Maintaining a source of income in volatile currencies from the crypto market can compromise your liquidity and make you work at a loss, especially if the cryptocurrency in which you have invested begins to fall.
From this need, the USDT stablecoin was born, a cryptocurrency created with the intention that its owners could maintain their purchasing power. However, this token is also slightly inflationary, just to the point of encouraging its owners to use it instead of keeping it stored.
Initially Tether was launched on the Bitcoin blockchain. Subsequently, it went on to use the Omni Layer Protocol (an open source software) but it remains anchored to Bitcoin. USDT is issued by Tether Limited, based in Hong Kong. Tether Limited operates on the Omni protocol as a token issued on its network.
The Omni network will find other tokens, however, more than 90% of the transactions are from USDT. And it is, without a doubt, the most popular stablecoin in the world, occupying the privileged position 7 of the cryptocurrency market capitalization ranking. In some cryptocurrency exchanges like Bitfinex and Poloniex it acts as a replacement for the dollar.
The fact that its price is equivalent to the dollar means that for each token issued there is an equal amount in dollars as a reserve.
In short, USDT is a currency with a fixed price, it remains fixed to the US dollar, the euro and the yen. This makes its daily use for any type of payment or transaction accepted by both parties.
One dollar token – The best way to save USD in crypto
What makes Tether so special is that 1 USDT is equal to 1 USD (US dollar). If you have 1,000 USDT in your possession you have 1,000 dollars, with the advantage that you can keep them in a secure wallet, just as you keep any other cryptocurrency and dispense with banks. For traders it is also very useful since USDT allows them to trade without worrying about volatility.
Previously there have been cases in which some companies started accepting BTC and when the price began to fall quickly they blocked this option. It is easy to understand that a seller is afraid of accepting bitcoins or other cryptocurrency for a good or service and that this is subsequently worthless. Well, your expenses will have to be paid in the same way.
This situation has prevented the widespread adoption of cryptocurrencies worldwide. Although it is a debatable issue, the US dollar is the most stable currency in the world. So USDT seems to have chosen a good backup.
There are different reasons why USDT is recognized as one of the most successful stablecoins in the market to date. In order to decide on the reliability of this cryptocurrency, it is necessary to know these factors.
- Easy to exchange
Tether facilitates the exchange between real cash and cryptocurrencies, all this thanks to blockchain technology. In addition, it is faster to acquire any other cryptocurrency with USDT than with fiat currencies.
- Acceptance levels in the community
Tether is accepted in a large number of trading platforms colloquially known as “cryptocurrency exchange.” Some of these platforms even, when they could not accept US dollars, used USDT instead.
Tether blockchain technology brings world class security to the network, while complying with international compliance standards and regulations.
Tether’s main objective
Tether aims to provide liquidity and be a refuge from fleeing market volatility. Thanks to your reserve in fiat money you should not lose value or be volatile as are other cryptocurrencies.
Investing in currencies such as USDT carries a much lower risk than investing in others such as BTC, ETH, or LTC for example. In addition, your reserve in USD guarantees your stability in the crypto investment market.
Without a doubt, it is one of the most important cryptocurrencies today. There are thousands who would like to be in their place in the market capitalization ranking, such as number 7. Currently, their market capitalization is $4,020,426,766.
The total supply of this currency is set at 4,095,057,493 USDT, of which 4,039,892,173 USDT are already in circulation.
The highest price it has managed to reach was $ 1.21 on May 27, 2017, a few months after having its lowest price at $0.84 on February 2, 2017.
Although cryptocurrencies can be bought and sold by sending them directly to the beneficiary’s address, finding someone willing to acquire the exact amount of the cryptocurrency we want to sell is not always easy. However, there are specialized platforms that make this process really simple, cryptocurrency exchanges.
Luckily for those who are interested in buying the cryptocurrency, it is in a large exchange number. Among them Binance, Coinbasel, OKEx, among many others.