk as Bitfinex. Indeed the terms are scary. Technically, your USDT is not redeemable for anything. In practice, you can't redeem it for real money either because Bitfinex/Tether does not have any fiat banking capabilities right now. I would not be comfortable holding USDT for long at all.

And no, Poloniex/Bittrex/Kraken/etc definitely won't honor your USD value if Tether goes down in flames. That's why they either don't have USD deposits/withdrawals, or they keep USDT as its own market (like Kraken).

Tether recently released audits that show that they indeed have several
working banking relationships.

The more relevant question is if the banks they use are aware of the
nature of the business model of Tether.

I've been using Tether for some time but only for short term trading. I would definitely advise against it for a long term investment.

Today is the right day to answer your question with a perfect example how safe is to keep your hard earned money on any exchange or similar platform like Tether.

Tether says nearly $31 million worth of its digital tokens have been stolen after hack.

https://www.theverge.com/2017/11/21/16684296/tether-cryptocurrency-stolen-30-million-hack

It's not safe and never was and never will be.

It is not safe at all, at the end of the day it is just a cryptocurrency and like any crypto its value changes, they try to keep it close to 1 dollar but that has the problem that its value compared against bitcoin is decreasing in the long term, so you need more and more USDT to buy the same bitcoin, so it does not make sense to put your money there, it is better to put your money in bitcoin and hold bitcoin instead of USDT.

1 USDT goes for $0.94 USD at Kraken recently meaning, that savvy investors believe there is a risk of USDT collapse. Discounting USDT price vs. USD. Theoretically they should be traded at 1:1 basis, so ifyou dont want to take risk stay away of tether...
And the hack yesterday, may show at folks why Tether is not safe to use

Maybe you have not had that tether has been hacked today and many investors and holders are moving they fund to bitcoin. Tether is not relaible and you should be careful if you have a mind of investing or used it for transactions.

I have been holding some tether on bittrex and cryptopia for quite some time now, is there any particular reason why you assume it's not safe to hold money as tether.

They were hacked (https://coinpricetracker.com/news/bitcoin-ethereum-shrug-off-30-million-crypto-hack/) today and there are signs that they are involved in other suspicious activity such as price fixing.

Just found out about this and I cannot say that I am not surprised. I feel that almost every coin in the crypto world is unreliable and risky to invest into. Only a small portion of crypto coins like Bitcoin, Ethereum etc are worth investing into since they have proved themselves according to me. Initially, I was interested in Tether and thought about buying some tether, but changed my decision since I felt that there were many altcoins which were much better investments for short term and long term profits. After hearing that it got hacked, looks like I made the right decision.

It's not right to say unrealiable. It's right to say unknown, because it's really unknown. They control this tether company and we don't know how they print new usdt coins with their request.

That's the scary part of usdt.

But then they are no better than holding fiat, why I would want to hold such a crypto when they are not transparent about the way they do things, I might as well just keep my money in my debit card and buy bitcoin when I need it, the more I think about it the less sense it makes to hold tether for any amount of time, since in the world of crypto the only store of value is bitcoin and no other coin comes close to fulfill that function.

For me is like using any other altcoin but it's price more stable.

Tether is safe , I have traded with it for sometime now and the rate with usd is very stable.

Tether is a scam waiting to crash down. Dont be caught holding the bag, its a scam created by the exchanges to get easy profits. Its exactly like the banknotes you use in your everyday normal life, they can just create how many they want, whenever they want.

Personally i would not trust it completely because of the recent issues but i guess it would not harm you to use for a very short time. My friend had to put all of his money there for a reason and he was so stressful and nervous.

I will never trust tether, there is no way to redeem a USD for a real USD. If there are any bubbles in the cryptoworld, then this one is the biggest of them all.

A disaster waiting to happen if you ask me. I feel sorry for those unaware of this.

Just transfer your funds to GDAX, and trade them for real USD/EUR/GBP. Security and safety over comfort. Don't make decisions you will likely regret.

tether is not safeand no one can verify if it's backed by real cash.

be careful tether is bitconnect 2.0 and when it will blow up, many big exchanges will collapse.

Tether was getting dumped some a little earlier, I would wait before purchasing any of that unless you want to get less money in return.

why tether would be a good investment now?

