Should You Buy Tether?
Tether is currently one of the most important cryptocurrencies in the world, considering its market capitalization. In this article, you’ll find more info about what is Tether and how it differs from other cryptocurrencies.
Tether represents a core cryptocurrency in many strategies for investors. Tether helps to ensure liquidity and hedging against market volatility.
Like other stable cryptocurrencies, the USDT is very easy to use in trading because it allows investors to protect themselves against possible losses from market volatility. Using stable cryptocurrencies like Tether also eliminates additional delays and costs when converting cryptocurrencies to fiat currencies.
Tether is often seen as the currency with the largest daily trading volume, surpassing even Bitcoin.
Tether is considered the first stable cryptocurrency (a cryptocurrency having a value similar to a fiat currency). It was initially launched as Realcoin in 2014 by Reeve Collins, Brock Pierce and Craig Sellers.
Realcoin was renamed Tether in November 2014 by Tether Ltd., the company that is responsible for maintaining fiat currency reserves. Tether began trading in February 2015. USDT can be traded on popular cryptocurrency exchanges such as Binance.
USDT was initially issued through Omni Layer on the Bitcoin protocol but has since moved to other blockchains. Most of it exists as an ERC-20 token on Ethereum. It is also present on other blockchains, including EOS, TRON, Solana, Algorand, and OMG network.
USDT is unique in that it operates on the Omni Blockchain protocol. Omni is a versatile platform that is best known for its Bitcoin anchoring capabilities. Currently, Omni assets have anchors on several blockchains, especially for Litecoin, and recently, developers have introduced additional ERC-20 chips.
Tether is a blockchain-based cryptocurrency that is backed by an equal amount of fiat currencies, such as the euro or dollar, that are kept in a designated bank account. Tether tokens traded under the symbol: USDT .
The currency is traded (generally) at a stable one-to-one rate with USD. However, significant market events may have an effect on its price.
According to the Tether White Paper, each Tether unit issued in circulation is supported in a one-to-one ratio (i.e., one USDT Tether is equal to one US dollar) by the corresponding fiat currency held in the Tether Limited deposit headquartered in Hong Kong.
Tether has been specially designed to build the necessary bridge between fiat and cryptocurrency and to provide users with stability, transparency, and minimum transaction fees. It is pegged to the US dollar and maintains a 1 to 1 ratio to the US dollar in value. However, Tether Ltd. makes no warranty as to any right to repurchase or exchange Tether for real money – meaning Tether cannot be exchanged for US dollars.
