Tether Coin (USDT)

Tether is a cryptocurrency that acts as a link between fiat and digital currencies. Tether tokens are all backed by a single dollar. The Omni Layer Protocol allows Tether to exist on the Bitcoin Blockchain. Tether Ltd is the company's owner.

There aren't many cryptocurrencies that aim to act as a bridge between fiat and virtual currencies, but Tether is one of the most popular of those that do exist.

What is Tether?

Tether (USDT) is a cryptocurrency whose value is equal to one US dollar for each token issued. To put it another way, each Tether token is backed by a single US dollar. Tether Limited, the company behind the Tether cryptocurrency, holds the traditional currency in 1:1 ratio in their reserves to ensure that each Tether token is tethered to $1. As a result, they will be able to easily meet their customers' withdrawal requests without running out of cash.

This feature is required for Tether to function properly. As a result, every Tether bought can be redeemed through Tether Limited. This does, however, imply that each Tether token is a liability for the company.

Tether is a cryptocurrency that exists on the Bitcoin Blockchain thanks to the Omni Layer Protocol. This protocol has essentially allowed the US Dollar to exist on blockchain in the form of Tether, without the volatility that traditional cryptocurrencies suffer from. Tether is completely decoupled from market forces in layman's terms. This also means that this ‘pseudo' dollar can now take advantage of all the benefits that come with having a decentralised, traditional currency on blockchain.

Some of these advantages are:

• It is possible to transact in USD without the use of an intermediary when using Tether.

• Tether can also be used to store USD safely using private keys.

• Tether can be used to price goods instead of Bitcoin or other cryptocurrencies, saving merchants a lot of money on fees and conversion rates.

• It's also easier to buy virtual currencies on exchanges because it allows users to quickly and cheaply move fiat in and out of exchanges.

Tether Limited is the only entity that can add or remove Tethers from circulation. Tether Limited distributes the equivalent amount of Tether tokens for each fiat cureposited with the company. If you deposit $100 into Tether Limited's account, for example, the company will give you 100 Tether tokens, which are equivalent to 100 USDT. These Tether tokens can then be traded, stored, or transferred.

When a Tether holder wants to redeem his or her Tethers, all he or she has to do is deposit them with Tether Limited, which will then destroy the Tethers and deposit the appropriate fiat currency into the user's bank account.

Tether Limited has expressed interest in backing its cryptocurrency with the Yen and the Euro, despite the fact that its primary focus is on mirroring the US Dollar.

The Tether system works as long as the company has sufficient funds in its reserves to back its cryptocurrency, as previously stated. Tether, like any other digital currency, will be subject to extreme volatility if it does not have this backing. As a result, the company issues Proof of Funds/Proof of Reserves updates on a regular basis. However, there are some risks and issues with this system of proof, which are discussed in more detail in the following section.

Where to buy Tether (USDT)?

In order to buy Tether, you will first need to buy Bitcoin or Ether and then transfer the same to an exchange that supports USDT. Some of the leading cryptocurrency exchanges that support Tether are Bitfinex, KuCoin, Gemini, etc.

Tether Wallets

A hardware wallet, such as the Nano Ledger S or Trezor, is the best place to keep USDT. Tether's official website may also provide wallet services for customers to store USDT.

Tether Mining

The cryptocurrency Tether (USDT) cannot be mined. Tether Limited or cryptocurrency exchanges that support Tether are the only places to buy them.