Investing With Tether: A Guide to Using USDT for Wealth Growth
Tether (USDT) offers a unique opportunity to grow your wealth while minimizing the impact of market volatility. This guide explores how you can leverage USDT on Bybit, from straightforward Spot trading to advanced investment strategies like Derivatives, Pre-Market Trading and more.
Key Takeaways:
USDT offers a stable foundation for crypto investments, minimizing market volatility and enabling diverse strategies on Bybit — from Spot trading to advanced strategies like Derivatives and Pre-Market Trading.
By leveraging USDT across Bybit's financial products, investors can tailor their strategies to balance risk and reward, from low-risk savings plans to high-risk, high-reward derivatives.
Understanding the various Bybit investment tools and their associated risks is crucial to maximizing returns while using USDT to grow wealth in the volatile crypto market.
What Is USDT?
USDT, a stablecoin cryptocurrency pegged to the U.S. dollar, is issued by Tether Limited to provide liquidity and hedge against market volatility in the crypto ecosystem.
How to Buy USDT on Bybit
Buying USDT on Bybit is a straightforward process. There are five ways to purchase USDT on Bybit: Bybit P2P, One-Click Buy, Bybit Card, Auto-Invest and Bybit Convert. Before you can buy USDT on Bybit, you’ll have to register first or log in to Bybit and complete identity verification.
Bybit P2P is a zero-fee, peer-to-peer trading platform connecting you to sellers from all over the world. With P2P trading, you can trade USDT with the seller at an optimal, agreed-upon price. Please note that you’ll need to have fiat currency in your Funding account in order to perform a P2P transaction.
Alternatively, head to One-Click Buy and make payment via credit/debit card, Apple Pay/Google Pay, bank transfer, third-party payment or Fiat Balance. To make payment via Fiat Balance, you'll need to deposit fiat currency into your Bybit account.
Bybit Card is a debit card that you can use to buy USDT via One-Click Buy. When you use the Bybit Card to buy USDT, you can even earn passive income through its Auto-Savings feature, whereby your idle USDT assets will automatically be invested in Bybit Earn’s Flexible Savings.
You can also opt to grow your USDT holdings via Auto-Invest, with which you subscribe to automated buy orders according to your predetermined parameters. You may choose to buy USDT with a supported fiat currency (which you must first deposit into your Funding account), or with USDC.
It’s also possible to convert your available crypto assets into USDT without any fees or slippage via Bybit Convert. Instant transactions are executed by leveraging Bybit’s order book, which matches the user's request with a suitable order. This service is currently available through Bybit’s Spot, Funding, Derivatives, Inverse Derivatives and Unified Trading accounts. Therefore, you must move your funds to any of these accounts before you start the conversion process.
How to Invest With USDT
Investing with USDT on Bybit offers a variety of options to suit different investment strategies.
Bybit Spot
Investing in Bybit Spot involves buying and selling cryptocurrencies at the current market price, aiming for immediate delivery.
Step 1: Sign up for a Bybit account and complete the identity verification process.
Step 2: Go to the Assets section, select Deposit, choose USDT and follow the instructions to transfer funds from your wallet or another exchange.
Step 3: Navigate to the Spot section to view available trading pairs.
Step 4: Choose a pair with USDT, such as BTC/USDT or ETH/USDT.
Step 5: Select Market Order for immediate execution at the current price, or Limit Order to set your desired price.
Step 6: For a market order, enter the amount of USDT you wish to spend. For a limit order, set the price and amount.
Step 7: Double-check your order details.
Step 8: Submit your order. Market orders execute immediately, while limit orders execute at your specified price.
Step 9: Monitor and manage your trade in the Assets section.
Bybit Pre-Market Trading
Go bullish on new tokens before their official market release with Bybit’s Pre-Market Trading feature. Here’s how you can go about it with USDT.
Step 1: Sign in to your Bybit account. Upgrade to a Unified Trading Account (UTA) if needed.
Step 2: Go to the Trade tab and select Pre-Market Trading.
Step 3: Create or fulfill an order:
As a Maker: Select the coin, click on Create Order, choose Buy or Sell, enter your Price and Order Quantity and confirm.
As a Taker: Browse available orders, choose one and confirm.
Step 4: View and manage active or past orders, or cancel incomplete ones if needed.
As a seller, you’ll pay a transaction fee and a collateral amount based on the pledge rate. You'll lose collateral if you fail to deliver the token on time. As a buyer, you’ll pay a transaction fee on top of the order amount, and if the seller fails to deliver, you'll receive 90% of the seller’s collateral as compensation.
Bybit Derivatives
Bybit Derivatives allow you to speculate on the future price of cryptocurrencies without owning them. Here's how to get started with USDT.
Step 1: Go to the Derivatives tab and select your preferred contract type, like USDT Perpetual.
Step 2: Pick a contract, such as BTCUSDT or ETHUSDT.
Step 3: Choose between a Market Order for immediate execution, or a Limit Order to set your own price.
Step 4: Select your leverage level — higher leverage increases both potential profit and risk.
Step 5: Input the amount of USDT and other order specifics.
Step 6: Double-check all details, including leverage and order value.
Step 7: Submit your order and monitor your position.
Trading derivatives is complex and risky. Ensure you understand the product and trade responsibly.
Bybit Pre-Market Perpetuals
You can enter derivatives contracts before the underlying assets are officially listed through Bybit Pre-Market Perpetuals. Here’s how:
Step 1: Go to the Derivatives tab and click on Pre-Market Perpetuals.
Step 2: Choose the Pre-Market Perpetual you’re interested in, and click on Join Auction Now.
Step 3: Auction participation:
For contracts not yet in auction, view auction details and subscribe for notifications.
