People invest in cryptocurrencies for the same reason others invest in stocks, real estate, bonds, and more, hoping the value will rise and they can make a profit. Unlike fiat money, cryptocurrencies have a limited supply, making it difficult for government bodies to alter their value through inflation.
31% of people between 18 and 29 have used cryptocurrencies. However, with many available options, you may wonder which one you should pick. One of the more popular options is Tether, and below, we explore this cryptocurrency in more detail:
What is Tether?
Tether (USDT) is the largest, oldest, and most prominent stablecoin by market capitalization. The Hong Kong-registered company iFinex owns it, which also owns the crypto exchange BitFinex. Initially launched as Realcoin in July 2014, they rebranded the name to Tether in November 2014. It accounts for 53% of the total stablecoin market capitalization.
A stablecoin provides low-volatility digital assets that typically have a steady or stable valuation. Its value is pegged to stable investments such as U.S. dollars or gold, meaning it attempts to maintain the same weight as its peg. They do so by keeping the reserved sum equal in value to USD as it is to USDT in circulation. So, regardless of the market condition, you should always be able to trade 1 Tether for $1.
Tether also ties its value to other fiat currencies, such as the Euro (EURT), Chinese renminbi (CNHT), and Mexican pesos (MXNT). Tether tokens are digital Stablecoin assets that you can use as transaction currency on different platforms or leading blockchains, such as Bitcoin Cash Simple Ledger Protocol (SLP) or Avalanche.
Crypto traders use Tethers to provide reliable and steady liquidity for their cryptocurrency trades and to avoid facing unpredictable losses from unexpected or volatile price changes.
How Does it Work?
Tether’s 3-stack architecture layer forms the basis of how it works, with each layer having a unique purpose and working algorithm. It consists of:
- Blockchain technology, or the button layer, runs the consensus algorithm and works as a transactional ledger.
- The Omni layer protocol can create or destroy Tether digital coins. It also tracks and reports Tether tokens or coins in circulation and helps safely and anonymously transfer money.
- Tether Limited helps manage the Fiat deposits and withdrawals from Tether reserves. It helps address compliance with Tether’s web wallets and logistics. When you deposit fiat money to convert it to Tether coins, Tether Limited will generate digital money you can send, exchange, or store. Whenever you redeem the tokens for fiat money, the currency is destroyed.
If a user deposits $200 in the Tether reserve, then in a 1 USDT to USD ratio, you will receive 200 Tether tokens.
How to Buy Tether?
- Chose a Crypto Exchange
The first step is choosing a cryptocurrency exchange; an online platform that companies or entities host for users to sell and purchase cryptocurrency. Be careful of any fraud, scams, or hacking, and ensure a physical address is associated with the exchange.
Thoroughly research the company before making your account by checking what other users say and whether there have been security issues. You should also consider transaction fees; opt for lower per-transaction fee accounts if you plan to be highly active. For Tether, you can use INR deposits to purchase Tether tokens.
- Buy Tether Coins
After selecting your crypto exchange, you can make your opening deposit. Remember, while Tether is stablecoin and not as volatile as currencies like Bitcoin. It can still lose value because of government regulations, and the US dollar may not fully back it.
You can initiate a “Buy” transaction with your Tether’s ticket symbol (USDT) and the amount you want to buy and finalize your transaction. It can use your Tethers to buy different cryptocurrencies.
- Store Tethers
You can store your Tether in different crypto wallets, such as:
- Paper wallets: A piece of paper used in the cryptocurrency market with a scannable hardcore or QR code created by an app or a private and public key printed out. It allows you to store your Tethers offline. You can refer to this storage mode as noncustodial cold storage.
- Hardware wallets: A small plug-in device lets you store your Tethers offline. It is also a portable key that will enable you to access your Tethers safely from anywhere.
- Crypto Exchanges: Your crypto exchange often offers a built-in wallet for storing your Tethers.
- Software wallets: It is like a digital bank account for your cryptocurrency that you can install on your computer or mobile. The wallet generates a seed phrase (recovery seed) of randomly generated words you can use to prove ownership of your Tethers.
Tether is one of the most popular stablecoins available in the market, and in the highly volatile crypto market, it is a viable option for those looking to invest. Continue to research Tether and other crypto assets, ensure their security and transparency, and be aware of any scams and frauds coming your way; stay safe from any risks.
Disclaimer: Any information written in this press release or sponsored post does not constitute investment advice. Thecoinrepublic.com does not, and will not endorse any information on any company or individual on this page. Readers are encouraged to make their own research and make any actions based on their own findings and not from any content written in this press release or sponsored post. Thecoinrepublic.com is and will not be responsible for any damage or loss caused directly or indirectly by the use of any content, product, or service mentioned in this press release or sponsored post.