5 Cryptocurrencies Redditors are Buying Before Recession Begins

3. Tether

Tether is a stablecoin. This means that the price of the coin is tied to a third-party asset, in this case the United States dollar, and is less prone to the price volatility associated with other cryptocurrencies. In the past year, the price of Tether has not fluctuated by more than 1% or so, attesting to the stable nature of the asset in the wild crypto market. Tether is also one of the biggest coins in the world in terms of market capitalization, ranking third behind Bitcoin and Ethereum. It includes support for a number of blockchain networks. 

There are also some potential downsides to investments in Tether that should be considered before backing it as a recession investment. Only about a third of the coin is backed by cash, fiduciary deposits, reverse repo notes, and government bonds. The rest of the coin is backed by a short-term money market instrument called a “commercial paper”. According to a report by crypto expert Ann on Medium, Tether has not engaged with reputable firms for commercial paper transactions, increasing overall risk.