The Trendiest Stablecoin: All You Wanted to Know About Tether USDT
There are dozens of stablecoins on the market, but Tether (USDT) has been maintaining its leadership in terms of capitalization, trading volume, and media mentions for a few years already.
Tether is the number three (in terms of market cap) cryptocurrency and a favourite choice of countless traders and investors looking to save the value of their funds, avoid volatility, and abstain from selling crypto and buying fiat money.
The Basics
Tether USDT was introduced to the market in 2014 by crypto enthusiasts Brock Pierce, Reeve Collins, and Craig Sellars as the first stablecoin. Pegged to USD and originally called Realcoin, at first, USDT used Bitcoin’s blockchain for issuing tokens. Later, as the project grew, it expanded to Ethereum, EOS, Tron, Algorand, and OMG. Currently, the Ethereum ERC20 version remains the most popular, despite infamously high network fees.
The coin has surely gone through some ups and downs, including issues with volatility, lawsuits, and numerous rumours. Nevertheless, Tether USDT seems to disrupt all attacks and only keeps on getting stronger.
Operating Principles
The aim of every stablecoin is to provide stability, protecting the asset from seemingly inevitable crypto volatility. It can be achieved by pegging the coin to another asset or algorithmically. Tether USDT has chosen the most straightforward way possible by pegging its leading coin to USD.
The team behind Tether claimed that there is physical collateral in the form of fiat money and other assets for every coin issued. Although there has been some controversy regarding this statement in the past, currently Tether managed to settle all the cases.
USDT acts as an essential link between the worlds of cryptocurrency and fiat, allowing investors and traders to stay in the crypto space even when they want to secure the funds’ value. Although it doesn’t always provide one hundred percent stability and its rate fluctuates slightly, the currency is as close as it can get to relative stability.
Available on several blockchains, Tether USDT caters for various groups of users and enables fast money transfers between wallets and exchanges, including DEXes that often do not have fiat deposit functionality. On top of that, the USD peg makes USDT a good fit for Forex-like trading.
Moreover, there are three other variations of Tether: EURT pegged to EUR, CNHT pegged to Yuan, and a gold-pegged one.
Storing and Trading
Buying or trading Tether USDT won’t be a problem as nearly every cryptocurrency exchange, including HitBTC, have already listed the coin. Storing USDT is not an issue either – numerous custodial and non-custodial wallets support the digital currency.
However, before transferring USDT to any external address, make sure you’ve chosen the network correctly. Otherwise, the receiver won’t be able to see the assets. In case you’re new to the crypto space, storing your assets on the exchange before you figure out the basics will be the safest option.
Closing Thoughts
Stablecoins became an integral part of the cryptocurrency market, and Tether USDT is confidently leading the movement. It is a powerful tool that helps traders quickly access market stability without moving back to the fiat world. Despite the controversy surrounding the coin, it is one of the top three crypto assets in terms of market cap. Besides, USDT becomes even more popular during times of financial instability.
Сrypto wallet App
The HitBTC crypto wallet is a free and simple solution for beginners.
Fees and Limits update
We have recently updated our fees and limits. For the latest updates, please visit the fees and limits section on our website here.
HitBTC Mobile App
Don’t forget that you can trade on our platform from your mobile device. Start today by downloading the HitBTC App on Android and iOS.