The basics of crypto trading
Tether – one of the most sustainable cryptocurrencies in the world, whose exchange rate is pegged to US dollar. Quick and transparent transactions, the currency backing and high demand for it – all these can be said about USDT.
Tether – is the name of a company, a platform and a currency at the same time. The platform has been established for exchanging fiat money to digital currency. The idea was to peg the coin to US dollar (and later to euro) and back the exchange rate with real money.
The currency is based on the Bitcoin blockchain technology and secures fast and cheap performance of transactions in the system.
Today, the coin itself demonstrates enormous figures of the market capitalization and daily transaction volume. It is ranked number two after Bitcoin in the volume of daily operations – it exceeds 3.32 billion dollars.
Nowadays, Tether includes two stablecoins pegged to fiat currencies: USDT is pegged to US dollar and EURT – to euro. The conversion and exchange rates amount to 1:1. Due to the backing of the digital currency, its price remains almost at the same level of 0.96 – 1.02 dollars.
The platform has become popular among crypto investors and businessmen. If the former keep part of their savings in USDT, the latter actively use the coin to perform transactions with counterparties, clients, and customers. It is beneficial for them due to the high speed of transactions, the anonymity of the network and low fees.
There is an additional fee of 150 dollars for account verification. It cannot be returned but can be kept on the account.
The Tether platform appeared in mid-summer 2014. Then, it another name – Realcoin. The coin had the same name. The operating basis was the Bitcoin blockchain technology. The cryptocurrency was created on the Omni Layer platform.
Initially, the offered currency could not compete with altcoins, so the developers changed the name to Tether and the technology. As a result, they created a demanded stable coin that made it possible for ordinary people and entrepreneurs to work with digital money on the platform featuring a high level of cryptographic security. The coin is also secure due to the begging to the US dollar and its complete backing.
The idea of creating the coin belongs to the founder of Tether Stanley Hainsworth. Before that, he held a position of the Marketing Vice President at Starbucks. The developing team includes other creative people as well. Thus, when introducing the platform, special attention was paid to the creation of a mobile application with a wallet function.
In the beginning, the platform was to include one stablecoin – USDT. Today there is EURT, pegged and backed by the euro. In the near future, it is planned to introduce a digital analogue of the Japanese yen – JPYT.
On the Internet, there are mostly positive reviews about USDT and Tether Company in general. Crypto investors and entrepreneurs who work with the platform point out the following advantages of the digital currency:
Sometimes, negative reviews about the site can be found. Some people say that the idea of combining the functions of fiat and digital money destroys the idea of cryptocurrencies. The latest news related to the scandals around the platform has a negative impact on the company’s reputation and the exchange rate of the coin as well. They are accused both in a successful hacker attack and stealing more than $30 million from investors’ accounts and of money laundering and oversizing of the reserve fund.
The fact that USDT rate is pegged to the dollar and the coin is backed by it suggests that in the near future the coin price will remain sustainable (minor fluctuations around 0.05-0.06 dollars are possible). The currency has no prospects for growing against dollar. But against the background of the total recession among cryptocurrencies, Tether seems to be almost the most reliable one.
But not all analysts have such a positive opinion about USDT. Some of them draw attention to scalability problems that may significantly reduce transactions speed in the future. Various rumours about Tether increase the negative atmosphere. Scandals are related to the discrepancy between the actual size of the reserve fund and the published data. However, even after this the platform remains one of the most reliable providers of online payment services.
If the developers manage to cope with the rumours and continue publishing transparent information about the funds on the accounts, then the stablecoin has all the chances for a successful future. Now, the capitalization volume exceeds 1.86 billion dollars, and if the company manages to expand its functionality, this figure may increase several times.
Those who are not familiar with USDT yet may have questions regarding the purchase and storage of this stablecoin. It should be said from the beginning that the coins cannot be mined. The operation scheme of the network works in such a way that new coins are created when a user makes a deposit in his account. If the money is withdrawn to fiat, these coins are destroyed. Those who want to purchase Tether can do it in the following ways:
The coin can also be exchanged for Fiat on exchanges, exchangers and wallets. Moreover, some platforms offer to withdraw funds directly in dollars.