Crypto Academy Homework Task Week 6 For Professor @yohan2on: ALL ABOUT TETHER (USDT).

in SteemitCryptoAcademy3 years ago

Hello everyone, its another week for the crypto academy homework task and i am so exited to answer this week6 task by @yohan2on. He always go out of his way to make sure he gives a well detailed and interesting lecture and i really appreciate you for that. So this post is all about Tether (USDT) but first i will be throwing a little light on Stablecoins.

What are Stablecoins?

Stablecoins are usually blockchain tools that their values are pegged at fiat currencies that is to outsife commodities. These coins has really added an undeniable valve to the market and because of its stability, it has helped reduce the volatility of cryptocurrencies in general. Investors need these stablecoins to be able to escape from bearish markets where they dont have to convert theirs funds back to fiat currencies.

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What Is Tether?

Tether serves a ton of purposes in the market, making it a very important cryptocurrency in so many investor's strategy. It is one of the most popular stablecoins in the world and has helped to generate a new class of stablecoins which even if its actually impossible to see a crypto market without Tether, it has overcome many controversies to make it to the top spot. However, Tether has helped to create a hedge against market volatility and provide liquidity and this has been achievable because its a stablecoin. Tether shares its value with the US dollar that is 1 USDT is equivenlent to $1 and this has helped people receive the $1 fiat currency from Tether at anytime they choose.

Traders and investors consider using Tether because of its scope of benefits extended from individual traders to an entire exchange and it has some key features that has made traders rely on it:

  • it is 100% backed and stable because each token is assign to a specific fiat currency and that makes the values stable all the time. This stability ensures a 1:1 ratio ie, 1USDT is always equivalent to $1.

  • Tether has a high level of transparency, it publishes a daily report showing the USDT in circulation and the corresponding reserves. This system has made a lot of traders feel safe and at ease with this cryptocurrency.

  • Tether is built on an open blockchain and technology and this has helped backed this cryptocurrency making it safe and transparent.

Why Tether is Important.

Tether has shown some level of importance and flexibility to investors in a way that it has served as a dollar replacement to so many popular exchanges and has dominated the market, the reasons bellow just says it all:

Exit strategy

  • Tether has shown some level of importance when it comes to Market volatility and this market volatility is a major problem when it concerns the crypto sector. Investors has fewer options when the bears starts taking over the market. First, they sell their holdings and change them to fiat which is a time-consuming process and involves paying more fees. Or they follow the bear market and get much losses, but when they convert to tether, they avoid these fees and volatility making it their best option.

Reduce friction

  • Tether is regarded as an asset to the blockchain in the sense that it is quite easy to convert from Bitcoin or any cryptocurrency to Tether and this conversion has shown to be frictionless to investors in a way that they avoid volatility and at the same time remain in the crypto market.

Remittance

  • As with most cryptocurrencies, Tether has the tendency of revolutionizing international transaction systems in a way that it can be sent to any part of the world without you needing to convert funds or even pay any extra transaction fees. So sending Tether is as easy as Bitcoin globally.

Accounting

  • Another major importance of using Tether as a method of payment is accountability. Since its inception of Bitcoin, there has been confusion surrounding its use as payment in terms of accounting. Businesses that get hold of goods or services with crypto are often left to estimate the worth of their payment against the US dollar. Stablecoins eliminate this concern because they always equal their fiat counterparts.

Transit Cryptocurrency

  • Importantly, Tether facilitates the transfer of real cash into digital cash. this is often a significant task in some regions of the globe. Remember in some locations it’s a difficult task to convert crypto into fiat currency. In some countries the practice is illegitimate. For all of those regions, Tether could be a smart alternative.

Acceptance

  • Tether enables exchanges with higher liquidity. This token helps exchanges to forgo dealing directly with fiat currency. during this way, helping exchanges reduce the number of KYC and AML regulations that are required by their platform.

How to buy and sell tether on binance.

  • First login to your binance app and click on the 'Market' to search for your favourite coin pairs.

  • Then type in the coin pairs you want, for me, i using my country currency (NGN) for the pair.

Screenshot_20210319-023328.png

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Step 1
  • Once you click on the coin pair you want, it directs you to the chart where you find the 'Buy' and 'Sell' icons.
  • To buy, click on the icon that says BUY, it directs you where you can input the amount of Tether you want to buy. Then click on 'BUY'.

Screenshot_20210319-022812.png

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Step 2.
  • Do the same for when you want to SELL Tether.
    Screenshot_20210319-023006.png

Special thanks to @steemcurator01 and @steemcurator02 for their wonderful support.

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hi @kinkyamiee

Thanks for attending the 6th -Crypto course and for your effort in doing the given homework task.

Feedback
This is good work. Well done with your research on Tether.

Homework task
8

Thank you sir.

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