What is Tether (USDT) and what are the Advantages of using it? (Updated)

What is Tether (USDT)?

Do You know What is Tether (USDT)? It is a cryptocurrency similar to the other cryptocurrency coins such as bitcoin, ripple, Ethereum, and many more. It is also promoted as the money built for the internet users. However, unlike the other coins whose price continually goes up and down the cost of Tether is somewhat stable. This feature helps tether stand out amongst the other currencies.

The creator of this coin claim that it is a cryptocurrency pegged to traditional fiat currencies and backed 1:1. Presently, the Tether is being supported only by the US dollar, and the symbol USDT denotes it. However, other countries such as England and Japan are all set to release their tether coins. The Japanese tether token is being named Japanese Yen (JPYT) will soon going to be released in the market. These token reserves are being promised to audit by the tether foundation. The primary goal of this token is to facilitate a fixed-rate transaction between the crypto exchange platforms.

According to Coinmarketcap data, Tether is the world’s 3rd highest market cap cryptocurrency in the world. This cryptocurrency has amassed 62.45 Billion dollars up till 29 June 2021. It goes on to prove that the popularity of the tether coin is steadily increasing.

Primarily the tether tokens are being issued by the tether limited.

History of Tether

It has been a known fact in the industry that Bitfinex and tether are associated with each other. In fact, some people go to the extent of claiming that Bitfinex has invested in the Tether. It was founded in November 2015. There is not much information related to the history of Tether available over the internet. There is still ambiguity over the inception of this technology and who created it. However, the tether coins are being issued and managed by Tether Limited which is regulated by the laws of the British Virgin Islands. The headquarter of this company is located in Hong Kong.

It is being speculated the CEO of Bitfinex Jan Ludovicus van der Velde has been involved in the price manipulation of bitcoin, as well as Tether.

Related Infographics: What The Crypto?

Advantageous of Tether

• Transparency
• Fiat Currency
• Almost no Market Fear
• 24 x 7 Customer Service
• Reliable and Secure

Nowadays, Tether is a widely popular cryptocurrency. Numerous reasons are drawing people toward this currency. It is considered to be the world’s top 15 cryptocurrencies. It goes on to prove the popularity of this fiat currency.

Transparency

One of the most important benefits of this tether coin is that it has brought much-needed clarity to the crypto world. Often people hesitate to invest in cryptocurrency because of the transparency issue. However, the advantage of the tether tokens is that the U.S dollar backs these coins. Moreover, the price of a symbol is equivalent to a 1 dollar which washes away all kinds of doubts in the buyer’s mind. He is well aware of the cost of the coins he is purchasing. Moreover, Tether limited has promised to control and manage the coins reserve now and then which is also increases the transparency. The company shares the detail of all coins in transactions publicly which reaffirms people’s belief in the cryptocurrency. This currency is tied to the actual world currency, so it is not volatile or is shielded against volatility

Fiat Currency

Unlike other coins where you have to use crypto coins to purchase and sell on the online world, however, in the case of Tether; since it is fiat currency so you can also use it in the electronic form as well which is a great thing.

Another benefit of the tether coins is that they use a bitcoin blockchain network that is already tested and secured rather than using a newly developed platform. Tether gives users a sense of security that their money is in safe hands. Since we know that blockchain is an extremely safe technology and it is immensely hard to break into this system. Thus, you need not be too anxious about your coins.

Almost no Market Fear

It is common to hear stories about us people getting sad and worried after investing their money in crypto coins. Since it is quite an uncertain industry and anything is possible on any given day, so you have to be careful while putting your money to purchase coins. However, in the case of the Tether, one need not be worried about the violent market situation. The value of the tether coin is already being fixed which is equivalent to 1 dollar (USDT). And the value of the coin will remain the same, and it won’t change whatever happens in the market.

The sole purpose of the tether coin is to preserve the currency and its value and use it to buy another cryptocurrency coin when necessary. Thus, it is one of the significant advantages of Tether. However, those who are looking to earn instant money or want to get rich in no time should avoid investing in the tether coin because profit is limited in this type of currency. Apparently, the price of this coin is pegged to the US dollar, and it could not go beyond the 1 dollar so you can’t make quick money from it.

Customer Service

The tether limited has hired a team of experts who will help you at every step. The 24X7 customer service is excellent and reasonable. However, as of now, they provide support only in the English language. Moreover, there is a small fee which you need to pay, but if you are transferring coins from one tether wallet to another, then you need not pay anything.

Reliable and Secure

The Tether works on the blockchain network that making it one of the most secure systems. Thus, while purchasing or selling coins on the network, you need not be worried about security. Moreover, the company also adheres to the KYC and AML guidelines which further solidify its security. Hence, every person who wants to have an account is required to provide their KYC and AML documents. In case, if you fail to do so, then it is impossible to trade on the platform. However, some experts consider it as a drawback.

Pawan Kashyap

I am Pawan Kashyap currently living in Amritsar. I always try to grab new things from the cryptocurrency market. From my observations and trends in the market, I always try to provide the best and accurate information in the form of articles from this blog. Follow us on Facebook, Instagram, and Twitter to join us.