Tether – exchange rate stability
What is Tether (USDT)?
Tether (USDT) is a stablecoin pegged to the US dollar and backed “100% by Tether reserves,” as the Tether website says. Tether is owned by iFinex. This is a company registered in Hong Kong, among its assets is the BitFinex crypto exchange.
Tether appeared in July 2014 under the name RealCoin and changed its name to Tether in November. In February 2015, he began trading on exchange. First, Tether was made on the Bitcoin blockchain, and now Tether supports the Omni and Liquid Bitcoin protocols, as well as the Ethereum, TRON, EOS, Algorand, Solana, OMG Network, and Bitcoin Cash (SLP) blockchains. Tether is one of the largest cryptocurrencies by market cap. As of August 2022, it ranks #3 with a market capitalization of $66.5 billion.
It should be noted that there is a very important question for Tether regarding the underlying assets of the cryptocurrency. No one can reliably say whether the issuer of this cryptocurrency has assets worth 66.5 billion US dollars to justify its market capitalization and the Tether to USD exchange rate at 1 to 1. The only information available is the company’s website, in which there are no 100 % information about assets that should ensure the stability of the Tether exchange rate.
Tether Mining
Unlike most cryptocurrencies, Tether cannot be mined.
How to buy Tether?
If you want buy Tether or any other cryptocurrency, you should do it through reliable services. One of them is Leoexchanger!
How to work with Tether?
The main uses of Tether:
Paying for goods and services. There are many different goods and services that are sold for cryptocurrencies. In 2022, you can buy almost everything with cryptocurrencies, from small goods to cars and real estate.
Trading. Considering the stability of the USDT rate, it’s almost impossible to buy and sell Dogecoin and earn on price changes. On the other hand, Tether can be used as a “safe haven” during high market volatility.
USDT price dynamics (in USD)
How to store Tether?
There are two main ways to store Tether – on an exchange and in a crypto wallet.
- Exchange. When buying Tether on a cryptocurrency exchange, for example WhiteBit, you can leave it on your personal exchange account. This is the easiest way because you don’t have to install any additional programs. In this case, there is also a negative side – physically, your Tether is not with you. If you lose your exchange account, you will lose access to your USDT.
- Crypto wallet.. When buying crypto, you can put it in your crypto wallet. There are many options on how to classify crypto wallets. One of them is a hot/cold wallet. A hot wallet has a permanent internet connection, a cold wallet does not have a permanent internet connection. They are also divided according to the place of installation – browser, online, desktop, mobile, hardware. You can study the experience of users of different wallets and choose the most convenient option for you.
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