Tether, also known on exchanges as USDT, is the biggest cryptocurrency that you have probably never heard of if you are just getting started with crypto. However, it’s one of the most important currencies that you should know about. Tether belongs to a type of cryptocurrencies that are known as ‘stablecoins’. As the name suggests, these currencies have a stable value over time and are also very useful when it comes to keeping the value of other cryptocurrencies stable. Tether doesn’t have its own native blockchain, it was first launched on the Bitcoin protocol via the Omni Layer and since then has migrated to several other blockchains. In fact, the majority of its supply currently exists on Ethereum. As of today, Tether has become an extremely important aspect of cryptocurrency.
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Anycoin Direct offers Tether (USDT) via the Ethereum/ERC-20 network. Always make sure that you transfer your Tethers to and from an ERC-20 supported wallet.
Tether was founded by Craig Sellers, Brock Pierce, and Reeve Collins in 2014. At the time of launch, it was known as Realcoin and later rebranded as Tether. The founders of Tether were familiar with the Omni Layer on Bitcoin and used this as the platform through which they would launch their own currency. What made Tether unique from other currencies was that it was a stable-coin, the first of its kind. No one had experienced a stable-coin before, but what people had experienced was a problem that Tether was about to solve: the lack of an exchange/benchmark currency that functioned like a fiat currency.
When we say that Tether is pegged to a fiat currency we specifically mean the US dollar, USD. The currency Tether is literally tethered to the USD at a 1:1 ratio. This means, theoretically if you have 100 Tether coins (USDT) then you could cash it out for $100 (USD). Tether is also available in three other flavors: UERT (tied to the Euro), CNHT (tied to the Chinese Yuan), and XAUT (tied to gold at a one ounce per token ratio). For the fiat currency variants of Tether they are all tied at a 1:1 ratio, one Tether for 1 USD, 1 Tether for 1 EURO, and 1 Tether for 1 Yuan.
Fiat In Crypto
Trading with cryptocurrency can seem quite intimidating, especially in the beginning. On exchanges, you can trade your crypto for euro or dollar. So when you first want to start trading crypto, you have to purchase your digital currency with fiat valuta. However, one of the characteristics of crypto is that prices fluctuate by the second. At the moment you have purchased your digital currencies, your investment is in the hands of market forces. But what if the price of digital currencies ends in a bear market. In a bear market, then you have different options to consider. One of these options is that you can sell your coins and convert them back to fiat valuta. Another option is to ride out the bear markets and accept the loss. However, Tether also gives the option to convert your digital currency to Tether. By doing this, you will avoid the volatility and fees that you have to pay when you sell and convert your crypto to fiat valuta.
Another reason why Tether is useful is that trading cryptocurrencies with fiat valuta can be an expensive process. If you want to sell your digital currency, and want to transfer this back to fiat valuta, then the bank and exchange will charge you. Furthermore, when you convert fiat again to purchase crypto later on, again you are charged. This will not only be expensive, but it also takes more time. Instead, you can just convert to Tether and keep your money in the form of USDT or any other variant of Tether and not worry about losing money or having to pay fees for exchanging currencies. Furthermore, it also saves more time, and thus you can convert it back faster.
|Ticker Symbol||USDT, UERT, CNHT, XAUT|
|Founder(s)||Craig Sellers, Brock Pierce, Reeve Collins|
|Date of Release||6th October 2014|
|Consensus mechanism||Proof of Reserves|
|Circulating Supply||61,783,335,674 USDT coins|
|Average Block Time||10 minutes|
|Next Block Halving||n/a|
|Smart Contracts||as an ERC20 smart contract|
More than the fact that it is a fiat-backed cryptocurrency, what makes Tether USDT (ERC-20) even more attractive is that it is based on the Omni blockchain which is in itself a dynamic and versatile platform. One of the factors that make Omni incredibly secure is its dual recording strategy which records each transaction on the Omni system as well as in the Bitcoin blockchain while both transactions share the same hash.
More recently, ERC-20 variants of these tokens have also been launched and now you can find Tether as an ERC-20 token on Ethereum too. Moreover, as Tether becomes available on more and more blockchains, the usability of this cryptocurrency is increasing drastically.
Easy on exchanges
Not all exchanges permit fiat currency deposits or withdrawals, when you have Tether it is just as good as a fiat currency. It allows you to use a lot more crypto-specific exchanges and enjoy their unique benefits. With Tether pegged with the USD, you can trade Tether just like you would trade fiat currencies.
Sending fiat around the world costs money. With certain crypto’s, the transaction fees are extremely favorable. With Tether you can use it as a digital version of USD and send money anywhere in the world with virtually no cost. It's just as good trading a cryptocurrency, with the difference being Tether’s stability.
Perfect For Trade
When you start paying and in cryptocurrency for goods and services, it can become quite confusing to understand how much you are paying or receiving since you have to keep converting the rate of the crypto to USD and see what it works out to. With Tether, there are no conversions, it's already at the rate of the USD which makes it perfect for all kinds of payments.