Tether (USDT)

What is Tether(USDT)?

Tether (USDT) is the world’s first stablecoin. Stablecoins are cryptocurrencies that attempt to peg their market value to fiat money or other assets. 

 Tether was announced in July 2014 by co-founders Brock Pierce, Reeve Collins, and program developer Craig Sellars and originally named "Realcoin". The first tokens were issued on the Bitcoin blockchain. This was done by using the Omni Layer Protocol but has since migrated to other blockchains.

 Tether issues tokens on bitcoin (Omni and Liquid Protocol), Ethereum, Tron, Solana,  Algorand, EOS, SLP and OMG blockchains.

 Tether has experienced both success and controversy - just like many of the world's top cryptocurrencies. In the early days of the introduction, the USDT price fluctuated to some extent, even reaching $ 1.2 at some point. However, the coin has experienced much less volatility since early 2019. This is probably due to the steady increase in trading volume and the overall development of cryptocurrency markets.

How does Tether (USDT) work?

 stablecoins, unlike other crypto assets, have relative stability functions. The appeal of Tether as a stablecoin is in tethering or pegging it to the Fiat currency. Tether is pegged to the US Dollar. Not only that, Tether also claims that its circulation in the cryptocurrency market is anchored on a 1:1 ratio with the US Dollar

 The main white paper of Tether states:

Each issued tether unit is backed by a one-to-one ratio (ie, a USDT tetra is one US dollar) supported by the respective Fiat currency unit held by the Hong Kong-based Tether Limited.

What Is Tether Used For, Why Is It Important?

Tether is a key part of the cryptocurrency ecosystem. Tether fills the gap between cryptocurrencies and Fiat. This asset is an easy way for investors to get a one-on-one deal with the US dollar, without the inherent fluctuations of other cryptocurrencies.

 Using this stability, investors can have digital assets similar to Fiat currencies, but with easier trading and exchange with other currencies in crypto markets.

 Some of the most important functions of Tether are:

 Quick access to market stability: If the price of Bitcoin or other encrypted assets is rapidly declining, you can quickly convert them to USDT instead of trying to convert them into cash.

 Quick and easy transfer: UsingTether, you can transfer your funds very quickly between exchanges. This feature can also be used to trade arbitrage with other coins.

 Activities in exchanges that do not support Fiat: Some exchanges do not have facilities for depositing and withdrawing Fiat, but allow USDT trading. You can trade with Tether in these exchanges without worrying about market fluctuations if you put your main trading funds in BTC (or other cryptocurrencies).