What Is Tether?

As the first and most popular stablecoin, Tether (USDT) has played an important role in the growth and adoption of cryptocurrencies. This article will take a deeper look at Tether, including its history, how it works, its advantages and disadvantages, and how to buy it.

What is Tether?

Tether (USDT) is a crypto asset that is pegged to the value of the US dollar. This means that the USDT value is designed to always be equal to 1 USD. This makes Tether a stablecoin , meaning its value is relatively stable compared to other cryptocurrencies known for their volatility .

USDT Issuer

Tether's issuer is Tether Limited, a company based in Hong Kong. The company was founded in 2014 by JL van der Velde, Brock Pierce, and Reeve Collins.

Tether Limited claims that USDT is backed by USD reserves, but this is still doubted by some parties.

How Tether Works

Tether works by issuing USDT tokens on the blockchain. Each USDT token is intended to represent one US dollar.

Tether Limited, the company behind Tether, claims that it has US dollar reserves equivalent to the amount of USDT in circulation. This is intended to ensure that the USDT value always equals $1 USD.

Advantages and Disadvantages of Tether

Profit

• Stability: The value of USDT is relatively stable compared to other cryptocurrencies, making it an attractive choice for investors who want to avoid the volatility of the crypto market.
• Ease of Use: USDT can be easily used to buy and sell other cryptocurrencies, as well as to make payments and transfer funds.
• Accessibility:  USDT is available on various cryptocurrency exchanges and trading platforms.

Lack

• Linkage to the US Dollar: The value of USDT is dependent on the value of the US dollar, which means that USDT can be affected by US monetary and economic policies.
• Concerns about Transparency: Tether Limited has been criticized for a lack of transparency about the US dollar reserves they hold.
• Potential Market Manipulation: There are concerns that USDT could be used to manipulate cryptocurrency markets.

How to Buy Tether

Tether can be purchased on various cryptocurrency exchanges, such as Bittime. Here are the general steps for buying Tether:

• Create an account on a crypto exchange.
• Verify your account.
• Deposit funds into your account.
• Select the trading pair you want to use, such as IDR/USDT.
• Enter the amount of Tether you want to buy.
• Confirm your purchase.

Complete details on how to buy Tether (USDT) can be seen here. 

Conclusion

USDT is the right choice for investors who want stability and ease of access in the world of cryptocurrency. However, it is important to always do your research and understand the risks before investing.

Also read:

What is OTC?

What are IOUs?

What is FUD?

What is KYC?

DISCLAIMER:  This article is informative and does not constitute an offer or solicitation to sell or buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in crypto asset exchange rate fluctuations.