What is Tether? A Beginner's Guide to the Stablecoin

Emerging cryptocurrency gathered all attention in all markets, investors who toke Dollar for granted started to see a new opportunity, a safe place to store value. There are a huge number of cryptocurrency in the market and the list is growing every day. Although not everyone is willing to risk and enter a digital industry which is new and full of unknown. Crypto market is so volatile as cryptocurrencies are not backed by a tangible asset. Dollar have gold’s support for so long so as every other fiat currency in the world.

There are investors who always prefer safety over innovation. For those who adore cryptocurrency characteristics but are too afraid to get involve, stablecoins are perfect and Tether is the king of them.

What are stablecoins?

As we said, dollar is backed with gold and the value is determined. But the same rule did not apply to cryptocurrencies in general till the emergence of stablecoins.

Stablecoins are like dollar, they borrow value of another asset. Stablecoins are pegged to fiat currencies.

Centralized companies seizing the moment and wanting to be a part of the new market, introduce stablecoins. Some investors prefer to walk on the border of digital and actual world. They use stablecoins and cryptocurrency that is backed by a fiat currency without actually buying or selling fiat.

What is Tether?

Tether is the most popular stablecoin in the market that is backed by Us dollar. For every Tether or USDT in the market there is 1 dollar in reserve. One tether is always equal to one dollar, so one might call it a crypto dollar. It has many advantages as:

• Tether ensures stable value because it is backed by dollar.
• It reduce the gap between digital assets and fiat currencies.
• The fee is low to ensure stability and transparency.

Who invented Tether?

USDT was issued by The Tether Holding LTD a centralized company located in the British Virgin Islands and Hong Kong. JL Van Der Velde is the CEO and Giancarlo Devasini is the CFO of the company. The general counsel of the company is Suart Hoegner.

How does Tether work?

Tether network is similar to any other cryptocurrency, it has a native token called USDT. Despite the dramatic price volatility in other cryptocurrencies, USDT is stable.

In the beginning, Tether was issued on the Bitcoin blockchain, but now it supports Ethereum, Algorand, OMG network and EOS blockchain as well. Tether support other stablecoins such as EURT, XAUT and CNHT as well.

Tether was build using a protocol called the Omni layer. The omni layer is a meta-blockchain of Bitcoin that provide perfect infrastructure for creating and trading new currencies.

It was introduced in 2015 on Bitcoin blockchain and transferred to the omni layer in 2017. The Omni layer is an open source program allowing the issuance of Tether.

Tether tries to keep a value peg to dollar or euro. But how does that work? In order to keep a fix value, Tether needs to store equal actual dollar in reserve so that crypto has the same value as dollar.

Why investors use Tether?

Cryptocurrency is a volatile market with unpredictable price movements, having a crypto that is free of fluctuation is a gif arrived in the form of Tether.

Many uses Tether just to get rid of the banking system with their high fee and low speed. Tether helps you to transfer money in a much safer and faster network that will charge lower fees.

Investors use it to trade on cryptocurrency exchanges. In Tabdeal you will find Tether in trading pairs which allows you to buy any crypto using a token that backed by US dollar.

Blockchain is not just famous for Bitcoin or other cryptocurrencies, it is adorable due to its fabulous features. It is home to innovate and trade. Investor found blockchain interesting on its own as a medium that omit banks and traditional intermediaries. Today not every person on blockchain is trading cryptocurrencies, they are using the infrastructure so that they can use traditional currencies on a better network.

Tether advantages

As an individual you can benefit from Tether in many ways. It is easily accessible that provides you with high-speed transfers with reduced transaction fees. The volatility is as less as zero.

For a merchant Tether is a perfect payment system with enough liquidity, reliable stability and smart options that do not exist in fiat gateways.

Tether became the most traded asset with high trading volume and multiple blockchain support. High-speed transaction enables exchanges to charge less fees.

Where to store Tether?

Just like ay other cryptocurrency you need a wallet to store your USDTs and investors have different considerations when it comes to choosing a wallet. There are hot and cold wallet available for Tether you can choose. Ledger and Trezor are familiar names in the market providing secure options.

Coinomi, Exodus and the web interface of Tether are other places to keep USDT safe and secure.

You can also store your cryptos on a built-in wallet of an exchange. In this case you will have instant access to market so you can enter and exit a sell or buy position quickly.

How to buy Tether?

Check out Tabdeal’s list to see a long list of USDT trading pairs. Tether market is huge and the best way to buy it is to exchange it in a cryptocurrency exchange. Different exchanges allow you to buy Tether using USDT/USD pair. You can also look for other currencies pair with Tether to exchange it with your local currency as well.

Tether filled all gaps

Many cannot ignore fiat and move completely to a world of wonders called cryptocurrency, they prefer to have a safe walk on the border to see what is new while holding on to what is important for them.

Tether is that bridge providing a safe trip to blockchain world, and appreciate the value of fiat currencies. For many it takes one trip to see how lifesaving blockchain is. It is enough to transfer some Tethers (US dollars) abroad and experience a new level of speed and functionality.

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