For ongoing auctions, click on Join Auction Now to access the order page. Only limit orders are supported.
Step 4: Enter your order details, including price and quantity of USDT.
Step 5: When the auction starts, the system matches buy and sell orders at the opening price.
Pre-Market Perpetual prices may differ from official listings. Be aware of the risks involved, and invest responsibly.
Bybit Savings
Bybit offers a simple way to earn interest on your cryptocurrency holdings using USDT.
Step 1:Navigate to the Finance tab and select Earn, then click on Bybit Savings.
Step 2: Explore available plans by Coin, Staking Duration, APR and Term. Select a plan that accepts USDT. (Note: Make sure that you understand the plan’s terms, including interest rate and staking period. Choose between Flexible Savings for anytime withdrawal, or Fixed-Term Savings for higher interest.)
Step 3: Click on Stake Now for your chosen plan, enter the amount of USDT and confirm the details.
Step 5: After reviewing, confirm your investment. Your USDT will be staked, and interest will begin accruing.
Interest isn’t compounded automatically; you must manually reinvest. While Bybit Savings is low-risk, always research and consider your goals before investing.
Bybit Wealth Management
Bybit Wealth Management offers a hands-free investment experience with professional management within Bybit’s secure ecosystem. Investing with USDT in Bybit Wealth Management is straightforward.
Step 1: Go to the Finance section, choose Earn from the drop-down list and select Wealth Management.
Step 2: Review the curated investment strategies designed to generate returns in various market conditions.
Step 3: Choose a plan that aligns with your goals and risk tolerance.
Step 4: Enter the amount of USDT you wish to invest.
Step 5: Enable Auto Reinvest to compound your yields and maximize returns.
Step 6: Some products offer Early Redemption, allowing you to unstake assets if needed.
Bybit Liquidity Mining
Investing with USDT in Bybit Liquidity Mining allows you to provide liquidity to trading pools and earn returns. Here's how to get started.
Step 1: Go to the Earn section and select Liquidity Mining.
Step 2: Browse All Pools and choose one that supports USDT.
Step 3: Add Liquidity:
Click Add to enter the Add Liquidity page.
Add two tokens of equal value, or a single token (which the system will convert).
Enter the amount of USDT you wish to invest, and select your preferred leverage.
Step 4: Review your order details, then click on Add Liquidity.
Step 5: Go to My Liquidity to:
add, remove or swap tokens
claim and reinvest yields
adjust leverage
Be aware of risks, such as impermanent loss and market volatility. Monitor your positions, especially when using leverage.
Bybit Dual Asset
With Bybit’s Dual Asset product, you can speculate on price movements using USDT and earn returns based on your predictions.
Step 1: Go to the Finance section, select Bybit Structured Products and click on Dual Asset.
Step 2: Select Buy Low (invest in USDT) if you’re predicting the asset price will decrease, or Sell High (invest in the coin) if you believe it will increase.
Step 3: Choose the pair you wish to trade, such as BTC/USDT.
Step 4: Decide the price at which you want to buy or sell the asset.
Step 5: Select the duration of your investment. The APY and target price refresh every minute, based on market movements.
Step 6: Click on Select to choose your investment. Check all details, including target price, subscription amount and investment period.
Step 7: Enter your investment amount and click on Order Now to finalize your investment. Returns depend upon whether the settlement price is above or below your target price at the end of the investment period.
Dual Asset is speculative, and involves risk. Returns depend upon market movements and the accuracy of your predictions. Invest responsibly within your means.
Bybit Double-Win
Bybit Double-Win is a structured product designed for investors that aims to help you profit from market volatility. Here’s how to invest with USDT:
Step 1: Find the Double-Win section under the Bybit Structured Products tab.
Step 2a: There are two modes to choose from: Classic Mode and Custom Mode. For Classic Mode, review available short-term plans with an all-or-nothing payoff structure, then select your desired plan by clicking on Buy Now.
Step 2b: For Custom Mode, first select the coin and plan duration.
Step 3: Define the Double-Win range by setting a price range, one that you believe the asset will move outside of by the expiration date.
Step 4: Enter the amount of USDT you wish to invest.
Step 5: Click on Get a Quote to update the result simulator in order to estimate your potential Profit and Loss (P&L).
Step 6: Click on Buy Now to select the plan.If the price at expiration is outside your range, you win and receive leveraged returns. If it’s inside the range, you lose the investment.
Since Bybit Double-Win offers a quick turnaround with settlements possible in as little as eight hours, as well as the potential to profit from both rising and falling markets, it provides a way to hedge against market volatility. However, it’s a high-risk product with the potential for total loss.
Bybit Smart Leverage
Bybit Smart Leverage allows traders to use up to 200x leverage to make directional bets on the market while minimizing liquidation risk before settlement.
Step 1: Click on Finance → Bybit Structured Products, and select Smart Leverage.
Step 2: Explore available plans based on Coin, Direction (long or short), Leverage, Breakeven Price and Term. Select the one you prefer. (Note: You can use the simulator to estimate your potential Profit and Loss (P&L).
Step 3: Click on Buy Now to set up your Smart Leverage plan. The platform will calculate a fixed breakeven price, which won’t change once confirmed.
Step 6: Review all details, including the breakeven price and payout scenarios, and then confirm your investment.
Smart Leverage is high-risk and non-principal-protected. Ensure you understand the product, and trade responsibly within your financial means.
The Bottom Line
USDT offers a stable foundation for diverse investment strategies on Bybit. From straightforward spot trading to sophisticated structured products, understanding your options and risks ensures effective use of your USDT holdings. Invest wisely and stay informed to maximize your potential returns while managing risk.
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