What is USDT (TETHER)?
“Should we move to USDT?” Nowadays, we hear this particular question frequently. What is USDT, and why it confuses everyone. the main question is that what we have on our hands? dollars or a coin for exchange?
Contrary to popular belief USDT is not the US currency (dollar). It is a cryptocurreny and you can use it as money in coin Exchange sites.
USTD, Targets to keep the value of 1 dollar steady. This target differs it from other cryptocurrencies.
It is linked with the currency (eg 1 USD ₮ 1 = USD) and is 100% backed by real assets in our reserve account
There seems to be no depreciation. Yet, it is not exactly like that. We take some minor risks. In fact, it swings around 1 USD. At 1 USDT = 0.92 USD, 8% depreciation has also been seen. The opposite is also possible.
You can buy USDT by selling your Bitcoin or the other supported altcoins. Later on, we can buy these altcoins with the USDT without converting USTD to Bitcoin. It comes handy when you trade altcoins regularly. We can tell that USDT pretty solid system Still, we can’t say it is 100% safe and this article is not an investment advice.
Apart from this summary information, I would also like to share short information from their website.
How does Tether work?
Tethers exists on blockchains through the Omni Protocol. The Omni Protocol is open source software that interfaces with blockchains to allow for the issuance and redemption of cryptocurrency tokens, in our case, “tethers”.
Tether Platform currencies are 100% backed by actual fiat currency assets in our reserve account. Tethers are redeemable and exchangeable pursuant to Tether Limited’s terms of service. The conversion rate is 1 tether USD₮ equals 1 USD.
The Tether Platform is fully reserved when the sum of all tethers in circulation is greater than or equal to the balance of fiat currency held in our reserve. Through our Transparency page, anyone can view both of these numbers in near real-time.
For a more detailed technical explanation of how the Tether Platform works, please download the Tether white paper.
What real-world currencies does Tether support?
Tether initially supports US Dollars (USD), Euros (EUR), and soon Japanese Yen (JPY). Represented by ₮, tether platform currencies are denoted as USD₮, EUR₮, and JPY₮.
Who can use Tether?
Tether enables businesses – including exchanges, wallets, payment processors, financial services and ATMs – to easily use fiat currencies on blockchains. Some of the largest businesses in the digital currency ecosystem have integrated tether.
View industry supporters.
Individuals can also create a Tether wallet or use tether-enabled platforms to transact with tethers.
How does Tether protect me from cryptocurrency volatility?
Because they are anchored or ‘tethered’ to real-world currencies.
Tethers are new assets that move across blockchain just as easily as other digital currencies. Tether currencies are not money, but are digital tokens formatted to work on blockchains. Tethers hold their value at 1:1 to the underlying assets.
How do I know my Tether is secure?
Tether is built on top of the revolutionary and cryptographically secure open blockchain technology and adheres to strict security and global government laws and regulations.
All tethers are pegged at one-to-one with matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by actual assets in our reserve account. As a fully transparent company, we publish a real-time record of all value held and transferred in and out of our reserve account.
Tethers can be securely stored, sent and received across the blockchain and are redeemable for cash (the underlying asset) pursuant to Tether Limited’s terms of service.
Where can I use Tether?
Tether is currently in Beta. We want to make Tether usable everywhere where you can use digital currency and in many places where digital currencies is not currently accepted.
Is Tether transparent?
Yes. Tether’s platform is built to be fully transparent at all times and is regularly audited. Every tether is backed 100% by its original currency.
View more transparency information.
How much does Tether cost to use?
Tether has almost zero conversion fees, charges no commissions and offers top market exchange rates.
Sending between Tether.to wallets is always free.
When sending from your Tether.to wallet to an external tether-enabled wallet, we will absorb all Blockchain fees. Fees occurred when sending tethers outside of our wallet are outside our control.
View more fee information.
Do I have to go through the KYC process?
Going through our know your customer (KYC) form and approval process is required to issue and redeem USD₮, EUR₮, and soon JPY₮.
In what countries and states does Tether have limited functionality?
Tether is committed to operating in a secure and transparent way, while adhering to all government compliance and regulations.
For this reason Tether does not operate in countries and U.S. states that do not regulate virtual currencies. Users will not be able to access the Tether services from these locations and Tether will not be able to offer services to Residents of these locations.
Current countries with limited functionality:
Afghanistan, Bosnia and Herzegovina, Democratic People’s Republic of Korea, Ethiopia, Iran, Iraq, Lao People’s Democratic Republic, Syrian Arab Republic, Uganda, Vanuatu, Yemen.
Current U.S. states with limited functionality:
New York, Washington.
Please access tether through our exchange partners Bitfinex or Kraken, for now.