What is Tether (USDT)?
What is USD Tether (USDT)?
Tether (USDT) is a blockchain-based digital asset that represents the US Dollar. 1 Tether token has a stable price which is almost equivalent to 1 dollar. Therefore, USDT (Tether) is also called a stablecoin whose value is pegged to the US dollar. USDT is here to protect its users from the high volatility of the cryptocurrency space. In crypto exchange trading, each USDT token can be exchanged into US dollars via the Tether platform, this exchange has been set with a price range of 1 USDT = 1 Dollar.
Tether’s main purpose is to facilitate transactions between cryptocurrency exchanges and the exchange rate for the United States dollar.
How is USDT different from USD?
The difference between USDT and USD lies in the regulations and policies that cover them. If USD is regulated from direct regulation by the Federal Reserve in the United States, USDT enters into a cryptocurrency created by the company Tether Limited. In September 2017, Tether published a memorandum from the public accounting firm. This memo explains that the Tethers token is secured by fiat US dollars. However, of course, the Tether was not “officially” issued by the government authorities.
What is Tether (USDT) used for?
Tether (USDT) is a stable medium of exchange designed for financial transactions that take place on the internet. By leveraging Blockchain technology, Tether (USDT) allows you to store, send and receive US dollars, in the form of digital tokens. In addition, USDT can be used as a transaction tool to buy coins and other tokens, peer-to-peer transactions globally, instantaneously, and also securely without high transaction fees.
What are the advantages of Tether (USDT)?
• Guaranteed 100% by US Dollar
For each Tether (USDT) in place, as much as US$ 1 is deposited in a bank account. Tokens were launched at a 1: 1 USD / USDT ratio, but USD reserves have since been declining. The popularity and number of transactions keep the USD / USDT price constant at 1: 1.
• Offers Stablecoins and more
Tether also offers euros, yuan, and gold stablecoins, allowing its holders to diversify their asset holdings across multiple currencies and commodities.
• The link between fiat and cryptocurrencies
Tether (USDT) combines the efficiency, security, and transparency of the blockchain with the functionality and value of fiat currencies.
• Potential counterparty risk
Tether (USDT), like all other stablecoins, carries significant counterparty risk as its price stability is achieved by an issuer that maintains its value credibility with a sufficient amount of reserve. If anything happens to this credibility, the value of the stablecoins could be questioned.
What are the current USDT pairs?
The most popular USDT pairs today are BTC / USDT and ETH / USDT. However, currently, USDT is the basis of another coin / token pairings.
How to Buy USDT?
You can get USDT by buying them at an exchanger.
Archidax is one of the best exchange platforms and can be your choice to buy, sell, and trade BTC easily with good security.
Source : f.a.s
