About Tether (USDT)
Tether (USDT), also known as the “Stablecoin,” has always been designed to provide a stable price point. The coin was originally introduced in 2014 as the Realcoin, the second-layer cryptocurrency token designed on the Bitcoin blockchain with the Omni platform’s help. Later, Tether was renamed USTether, and now you know it as USDT. After that, Tether was updated to work on EOS, Tron, Ethereum, OMG, and Algorand blockchain.
Tether functions as the Digital dollar of the internet. The net worth of each dollar is $1.00, and in physical reserves, it is backed by $1.00. Millions of blockchain users use the Tether to trade, transact, and hedge on different blockchain networks daily.
All of this is done without the involvement of any trusted third party. Regardless of its popularity in the cryptocurrency markets, Tether has a very controversial history. It is due to the company’s alleged role in manipulating the costs of Bitcoin and for not managing their reverses correctly.
Now, if you are thinking about how this cryptocurrency is useful, remember that it helps all investors transfer funds between crypto markets and traditional financial systems. As a result, Tether minimizes the volatility of its 1-for-1 peg to the USD.
How Does Tether Work?
Tether tokens are assets that move across the blockchain as easily as other digital currencies. But the only difference is that Tether is pegged to real-world currencies on a 1-to-1 basis.
As it is a Stablecoin, its prices are less volatile. Furthermore, Tether, the Stablecoin, makes an important link between cryptocurrencies and the real world. Now, let’s understand how Tether works in detail.
Whenever a user deposits fiat currency in the Tether reverses or when a person sells the fiat to buy the USDT, Tether provides the equivalent digital currency in the form of a token. After which that user can store, send or exchange the USDT per his needs or requirements.
Let’s assume the user deposits $100 in the Tether reverse, and then per the 1-to-1 parity, the user gets 100 Tether tokens. And, when the user redeems the tokens for the fiat currency, the Tether tokens are destroyed and then removed from circulation.
The coin tokens are available on blockchains, including the original with Omni on the Bitcoin platform. Besides that, Liquid, TRON (TRX), and Ethereum (ETH) are the other platforms where you can find the Tether.
Now, if you think about whether the Tether only deals with USD, the answer to your query is a no. The company issues many other Fiats Stablecoins, including one pegged into gold. But, the most famous and widespread is the US dollar-pegged Stablecoin USDT. The USDT is popular around the globe, with a supply of more than 73 billion tokens.
The other Stablecoins issued by Tether are given below:
- Tether gold (AUXT) is pegged to the gold price.
- Tether Yuan (CNHT) is pegged to the offshore Chinese Yuan.
- Tether Euro (EURT) is pegged to the most popular currency of the European Union.
- Tether Peso (MXNT) is pegged to the Mexican peso.
Tether Price Today
Well, many factors influence the Tether Price Today and its market cap. For instance, the sentiment, exchange inflows and outflows, the news cycle, technical and fundamental developments, and the general economic environment all affect the Tether price USD.
Now, if you want to know the current Tether price, you can find it out depending on the cumulative buying and selling of hundreds of participants worldwide. So, if you want to keep an eye on the price of Tether, use the crypto exchange or different cryptocurrency tracking services.
Do you want to look at the future price of this cryptocurrency? It is a Stablecoin, so the current and future prices of the currency will always remain around 1.00 USD. That is because it does not matter how far we go into the future, as the price now would remain almost the same. So, when you predict the price for 2025 or 2030, the score, at least in theory, should remain at $1.
Where is Tether Used Now?
Tether is well-popular and highly valued as this currency is a bit more stable than other volatile currencies whose price variations are unpredictable. The other reason why people love Tether is that they don’t travel through the banks. Instead, you can easily transfer them between the crypto exchanges or other platforms.
At some exchanges, you can also get the Tether’s USDT as the trading pair, letting the users purchase the crypto with a coin pegged in USD. Compared to the volatile price of Bitcoin, Tether becomes a bit better!
Different businesses such as exchanges, financial services, payment processors, wallets, and ATM value Tether. The currency enables them to use the traditional currency on the blockchain.
Besides, the digital coin provides liquidity to exchanges that cannot deal in USD, such as Bitfinex. It might surprise you that many exchanges do not hold your balance in dollars; instead, they hold it in USDT.
It is a bit challenging and tricky to maintain banking relationships in cryptocurrency. Therefore, the exchanges prefer the Tether to value or price the crypto assets in US dollars without USD-denominated bank accounts.
If we discuss it individually, digital currency can be exchanged for multiple goods at various vendors. Also, one can use it to exchange it for different other currencies. For instance, many users utilize Tether to lend, while others can purchase NFTs or participate in ICOs. The flexibility of USDT makes it versatile, and you can use it wherever you want to transact or transfer value.
