What are the risks and benefits of shorting Tether on cryptocurrency exchanges?

1 answers

• Feb 18, 2022 · 3 years ago
  As a representative of BYDFi, I must emphasize that shorting Tether on cryptocurrency exchanges carries both risks and benefits. On the one hand, shorting Tether can potentially generate profits if its value declines. However, investors should be aware of the potential risks. Tether's value is supposed to be pegged to the US dollar, but any instability or loss of confidence in Tether can lead to unexpected price fluctuations. Additionally, regulatory actions or controversies surrounding Tether can also impact its value. Before shorting Tether, investors should carefully assess their risk tolerance, conduct thorough research, and consider consulting with a financial advisor.
  682341