It's not safe, it is just and internet money that is not backed by anything and they can print new tether as they like. From what I've read they even refused an audit and that's a very bad thing. Bitshare bitusd is better because it is backed by bitshare but they are not that popular right now.

it's always stable, but i wouldn't put my money in it for long term.
i will store my money in it for day or 2 to wait the the correction of other coins and then buy in again.
in crypto nothing is impossible.

Be very careful about Tether. I cannot confirm myself whether the articles that I have read about the Tether issue are true or not but I think it will at least serve as some sort of a precautionary warning to dig deeper about the truth behind it. I think I have only used Tether once or twice. I would rather see my portfolio's value go down with Bitcoin rather than be stable with something that is not 100% secure. At least I know that with Bitcoin, it will rise after some dumps.

Just quoting this because exactly this has not changed. Whether or not USDT holds it's value, the people behind have to do better to keep this up. As soon as speculation arises that they might not hold the exact amount of USD, at any time, they should be able to provide evidence, e.g. an audit by (preferably) an authority, to suppress that kind of sentiment. Now the media is creating their own story just the way they like it, because adequate information on this is not well provided.

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Their last audit was in September 2017, which showed the exact amount of USD on that bank account. However the fact that there's USD in a bank account tells nobody anything about there being an option to cash out USDT for USD.

I believe Tether just received an inquiry from the Federal Agencies in the US. Their auditors just pulled out and they have been printing tethers into the systems for months now.

All those services, development etc.. costs money. Tether will never be able to deliver 1 Tether = 1USD, it is just not mathematically and economically possible.

Maybe the most important thing is that USDT is still being bought at this moment. There are minor variations in the USD/USDT rate, but none reflect the massive withdraw from that USDT coin. Actually there was a drop about 8-9 hours ago to +/- 0,96-0,97 (+/- 1ct depending on the chart), but it has recovered from that and is now back close to 0,99+. Someone is covering for USDT by buying them?

With just pulled out meaning just a few minutes ago? hours? days?


Yes that raises questions. I mailed them some time ago if their employers all worked for free, but it wasn't answered  ::)

Just think of it, USD and USDT differ only one letter, and the USD is being printed without backup since 1971. And most if not all currency use the USD as backup atm.

And from 0.9854 to 0.9936 USD again, while nobody is able to validate if they can cash out for USD. Everyone's hiding there?

Hope you're out then if/before the US government takes action.

There is no such thing as trust or guarantee in the crypto money world. Follow well, interpret and invest in graphics.

There are a lot of troubled stories related to this crypto currency, so I do not buy it yet. It is unclear why it was created and what benefits it brings. Maybe this is a kind of spy in the crypto world as well as the ripple

Main problem is was not yet cleared if all the coin minted were backed by cash. Plus the fact bitfinex basically own it and may have used it to push the price up artificially is not very encouraging.

Someone told this cost must 1 USD but i see 0.99 Usd.

There are too many rumors about tether but i know that they burned some coins and now it looks legit to me.
But i never hold any tether for now and i will not hold i prefer to turn fiat rather then tether.
Sometimes i use to trade BTC-USDT but not very frequently.

I somehow trust tether than other crypto right now. It has a big volume on binance which shows that there are many traders that are using it as a pair to their trades. having a value of 1$ per coin and maintaining it's value on this bearish market is outstanding.

There are different opinions on Tether situation.
I personally do not belive to this crypto, because their bank statments are just papers and they even to not have its own blockchain :)
I would not reccoment to to keep money in Tether, but it is my view.

I have to admit I am using Tether at times to hold before trading back in to the main coins such as Bitcoin or Ethereum. I am doing this on Binance and it seems useful as a hedge. Maybe it is time to change out to FIAT instead, I wish the situation was clearer.

for me tether is not safe at all, its better if you walk away and choose another ico project besides tether, for me tether is another scam.

Why we have to trust this coin means the value will always stable at $1 and this is good for trading. But holding our profit in USDT for a long time is not safe. end of the day this is also one cryptocurrency so anything can happen. but yes we have to appreciate one thing on this bearish market it maintained the value it's great.

Tether is a token with proof of reserve concept. Algo work on 1:1 it means when we deposit 1$ to the tether then they will launch new tether into the market. i am confused how to we can believe on single bank which holds our deposits. If any thing happen with the bank how tether will exchange USDT to USD. All crypto's are on the developing face so we need to wait until they becomes developed....

all most everything is risk so the tether is also risky. put that in mind.

Tether is a very safe place to exchange from altcoins.