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Tether cryptocurrency is one of the most discussed topics. It is worth understanding what USDT is in cryptocurrency if you are actively interested in crypto. This is one of the promising financial instruments in the cryptocurrency field. We will tell you what is special about USDT and why it is worth investing in it.
What is USDT in cryptocurrency in simple terms?
Tether USDT in cryptocurrency is the first stablecoin. Cryptocurrency is backed by fiat currency, that is, real money, and this is the difference between a stablecoin and a regular crypt. USDT is issued by Tether Limited, which is why it is called Tether. This virtual currency does not have high volatility like Bitcoin and other popular coins. It was created on the basis of the blockchain, supports several other cryptocurrencies, and the developer company regularly expands the list of its products.
Tether is backed by several fiat currencies, so the company’s stablecoins have different names:
- USDT – US dollar;
- JPYT – yen;
- EURT — euro;
- CNHT – yuan;
- XAUT – gold.
The USDT cryptocurrency is a coin whose exchange rate is backed by the dollar exchange rate. It is the most popular stablecoin.
- Tether can be called a universal cryptocurrency because it is used for different purposes. Its owners note many advantages of the coin:
- Price stability, resistance to volatility. The difference between the value of a stablecoin and the current dollar exchange rate is minimal, sometimes tenths.
- Anonymity. The coin allows users to conduct transactions anonymously without disclosing personal information.
- Reliability. This cryptocurrency is accepted by many exchangers around the world, it can be transferred to almost any currency, while using a favorable rate.
- Insurance. The coin is insured against risks by the real assets of the developer.
One of the main features and advantages of the Tether USDT cryptocurrency is its blockchain model. The company does not use the usual blockchain technology, so the owners of the coin can use the existing systems of other tokens to distribute it. One of the popular Tether protocols is TRC20 on the Tron decentralized network today. The platform takes a low commission and provides a high transaction speed.
Several algorithms are used for the operation of cryptocurrencies. For example, Proof of Solvency is a rule used to evaluate the solvency of a crypto. The performance of the cryptocurrency is supported by an algorithm called Proof-of-Work. The Tether coin uses the Proof of Reserves algorithm, and it has a number of advantages over the rest. This algorithm allows each user to analyze USDT with the help of tools in the blockchain itself, and see the real number of coins released into circulation. The dollars backing the USDT rate are held in real banks, and auditors periodically publish data on reserves in the public domain to confirm the safety and reliability of the coin.
Why to buy USDT?
The main advantage of the USDT stablecoin is the stability of the exchange rate, which is pegged to the US dollar. This feature allows you to use cryptocurrency to fix profits from trading or transfers, where the transfer amount does not change when the cryptocurrency exchange rate changes. Holders of stablecoins can use them for passive income, for example, staking coins on decentralized sites.
You can buy Tether on a cryptocurrency exchange, through an exchange, on a DeFi platform, by paying with another cryptocurrency. You need a wallet to store stablecoins, and you should choose it, paying attention to the degree of popularity and the level of security.
Some of the best options are Metamask, Trust Wallet, Ledger wallets. These are simple and convenient applications for working with cryptocurrency, which are used by both beginners and experienced traders.
You need to carefully monitor the market, be able to analyze it and recognize trends to make money on USDT, as well as on other cryptocurrencies. You can learn this on the Crypto Crew course and in our crypto community. Experienced mentors will help you understand what the USDT cryptocurrency is, teach you how to invest safely and profitably, and how to trade virtual assets effectively.