What do you mean by Tether(USDT)?
Token Thursday: Episode 2
It’s another Thursday, which means it’s time to talk Token! This week is about the most popular stable coin in the crypto world, TETHER. But before we get into all things USDT,
What is a Stable Coin?
A stable coin is a cryptocurrency whose value is tied to the value of another currency, commodity, or financial instrument. Stable coins aim to provide crypto users stability with their low volatile nature and are often used as the preferred medium of exchange in crypto transactions. Namely, there are three types of stable coins, those collateralised by fiat, crypto or algorithms. In this article, we are here to explain the most popular fiat-collateralized Tether known as USDT.
What is Tether (USDT)?
Tether (USDT) is a cryptocurrency stable coin pegged to the U.S. dollar designed to avoid the market volatility that drastically impacts the value of other cryptocurrencies, such as Bitcoin. In fact, it is the 3rd largest cryptocurrency to exist in the crypto market with the biggest stable coin market cap.
For those in the crypto industry, USDT serves as a “safe” digital asset that maintains its stable $1value over time due to its fiat pegged nature.
How does it keep it $1 Peg?
As per the Tether website, the project boasts an impressive reserve of fiat currencies equivalent to the amount of USDT available in the market, therefore, always ensuring that 1-to-1 exchange supply. It also needs to be noted that Tether is pegged to other fiat assets like Euro, Chinese Yuan, Mexican Peso and Gold, all of which are backed by their Tether Reserves.
- Less market volatility: Due to its matching 1-to-1 fiat nature, USDT does not suffer the same market volatility that other cryptocurrencies face like Bitcoin and Ethereum.
- Fiat backed digital asset: Based on their claims, the USDT Reserve is a highly liquid fund that holds assets equal to the entire outstanding market value of USDTs.This means it has one dollar of cash or liquid investments for every USDT in circulation.
- Multi-Blockchain compliant: USDT is a unique stable coin which complies with multiple blockchain networks and protocols. Some of the blockchains it supports are Ethereum, Bitcoin Cash, Solana, Algorand, Liquid Protocol, Omni, Tron etc.
Where can you trade USDT?
Being the 3rd largest cryptocurrency in the world, USDT is available on many exchanges. If you are looking to trade USDT, simply head on over to DIFX and log in or create a new account to start trading the multiple USDT pairs available on the exchange.
DIFX is a CEX that uses blockchain technology to incorporate centralized finance. It is an easy-to-use platform for both new and experienced traders, establishments, and investors. Additionally, the company hopes to increase the use of digital currencies for direct settlement between beneficiary and payer by eliminating intermediaries. To begin your journey with Endless Possibilities, download the app now from the iOS or Google Play Store, or visit us at difx.com