Tether is a token backed by actual fiat currency assets, including USD, Euros and, soon, Japanese Yen. One Tether equals one underlying unit of the currency backing it, e.g., the U.S. Dollar, and is backed 100% by actual assets in the Tether platform’s reserve account. Being anchored or “tethered” to real-world currency, Tether provides protection from the volatility of cryptocurrencies.
Tether enables businesses – including exchanges, wallets, payment processors, financial services and ATMs – to easily use fiat-backed tokens on blockchains. By leveraging Blockchain technology, Tether allows you to store, send and receive digital tokens person-to-person, globally, instantly, and securely for a fraction of the cost of alternatives.
Tether’s platform is built to be fully transparent at all times.
1. Establishment :
Tether currencies were created to handle three major issues:
- Support with national currency transfers
- Provide a stable Bitcoin,
- Provide another option for checking.
2. Value of Tether :
The idea was to create a stable cryptocurrency that can be used like digital dollars. Its value is the exchange rate is fixed or tethered, to the value of the US dollar. USDT can be spent, traded, or transferred, like Bitcoins or any cryptocurrency.
Tether is a token backed by actual fiat currency assets, including USD, Euros and, soon, Japanese Yen...
3. The features of Tether Trading:
If Tether is tied to fiat (national currency) and It has a few good points as follows :
- Transaction times –
- USD deposits and withdrawals often take 1-4 business days to complete in a traditional banking system. If a transaction has occurred at night or weekends when the bank is closed it could be longer.
- Tether transaction times take place in minutes which is an advantage of cryptocurrency traders who often want to rapidly trade in minutes not days.
- Transaction fees –
- SWIFT (Society for Worldwide International Financial Telecommunication) transfers are expensive at $20-$30+. Especially if you are using a fiat that is not supported by the exchange because you are then adding a fee for Forex conversion and a percentage on the transfer.
- Tether charges zero transaction fees between Tether wallets
- Price Stability –
- Cryptocurrencies are volatile when you want to purchase them buy with Tether, not another currency. Currencies are not stable enough as assets.
- Many exchanges do not take fiat but will take Tether.
- Sidelining –
- Taking no position while something is going on. “Cashing out” and waiting for another opportunity or the market timing to be right. Be ready with your Tether. No need to risk and leave money on exchanges.
check USDT : https://omniexplorer.info/