Tether is one of the first cryptocurrencies in the world that is pegged to fiat money, which is a definite advantage for many investors. For the first time, this name was given to the USDT stablecoin. After that, several other cryptocurrencies were released, which are pegged not only to the US dollar, but also to the Japanese yen, euro, and Chinese yuan.
The dollar token has become popular, so it is not difficult to buy usdt now. It is also important to understand that this asset is not equal to a real dollar. It is commonly used to facilitate digital transactions as well as facilitate trading in the cryptocurrency market. Tether is used for payments between users.
The difference between USDT and Bitcoin and other cryptocurrencies is that there are no hidden transactions in it – all transactions are provided by the fiat currency. Tether does not have Blockchain, and decentralized systems and technologies are used to implement transactions. You can buy cryptocurrency using simple money transfers through a card or an electronic wallet.
The operation of the protocol is maintained by open sources. You should pay attention to the following principles of the functioning of USDT:
- fiat money is used to confirm the solvency of a monetary instrument;
- the proof of reservation method is used in the case of this currency;
- cryptocurrency works on the principles of proof of the will and work;
- the total amount of tokens is checked when working with cryptocurrency;
- the total cost is determined by the available dollar reserves in users’ accounts.
The number and cost of available cryptocurrencies can be viewed on the official website of the developer to evaluate the possibility of buying a cryptocurrency.
Key Benefits of Cryptocurrency
The Tether cryptocurrency has gained popularity in certain circles. This can be explained by the following benefits of use:
- Transparency and simplicity of adjustment procedures. All transactions can be tracked in real-time. Account information is regularly updated.
- Efficiency of conducted transactions. Sending and receiving operations take a minimum of time.
- Low volatility. This is an important capitalization tool.
- Small commission. When performing transactions, you do not need to pay a large commission.
- Use of different Blockchain. You can use different wallets to transfer money.
- Protection against hacker attacks. The coin is protected from hackers.
Cryptocurrency Tether can work with fiat money. This allows you to exchange dollars for digital currencies much faster compared to bank transfers.