11.05.2022
What is Tether cryptocurrency?
Tether is the first stablecoin on the digital market (cryptocurrency asset), which directly depends on the price of fiat currencies. Initially, the coin was called Realcoin, however, during subsequent work, not only the name, but also the technology itself changed.
Tether was developed in 2014 by three people: cryptocurrency investor Brock Pierce, software developer Craig Sellers, and businessman Reeve Collins. At the moment, Stanley Hainsworth, previously vice president of the marketing department at Starbucks, has been appointed as the head of the project.
The idea behind the creation of Tether was directly to develop a stablecoin that could be used as a digital dollar. Therefore, the USDT cryptocurrency is tied to the exchange rate of the US dollar. But it is also influenced by the euro and the Japanese yen. The coins are held in reserves under the name «Tether Limited» and are purchased as a result of interaction with the Tether platform.
Key features of cryptocurrency
The main feature of the cryptocurrency is that it is a stablockion.It comes down to the fact that there is no chain of blocks in transactions, and the cryptocurrency itself is backed by a reserve of fiat money, that is, the tether does not have its own blockchain. A stablecoin is issued based on a foreign blockchain, similar to Bitcoin, using the EOS, Ethereum (ERC-20), OMG Network, Omni Layer, TRON, Algorand, Solana, Binance Smart Chain, Binance Chain and OMG Network protocols. Thus, pre-arranged other decentralized schemes are used to carry out financial transactions. Further, the issued tokens can be sold and bought between users for another cryptocurrency, or simply stored on the user's personal wallet or the company's commercial account.
USDT is a crypto coin that is used in almost all corners of the world, with the exception of those countries where the legislation prohibits the use of digital assets. Quite quickly, coins began to gain their popularity in 2017, at that time new opportunities for users were developed in order to minimize restrictions on exchange transactions.
Pros and Cons of Tether
The main advantages of cryptocurrencies that you should pay attention to:
- Price stability due to pegging to the US dollar. Such a binding positively contributes to the trading and use of these digital assets not only for large investors, but also for ordinary users.
- Transparency of financial calculations. Tether developers constantly check the availability of funds on the reserves, so that the amounts correspond to the requests of users.
- The positive aspects of this coin include relatively low commissions. The exchange fee is charged when transferring money from one wallet to another that supports USDT.
- Transactions involving fiat money between partners and contractors that are carried out through the Tether system itself are much faster and cheaper than payments through banks.
- The use of blockchain technologies makes transactions as profitable as possible for trading with ordinary money and digital currencies.
- Rapidly growing popularity among users. Previously, some platforms could not use the dollar in exchange transactions, but over time they expanded their functions, thereby increasing the number of opportunities and the number of users.
- Availability of reserve funds, which ensures the stability of the USDT rate.
Cryptocurrency Disadvantages:
- The inability to obtain coins through mining, which immediately repels the work of a certain circle and number of people.
- Partial anonymity. Many users claim that the need to invest fiat money in the crypto network makes the anonymity of the participants of the cryptoplatform incomplete.
- It is generally accepted that the cost of Tether is approximately equal to 1 dollar, sometimes there are fluctuations in the price.
What are the formats of Tether cryptocurrency accounts?
Initially, USDT was issued on the Bitcoin blockchain, but due to the rapidly growing popularity of the coin and for everyone's convenience, the company began to issue new coins on different platforms, for example:
- OMNI — USDT protocol, was released on the Bitcoin blockchain;
- ERC20 — USDT protocol, was released on the Ethereum blockchain;
- TRC20 — USDT protocol, was released on the Tron blockchain;
- BEP2 — USDT protocol, was released on the Binance blockchain;
- BEP20 is the smart chain of Binance.
In addition to the above protocols, the cryptocurrency is issued on Tether Gold, Algorand, EOS. Here, the cost of a cryptocoin is tied not to the US dollar, but to gold. It is important to understand all the protocols and try not to confuse them with each other, because each type of tether is used only in the environment of the blockchain on which it was created. Therefore, it is not recommended to send crypto from one network to another.
How to buy USDT?
If you want to buy or sell USDT, then there are a couple of very interesting options for you. Exchange operations with USDT are publicly available on the official Tether website. In order to purchase coins, you need to register and verify documents on the site. After successfully verifying your identity, you can start buying these coins.
Also a very good option for buying a tether are cryptocurrency exchanges such as Binance, Coinbase, FTX, Kraken, KuCoin, etc. Most of them have mobile applications that make it much easier to work with the system.
In case you do not want to spend a lot of time on verification and making an application manually, there is a way to buy cryptocurrency from individuals, but we hasten to warn you that such transactions are most at risk. The transaction will be fast, but not secure.
But the simplest, optimal and very effective option for financial transactions with cryptocurrencies are crypto exchangers. To date, there are a huge number of online exchangers and in order not to make a mistake with the choice, you should always read the reviews of the service's customers on popular platforms.
On our website, you have the opportunity to exchange USDT under the most favorable conditions, as well as study the reviews of our regular customers.
Where can Tether cryptocurrency be stored ? Tether Wallet
To store absolutely all cryptocurrencies, you need a crypto wallet (USDT wallet) that will support your chosen cryptocurrency. Every experienced trader has his own criteria for choosing a crypto wallet, taking into account the nuances of security, accessibility and confidentiality.
USDT cryptocurrency can be stored on special exchanges, such as OKEx, Huobi, Bybit, ShapeShift, Binance, or wallets that provide opportunities for trading these coins. The most popular crypto wallets for storing a token today are: Omni wallet; Holy Transaction and many others.
Prospects for the development of the crypto asset Tether
Tether is considered an important digital asset of the entire cryptocurrency system. In February 2022, this cryptocurrency ranked third in terms of market capitalization with a mark of almost $78.7 billion, behind Bitcoin and Ethereum. This digital asset has a fairly good profitability and relatively stable volatility. In fact, on the entire cryptocurrency market, this is the most popular stablecoin today.
At the moment, there are almost 65 billion USDT stablecoins in circulation, and if we compare such provision with coins in percentage terms, then almost 75% of all assets retain their original value due to different equivalents and cash.
The Tether cryptocurrency is represented on a wide variety of proven blockchains and trading platforms. Recently, the cryptocoin has shown quite a good growth in trading volume and liquidity. Due to its unique technology, the tether managed to form its own market, which combined digital assets with fiat money. In this regard, the cryptocurrency has all the components for the further development and popularization of its platform.
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