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Tether (USDT): a guide for beginners!

Tether is a cryptocurrency that was first created in 2014 by Brock Pierce, Craig Sellars, and Reeve Collins. It is based on the Omni Protocol, Ethereum, and TRON blockchains, and its goal is to maintain a 1:1 exchange rate with the US dollar. According to the available information, Tether is the most sought-after stablecoin in the world. 

How does Tether work?

Stablecoins such as Tether is pegged to the real-world currency, also known as fiat (e.g. US dollar, euro, etc.). They have introduced many benefits to the world of crypto trading and mostly, they’re there to provide protection and liquidity from the instability of the cryptocurrency market. Tether is the main currency of tether.bet!

Other cryptocurrencies such as Bitcoin and Ethereum offer many benefits. One of the most important is the lack of need for intermediary payment institutions, which makes their use easier for everyone around the world. But, the key drawback is the fact that cryptocurrency prices are unpredictable and tend to fluctuate, sometimes in double-digit percentages over a short period.

Stablecoins like Tether do not face any such problems. Instead, they subdue to some very negligible price fluctuations and closely follow the value of the fiat currency they mimic. As such, they serve as a safe haven in the world of cryptocurrency.

Main Features of Tether (USDT)

Tether is a cryptocurrency that was first created in 2014 by Brock Pierce, Craig Sellars, and Reeve Collins. It is based on the Omni Protocol, Ethereum, and TRON blockchains, and its goal is to maintain a 1:1 exchange rate with the US dollar. According to the available information, Tether is the most sought-after stablecoin in the world. 

Stability
Because it mimics the value of a US dollar, Tether is considered an initial cryptocurrency thanks to which the investors have the ability to adjust the investment strategy to their needs. Its task is to offer stability and security, but also flexibility. In the world of cryptocurrency, it plays the same role as the US dollar when trading on stock exchanges.

Decentralised
Every cryptocurrency is decentralised, which means that there are no banks or government involved in your transactions. That comes with many benefits: your transactions are way faster, transaction fees are minimal and your identity remains hidden.

Convenience
All you need in order to process your payments from anywhere in the world is a digital wallet and an internet connection. Also, if you have a diverse portfolio of cryptocurrencies and you want to avoid the bear market price falls, you can always turn your funds to USDT to prevent them from dipping.

Conclusion

It is important to note that Tether users are protected from cryptocurrency volatility, but are still exposed to price fluctuations in the pegged fiat currency. 

Because of the reliability it provides, it is always useful to have Tether for further investment and crypto trading. In recent years, we have witnessed an enormous rise in the use and value of cryptocurrencies. We might as well get ready because the cryptocurrency is on its way to take over as a payment method of the future!

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