What is Tether (USDT)?
Future of USDT Cryptocurrency and know how to buy USDT

What is Tether (USDT)?

#1 What is Tether?

A common issue faced by cryptocurrency traders is the pace of movement of funds. See a better rate on a different exchange for your favorite cryptocurrency? It’s going to take a while before you withdraw funds from your exchange and move to another.

See your coin’s price dropping? Want to sell it for another cryptocurrency? What if that one witnesses a price drop as well? That’s where Tether (USDT) comes in.

Tether: The Basics?

  1. Just like the name suggests, Tether is a controversial cryptocurrency that is allegedly tethered to unending trading disputes and dubious ownership. This digitized token claims to be supported by US dollars reserve, portraying a 1:1 relationship with the underlying fiat currency.
  2. This simply means that one Tether issued by the company has an equal value as of 1 dollar. However, the company has typically not able to produce conclusive evidence of their currency reserves, which has attracted a lot of negative attention from the markets and regulators alike.
  3. Initially named as "Realcoin", the Tether cryptocurrency enables you to facilitate the transfer of national currencies, use Tether as an alternative to other cryptos and offer a quick exchange to other cryptos. Also, it shares a complex relationship with Bitfinex, one of the largest cryptocurrency trading platform. In short, it has a history worth sharing in the world of cryptos.


(Source: The Bitcoin Magazine)

#2 - What are the benefits of Tether?

  1. According to the parent company, a Tether coin is a stable currency, where each unit of Tether is pegged to each unit of a standard currency like the US Dollar.
  2. Moreover, as per the website, it is 100% backed ie, 1 unit of Tether ( 1 USDT) is supported by 1 USD in reserves, against which they are issued.
  3. This tethering to the USD allows traders to quickly come in and out of their cryptocurrency holdings, which is faster than dealing with fiat currency, and especially more economical than dealing with other cryptocurrencies.
  4. For eg., if Bitcoin were to dip, a trader could quickly sell his Bitcoin holdings for USDT, which would retain their value, only to enter Bitcoin again at lower prices.
  5. This would not be possible if the trader exchanges his Bitcoins for another cryptocurrency - say Ethereum, which may also dip, along with the other cryptocurrencies in the market.
  6. This also allows traders to move funds across cryptocurrency exchanges without having to withdraw fiat currency and then deposit again in another exchanges, which takes significantly more time.
  7. The company also claims their business to be a transparent one with frequent professional audits, but other reports suggest that the company received subpoenas from the U.S. Commodity Futures Trading Commission for price manipulation.
  8. The Tether cryptocurrency is said to be built on the bitcoin blockchain via Omni Layer that strengthens its security and transparency.

 

#3 - How to buy and store Tether?

How to buy USDT

  1. Buying Tether is as easy as buying another cryptocurrency. With it supported as currency on most global exchanges, due to its acceptance and popularity, it is easy to pick up a USDT token across exchanges such as Binance, OKEx, Bittrex and more. It currently enjoys over 400 pairings across the exchanges it is listed on.
  1. Now since the price of Tether is stable at $1, one might see no advantage to picking one exchange over the other. But security is an important factor as well, which is why traders should consider CoinSwitch, largest cryptocurrency exchange, an exchange aggregator that allows you to buy USDT Tether from many major exchanges across the globe.
  1. CoinSwitch supports more than 140 coins and 45,000 pairs of cryptocurrencies. You can choose whichever pair you want with your token and compare the prices at exchanges. This way you can choose the best deal for you!
  1. With CoinSwitch, you do not rely on a separate wallet from the exchange to store your PIVX cryptocurrency. Instead, all transactions happen to and from your own personal private wallets, the benefits of which we’ve spoken about here earlier.

How to store Tether

Tether offers its own official standalone Tether wallet system for the storage of USDT coins. Alternatively, you can use Freewallet for Androids, and Omnicore desktop wallet for Windows and Linux systems.

 

#4 - What is the future of Tether?

  1. The Tether cryptocurrency is available in most of the exchange platforms, which makes it a widely available stable-currency that can actually expand much faster with the growing interest in cryptocurrency technologies.
  2. Plus, having a direct connection with fiat currencies, it can be a more popular choice since many of the crypto coins do not accept cryptocurrencies.
  3. Tether has remained nearly stable in its prices throughout its history, with the tiny fluctuations in value only being an indicator of the cryptocurrency market as a whole - a rise indicates people are selling out of cryptocurrencies, while a fall indicates that Tether is being sold for other cryptocurrency purchases.
  4. In January 2018, when the cryptocurrency market noticed a steady fall, USDT value rose to US$1.03, which indicated that most movement of funds happens towards Tether when the market is witnessing a negative sentiment and traders are selling cryptocurrencies.

Also Read: Complete Analysis of Tether | Live Tether (USDT) Price Charts And Predictions

 Price History

Date

Open

High

Low

Close

Volume

Market Cap

Jun 01, 2018

0.999088

1.01

0.994694

1.00

2,486,080,000

2,504,850,000

Apr 01, 2018

0.995702

1.01

0.980778

0.999810

1,832,530,000

2,277,310,000

Feb 01, 2018

0.991558

1.01

0.954771

0.986939

3,498,900,000

2,198,420,000

Dec 01, 2017

1.01

1.02

0.993043

1.01

749,396,000

769,516,000

Aug 01, 2017

1.00

1.02

0.988123

0.996819

170,045,000

320,388,000

Mar 01, 2017

0.999972

1.00

0.999939

0.999998

11,999,700

24,950,300

Oct 01, 2016

1.00

1.00

1.00

1.00

365,091

6,951,590

 

#5 - How is Tether different from other cryptos?

  1. The USP of Tether coins is its stability in terms of other cryptos. With it backed to USD, it’s value is largely stable at $1. This makes it a popular go to option when cashing out of cryptocurrencies temporarily when there’s a bear market.
  2. If their claims to have a reserve is true, then the company can transfer the entire profit to Tether coins to avoid price drops. Plus its convertibility between cryptocurrency and fiat currency makes it one of the most lucrative system.

 

#6 - Should you invest in Tether?

  1. Investing in Tether is currently one of the most debated questions amongst investors.
  2. A recent research published US investment bank Morgan Stanley in March 2018  indicated that trades between USDT and bitcoin have become regular supported by an estimated 14.2% of bitcoin trades paired against USDT, up from less than 1% in October 2017.
  3. However, the lack of transparency in USDT has recently made it unpopular. Fortunately, a recent third party audit (albiet by a law firm, and not an audit company) confirmed that Tether’s value is backed by legitimate USD reserves, putting to rest months of controversies. This should help rebuild some of the declining trust in Tether and help make it a standard for cryptocurrency exchanges globally.
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