What is Tether?

USDT is a stable coin (stable-value cryptocurrency) that mirrors the price of the U.S. dollar, issued by a Hong Kong-based company, Tether. The token’s peg to the USD is achieved via maintaining a sum of dollars in reserves equal to the number of USDT in circulation.

A second-layer cryptocurrency token is build on top of Bitcoin’s blockchain through the use of the Omni platform. It later renamed to USTether, and then, finally, to USDT. In addition to Bitcoin, USDT is working on the Ethereum, EOS, Tron, Algorand, and OMG blockchains.

Purpose of USDT

• No third party – The purpose of USDT is to combine the cryptocurrencies that are exchanged between users without a third-party intermediary.
• Stable Coin – Tether converts fiat US Dollar into blockchain stable coins. It also expedites the transaction to other cryptocurrencies compared to using regular fiat currencies.
• Wide Acceptance – Tether acts as an alternative for deposit/withdrawal and has become a popular trading pair across major exchanges. The reason is that it provides ease of use in calculating profit and loss for traders. Moreover, the wide acceptance of Tether makes it convenient for users to move their USD holdings seamlessly between their wallets and exchanges.

Markets for USDT

If you want to find a secure place to exchange in USDT, then you must check the Binance market. The binance market is one of the safest, stable, and secure for transacting in any digital currency. Other than Binance, there many other markets for trading in Tether, and they are Binance, Huobi Global, OKEx, FTX, and MXC.COM, and more

Unique Feature

Tether provides a guarantee for the value of USDT and states that it is pegged to the U.S. dollar. According to Tether, whenever it issues new USDT tokens, it allocates the same amount of USD to its reserves, thus ensuring that USDT is fully stable.