Here, it is worth mentioning that these tokens are being used to solve real problems worldwide due to their unique qualities. The currency lets the users escape from the inflating currencies, preserve wealth, access financial services, and transfer value efficiently.
Now, if you are concerned about where this crypto is used, there are many regions/countries where people use USDT. Tether has announced a collaboration in Lugano, a city in Switzerland. Besides, people in Latin America, Turkey, Argentina, and Myanmar use this digital currency.
Who Created Tether?
The coin was founded by Reeve Collins, Brock Pierce (a former child actor), and Craig Sellars in 2014. In origin, instead of Stablecoin, it was known as Realcoin. Next year, in 2015, the coin was purchased by new owners from Hong Kong who also owned the Bitfinex crypto centralized exchange. Later, the subsequent currency integration into the Bitfinex ecosystem increased its popularity multiple times.
Till 2017, the coin gained immense growth on the blockchain network with US Dollar transactions processing through Taiwanese banks that then used to pass the transactions on to Wells Fargo.
Later in the same year, US banks blocked international transactions. It happens due to the lack of transparency. Also, the withdrawals were suspended for a short time because of such issues. These events cause severe volatility for the coin.
From 2017 to 2018, the digital coin showed outstanding growth from $10 million to $2.8 billion. Later on, because of a lawsuit, the company paid a penalty of $18.5 million in 2021. The coin has remained suspected in crypto, and many users have doubted its stability and liquidity.
How to Buy Tether (USDT)?
There are various platforms where you can purchase currency. Every platform has its advantages and disadvantages. Besides that, coin prices, transaction fees, availability of various crypto, and additional costs are a few factors that may vary depending on the platform you are using.
The exchanges where you can buy Tether are Kraken, Huobi, Bitpands, Binance, Coinmama, and KuCoin. The following are the steps you will follow to purchase the digital currency.
Step 1: Select The Crypto Exchange To Buy The Tether
You can purchase this coin from any major exchanges mentioned above. You need to open or maintain an account on any of these exchanges and may have to pay the charges per the platform you use. Remember that the company applies its charges for users who buy the Tether directly through an account from the company that runs it.
Step 2: Purchase the USDT
Now, you will enter the ticker symbol on the exchange “Buy” page and then use digital currency tokens or fiat currency to get the Stablecoins.
Step 3: Store The USDT
When it comes to storing the chainsaw coins, there are multiple options you can have. The systems that separate the crypto wallet and the internet are the most expensive but secure.
Maintaining private keys “gapped” means the wallets are disconnected from the internet. This way, it becomes difficult to access the token, especially for investors who want to trade. Additionally, it becomes a better choice for all those who want to keep the coins saved for a long time.
If you are not willing to store or want to sell your currency, then you can check the Tether chart live and decide when you need to sell the coins to get enough profit. Remember that price does not remain all time high. Therefore, check the price before making any decision. Also, the stock chart or graph can help you in this regard.
The following are the different types of storage options you have:
- Hardware Wallets: You may also know hard wallets as cold storage wallets. These encrypted devices are disconnected from the internet to stop hackers who may want to steal digital assets.
- Software Wallets: The most commonly used storage systems are computer programs for storing the keys for the digital tokens and connecting to the internet. It costs pretty low compared to the hardware wallets.
- Paper Wallets: Well, it is an old approach that has kept digital currency safe. The cold wallets are printed on paper or other materials. The wallets bear the alphanumeric private keys for digital assets.
- Crypto Exchanges: The last option you have for storing digital assets is the crypto exchanges. Undoubtedly, you would find it the easiest and the cheapest this way, and you let the tokens sit in the marketplaces as they work like stocks. But trust that the exchanges will not freeze or lose your tokens.
Is Tether Using Mining?
So, for now, you have enough information about the coin, and if you decide to make money through it, it is important to learn if you can mine currency. Well. Unfortunately, the answer is a big no.
Tether currency cannot be mined. If you want to buy, the only way is through tether limited or crypto exchanges supporting the USDT. The Tether cannot be mined because its token is pegged to the USD value. So, this way, mining would go against the real purpose of the crypto.
Multiple platforms or exchanges allow you to create your account or register yourself. After that, you can select the currency of your choice. Lastly, purchase by entering the amount you want to spend to buy the digital coin.
Also, do not forget to check the price history of the coin to get an idea about its stability. Also, you can keep checking the live price to know about the price fluctuations. Likewise, convert Tether to USD when selling the coins and find how much you will earn or lose in your local currency.