What is Tether? How Does the Tether Work?

Tether

Tether, the USDT, is not a real currency like the dollar, but a kind of cryptocurrency coin. The difference of the Tether from the others is to keep 1USDT = 1USD, so the coin value does not change as a result of the exchange you make. However, this rate may change upwards or downwards, so it may cause losses.

The Exchange rate is equal to 1 tether USD ₮=1 USD $, and it currently supports US Dollars (USD), Euro (EUR) [the Japanese Yen (JPY) soon]. Tether’s currencies show as USD ₮, EUR ₮, and JPY ₮. The Company wants to make Tether available everywhere you can use as a digital currency and in many places where digital currencies are not currently accepted, but still it is in the beta version.

What is Tether Coin
What is Tether Coin

Tether, which is regarded as a risk-free investment by users of the cryptocurrencies, is among the most traded currencies with a substantial exchange volume. The greatest feature of this currency is that it is not affected by the stock market or the actual decline in the market. In fact, even though it is a feature that does not hurt the land, it cannot be said that it has provided a severe profit rate even in the long run. In the future, it may be difficult to maintain this feature.

 

More about Tether

Tether started with a price of $ 1, the coin reached a maximum of $1.03 in 2 years. The main advantage of this cryptocurrency is that it is not affected by the general declines in the market.  However, it may cause disadvantages too. If you exchange your cryptocurrency to Tether for avoiding risks, you may lose your profit from the last cryptocurrency. However, if the other coins increase around 10%, this would be equal to 0.1% for Tether.

Tether name comes from the Tether Limited which is the company who behind the Tether. Currently, JL Van Der Velde is the CEO of Tether Limited, and you can visit the Tether’s official website to see other officers.

Usage of the Tether (USDT)

Tether Coin Review
Tether Coin Review

Tether, which provides the users stable market exchange rates, does not have negative aspects such as commission fees. It is possible to get advantages of the exchange between wallets without any interruption on this. It allows you to use your money in stocks, wallets, ATMs, etc. easily. There are wallet accounts like other cryptocurrencies, and you can store your USDT in this wallet. It has integration with the important companies to shop comfortably. Furthermore, you do not give the extra costs to spend in USDT.

How Does the Tether Work?

The tether exists in the blockchains through the Omni Protocol. The Omni Protocol is an open source software, which interfaces with block chains (like Tether) to allow the export and retrieval of cryptographic simulations. The Tether devotes more or equal to the amount of the coins in its asset to the amount of tether in circulation as a reserve. As a result, it provides to protect the value of Tether.

The Company which behind the Tether has an amount of dollar equal to the amount of Tether in its bank accounts and you can view that from its website. This feature provides you to trust the Tether and invest it efficiently. Besides of these, Tether’s account and movements are regularly inspected by New York LLP companies.

You can visit the transparency page of the Tether’s official website and see the last numbers for USDT. Tether promises that you can always access the company’s balance. Besides of them, from their website, you can see the previous hold and transfer movements of Tether tokens, and read new comments. Furthermore, it lists rich of Tether on their website. Currently, someone has 312,732,220 USDT and the wealthiest person in Tether.

The functionality of the Tether

Tether is preferred in terms of fixing trades for those investing in stock markets. That is to say, the most suitable method for investigators who do not want to be affected by a downfall without any adverse development that may be experienced in the crypto markets is USDT. So you deposit your money in the USDT unit to keep your money from falling graphs. In this way at least your money will remain stable and will not lose its value.
Besides of them, it provides you with some features to use USDT. The latest blockchain systems build tether, and it allows you to control your money with the secure network, fast transactions, almost zero fees, and decentralized system.

How Can You Buy the Tether?

Tether chart of Bleutrade
Tether chart of Bleutrade

There are some crypto stock markets that support Tether cryptocurrency. You can see from the list below. If you want to get USDT, visit this website and get Tether.

  • Poloniex
  • Bittrex
  • Shapeshift
  • Kraken
  • Hitbtc
  • Cryptopia
  • Bitfinex

By using these websites, you can exchange your BTC, ETC or other cryptocurrencies to USDT with no need to your bank account.

Comments for Tether

USD USDT chart of Bittrex
USD USDT chart of Bittrex

Tether brings innovation to cryptocurrency market, and it made a sensation in press and blogs.

“Tether opens up decentralized, peer-to-peer networks to a variety of commercial uses.”

Has written by The Wall Street Journal.

CoinDesk’s comment for Tether is,

“Tether is the latest and perhaps most high-profile project to attempt to use the blockchain’s functionality as a ledger to move digital tokens that represent real currency.”

Besides of them, CoinTelegraph had written a review for Tether, and said:

“Tether seeks to bring the stability and everyday utility of fiat currencies and revitalize them with a cryptocurrency infusion.”

Summary

Cryptocurrencies can make profits of over a hundred percent in minutes, or they cause big losses in seconds. At this point, Tether is engaged and minimizes the risks. You can park your cryptocurrency in Tether and sleep well. It provides this feature by store an amount of dollar equal to the amount of Tether in the company’s bank accounts.

It is not possible to say apparently it is a valuable coin that will appear to be in the long term. It would be a great idea if you invest in the Tether when you want to keep your coins at a constant value and minimum risk.

If you want to get USDT, you can visit cryptocurrency exchange markets such as Poloniex, Bittrex, etc. and convert your cryptocurrencies to USDT.

To sum up, Tether is a cryptocurrency that helps you if you exchange your coins into a stable cryptocurrency, as well taking advantage of open source Blockchain technology.

Tether Facebook

Tether Website

Tether Twitter

About the author

I am graduated from the faculty of communication. I have worked for major companies in the communication field, and acquire more than 12+ years of experience. I like to read empowering books, traveling and researching useful stuff on the internet. For a few years now, I have cultivated and developed a passion in the cryptocurrency world. I have decided to dedicate my time to create some posts on my blog about cryptocurrencies in general. Cryptocurrency World is growing fastly and will have longevity future however it has just born. I intend to improve myself on blockchain technology and share my knowledge.

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