Tether (USDT) tokens have come a long way from being the first stablecoin to the most widely used and most traded token by volume. A group of bitcoin enthusiasts launched Tether in 2014. Tether tokens are a forerunner in the digital use of conventional currencies and a disruptor to the traditional financial system.
A stablecoin is a cryptocurrency whose value is tied to an external asset, such as gold and the US dollar, to maintain price stability.
Additionally, Tether also empowers and supports burgeoning initiatives in the blockchain ecosystem. USDT is the most widely used stablecoin on major exchanges and wallets.
In this article, we will examine the unique qualities of the Tether crypto that make it a safe haven for investors.
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How does Tether crypto work?
Tether tokens are digital currencies based on many major blockchains, including Solana, Algorand, Tron, Bitcoin Cash‘s Simple Ledger Protocol (SLP), Liquid Network, Ethereum, Omni, and EOS. USDT is traded and issued through these transport protocols, which are made up of open-source software that connects to blockchains.
Tether was formed with the intention of using the Bitcoin network, specifically Omni Layer, as a transport protocol. As the original version of Tether is based on the Bitcoin blockchain, it benefits from the inherent security and stability of the oldest blockchain network.
Additionally, Tether is the new transport layer created on the Ethereum blockchain as an ERC20 token. Now, Tether tokens can be found in Ethereum decentralized applications or smart contracts.
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What are the unique features of Tether cryptos?
- Tether ensures that the value of USDT stays tied to the US dollar, making it a one-of-a-kind crypto.
- Tether has made progress in allowing users to trade with traditional currencies across the entire blockchain without the difficulty or instability associated with digital currencies.
- Tether has modernized cross-border transactions across the entire blockchain network by being the first blockchain-enabled platform to facilitate the digital use of conventional currencies.
- The crypto market is risky and highly volatile, which means cryptos can fluctuate 40-50% in a single day. USDT, however, is immune to these price swings, making it a safe haven for investors.
- USDT facilitates the exchange of US dollars between countries via the blockchain. There is no need to rely on expensive and slow intermediaries like financial service providers or banks.
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Although Tether crypto is classified as a stablecoin, investors should exercise caution when investing in digital currencies as they come with a lot of risks and scammers are constantly waiting to steal your money.
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