Crypto Academy Week 6 Homework Post for [@yohan2on]

md-raju (65)in SteemitCryptoAcademy • 3 years ago

Hello!!
My dear friends!
This is @md-raju from #Bangladesh 🇧🇩

Hope that all of you in well by the almighty creator. I am also well.We all know, . Recently Professor @yohan2on submitted his class lecture on Stable Coin. My dear steemian friends, today I am going to participate professor @yohan2on 's week-6 homework on Stable Coin.

Homework task: Write about any one of the following stable coins;

Tether(USDT)
Steem backed dollar(SBD)
DAI

Stable Coin

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A stablecoin is one kind of cryptocurrency whose price /value is compared or tied with an outside asset like gold, U.S dollar, for stabilizing price.Cryptocurrency like ethereum and bitcoin have chanced the face of business world by removing intermediaries. They have made investment easy. But these coins have some criticisms that price of these coins are not stable. price fluctuation rate is high. so people can't depend on it. People can't predict bitcoin's price. so market needed a stable coin like USDT which price is less volatile. Value of stable coin is tied with external things like U.S. dollar. Value of dollar change gradually day to day.
so we can sum up stable coin as......

It is a cryptocurrency.
It was emerged for the purpose of reducing volatility of price change.
Value of the coin is pegged with a physical material like us dollar, gold or another kinds of tradable material.
It achieves its price stability with collateralization or through algorithmic mechanisms of purchasing and selling reference.
It is more dependable than bitcoin.
Stable coins try to bridge gap between fiat currencies and cryptocurrencies.
USDT, USDC, BUSD etc.

Tether

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Tether is a cryptocurrency token issued by Tether limited. This company is incorporated in Hong Kong and its main office is in Switzerland. It is 14th most popular cryptocurrency and capital is $2.3 billion USD as of April 9, 2018.
Tether is also known as USDT. It is one popular kind of cryptocurrency. It is aslo a stable coin which value is tied with US dollar. This coin was emerged in 2014. It's price doesn’t fluctuate like bitcoin. Although price of USDT slightly rise or fall , most of the time it is equivalent to 1 dollar. Traders like this coin because of its stability. Tether was innovated for creating stable digital cash. It convert traditional cash into digital money .

Advantages of tether

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Transparency
Easy for non-technical users
Strong industry supporters and partners
Fiat Currency
Low Fees
Almost no Market Fear: This coin is secured one. There is nothing to worry.
Does not face significant price volatility
24 x 7 Customer Service: Tether's customers service is good. The company has a team of expect who help investors every 7day, 24 hours.
Reliable and Secure: Investors can rely on it because it is fully secured coin.
Easy integration

Disadvantages of tether

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Unclear Audits
Hiding important information.
Centralized, permissioned, and trust dependent
Lack of regular audit

Today's market

From today’s market price, we can see that price fluctuation is very little and it is (.22℅)

Flow of fund

Source

How to buy and store tether

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Buying Tether often requires a 2-step process. Most common approach is to purchase Bitcoin or Ethereum from exchange which receive deposits from a bank account or debit card or credit card.
Then, you have to transfer your currently bought cryptocurrencies to marketplace which sells USDT instead/ exchange for BTC or ETH.

After purchasing USDT, you may hold this in hot wallet. You may also keep it in cryptocurrency exchange which offers USDT like Binance, Poloniex, Kraken, Bittrex.