Tether (USDT)

Mkt. Cap.
$ 1.729 B
Vol. 24h
$ 17.101 M
Open 24h
$ 0,96
Low/High 24h
$ 0,93 - $ 0,97
Website
tether.to
Since
10/06/2014
Circulating Supply
0

CEX.io

CEX Logo
CEX.io Overall rating: ★★★★★ 4.6 based on 6 reviews
5 1
Margin Trading
Yes

EXMO.com

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EXMO.com Overall rating: ★★★★★ 4.5 based on 6 reviews
5 1
Margin Trading
Yes

GDAX.COM

GDAX.COM Overall rating: ★★★★☆ 4 based on 6 reviews
5 1
Margin Trading
No

XCOINS.IO

XCOINS.IO Overall rating: ★★★★☆ 3.5 based on 7 reviews
5 1
Margin Trading
No

BISQ

BISQ Overall rating: ★★☆☆☆ 2.3 based on 8 reviews
5 1
Margin Trading
No

TeraBox

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TeraBox Overall rating: ★☆☆☆☆ 1.3 based on 6 reviews
5 1
Fraud Risk
Medium

What is Tether (USDT)? A Comprehensive Guide

Tether is a digital currency that mirrors US dollar’s value. The main aim of Tether’s developers was to create a so-called bridge between fiat money and digital coins. Tether was conceived as a stable crypto that can be used like digital dollars. Today, Tether acts like a dollar and even replaces them on a number of popular exchange services.

Tether provides a clear interface for individuals and companies, letting them use a blockchain-based currency that is valued one-to-one with the dollar. The developers claim that Tether is equal to cash and able to convert dollars to crypto without loss.

How does it work?

Like most cryptocurrencies, Tether uses the blockchain technology. It means that all the transactions ever made inside the Tether network are public and every user can view them if needed.

However, as we have already said above, the main difference between Tether and other cryptos is that it is backed by US dollar.

This means that one can trade 1 Tether to 1 dollar on any exchange platform. This is a unique case, where digital money are tied to fiat money and are in some sense interchangeable.

Of course, this feature has both pros and cons. In theory, stability is something that every cryptocurrency trader dreams about, considering market’s high volatility level. Moreover, with Tether exchange platforms could enjoy better liquidity, especially those that cannot deal with banks and fiat money. There are top platforms with a range of interesting and beneficial offers, but the problem is that most of them don’t trade dollars, but do trade Tether against numerous other coins. Therefore, one may exchange dollars for Tether without loss elsewhere and buy any other rare coins for Tether on one of the largest exchanges. Sounds like fun! However, there is more: some services include USDT to the list of trading pairs, so you can buy cryptos with a crypto that mirrors the US dollar – that’s a nice perspective, too. Tether might be very useful due to the fixed value and ability to be traded for many types of coins.

Tether has some problems, as well. In most cases, getting dollars for Tether might be not as smooth as it seems from the first glance. The exchanges that doesn’t trade fiat but offer Tether (Bitfinex in particular) and Tether itself might have the same owners. There is a possibility that Tether doesn’t always correspond to USD, as it is claimed and there might be some kind of a backlash there.

Moreover, this makes Tether a centralized currency and most users cannot verify the way Tether really functions, despite the fact that this currency uses a public blockchain.

Both pros and cons of Tether have the same nature: Tether tries to turn coins into a USD substitution, ignoring the main principle of crypto world – decentralization, and this procedure is being wrapped into something beneficial and innovative. Of course, despite this suspicions, Tether is still an interesting project.

The story of Tether and some interesting facts to consider

According to The New York Times, Tether tokens are produced by a company called Tether Limited, which is situated in the British Virgin Islands. The company’s website claims that it is registered in Hong Kong.

The management team behind Tether mostly consists of the same people that run Bitfinex, one of the largest exchange platforms in the world. For instance, Jan Ludovicus van der Velde works as CEO in both companies and so does a chief strategy officer, Philip Potter.

The company behind Tether claims to have a fiat reserve to coins at one-to-one ratio, so if an investor provides dollars, he gets tokens instead. Thus, dollars are in the reserve, while tokens circulate. Company owners claim that they have enough dollars in the reserve to cover all tethers ever issued.

Indeed, crypto enthusiasts have been working on creating a stable digital currency from the very beginning. They did a lot of good efforts, but nobody was successful enough. We believe, that Tether’s developers went really far in their idea to create a stable coin that doesn’t suffer from the market fluctuations too much. Today Tether is the most recognized and popular project of this kind.

Traders can find Tether on the best cryptocurrency exchanges and trading websites and this currency has a lot of fans, despite the concerns we have described above.

Conclusion

There is a number of controversies around Tether and most of them are real. However, you don’t have to run to the conspiracy theories up to the hilt. In some cases, Tether might be a good idea for short-time investments. Tether’s advanced technology has significant pluses, like stability as if it was a digital dollar equivalent. Moreover, the fact that it remains a currency, backed by cryptography, makes Tether an efficient tool for financial speculations. As a stable element on the most unstable market, Tether is a noteworthy currency for sure.