Tether (USDT) is a type of stablecoin that aims to maintain a stable value by pegging its price to a reserve of real-world assets, primarily the US dollar.
Main features
Tether was launched in October 2014. Initially started on the Bitcoin blockchain using the Omni Layer protocol. Since then, it has expanded to operate on multiple blockchains, including Ethereum (ERC-20), Tron (TRC-20), EOS, Algorand, Solana, and others, allowing for greater versatility and accessibility.
It is issued by a company called Tether Limited, which has faced scrutiny regarding its reserve practices and transparency.Tether was co-founded by Brock Pierce, Reeve Collins, and Craig Sellars.
Tether’s main feature is stability – it is pegged 1:1 to the US dollar, aiming to provide price stability in the often volatile cryptocurrency market.
USDT is widely accepted across numerous cryptocurrency exchanges, making it a key tool for traders to maintain liquidity and quickly move in and out of different cryptocurrencies.
Tether has made efforts to provide transparency regarding its reserves through – regular attestation reports is open for every user and you can find it in the official website.
Users can acquire USDT through exchanges or directly from Tether Limited, the company behind USDT. While Tether itself does not charge users a fee for transfers, exchanges may impose fees for buying, selling, or withdrawing USDT. Network fees may also apply depending on the blockchain used for transactions, influencing costs when moving USDT between wallets.To buy USDT with lowest price use search on Fiatom.io.
Tether issues new tokens when it receives an equivalent amount of fiat currency or other reserves. Similarly, users can redeem USDT for fiat currency, which leads to the token’s removal from circulation. Company claims that each USDT is backed by reserves, which include fiat currencies, cash equivalents, and other assets. However, the precise composition and auditing of these reserves have been subjects of scrutiny and debate within the cryptocurrency community.
How to bay USDT?
Buying USDT is probably the easiest one among cryptocurrencies. Almost every crypto-platform will offer you to buy USDT. These are the common steps:
- Choose a Exchange: Select a reputable exchange that supports USDT to your fiat currency trading pairs using aggregator service Fiatom
- Create an Account: Sign up for an account on your chosen exchange and complete the verification process.
- Deposit Funds: Use your bank account, credit card, or other payment methods to deposit funds into your exchange account. Exchanges may charge fees for deposits.
- Search for USDT: Look for the USDT trading pair (e.g., USDT/USD).
- Place an Order: Buy USDT at the current market price or place a limit order to purchase USDT at a specific price.
- Store Your USDT: You can store your USDT on the exchange or transfer it to a hardware wallet for added security.
In the conclusion we should mention that USDT is not the only coin that is pegged to a US dollar. Here are some popular alternatives to USDT:
- In the conclusion we should mention that USDT is not the only coin that is pegged to a US dollar. Here are some popular alternatives to USDT – a stablecoins backed by USD reserves:
- USDC (USD Coin) issued by Centre Consortium (a collaboration between Coinbase and Circle)
- BUSD (Binance USD) issued by Binance in partnership with Paxos. BUSD is regulated and approved by the New York State Department of Financial Services (NYDFS)
- PAX (Paxos Standard) issued by Paxos Trust Company is a regulated stablecoin with reserves held in FDIC-insured US banks or backed by US Treasuries
- TUSD (TrueUSD) issued by TrustToken is fully collateralized by US dollars and offers regular third-party attestations to ensure transparency and trust
- GUSD (Gemini Dollar) issued by Gemini Trust Company is regulated and backed by US dollar reserves held in a US bank.
- HUSD issued by Stable Universal in partnership with Paxos is also a stablecoin backed by USD reserves.
Remember, the cryptocurrency market is constantly evolving, so it’s always a good idea to stay informed and research different options before making any investment decisions.