CRYPTO ACADEMY WEEK 6 HOMEWORK POST FOR [@yohan2on]||16-03-2021|Stable coins||

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Hello Steemians.Welcome again to the week 6 of the Steemit crypto lecture series.I appreciate Professor @yohan2on for making such a good lecture.Here is my homework entry.

STABLE COINS

Just as the name implies, a stable coin is a stable cryptocurrency whose price is fixed or tied to an external asset such as gold or dollar inorder to make the price stable.

A stable coin could be pegged to a fiat, cryptocurrency and other valuable commodities.

TETHER(USDT)
Tether(USDT) is a cryptocurrency whose price is tied to the US dollar.

Tether (USDT) is the world’s most popular stablecoin and the third most popular crypto after Bitcoin and Ethereum.

Unlike other cryptocurrencies, Tether is not affected by the swing in price.It has a stable value no matter the fall in price of other currencies and that accounts to why it is a means of storage of crypto and fiat(saving).

For example,there are times that the price of Bitcoin dropped so low such that holders of Bitcoin sell off their currency at a loss.

In practical terms....1 STEEM might give $1 today and tomorrow 1 STEEM might give $0.5...but with Tether(USDT)..1 Tether(USDT) still gives an average value of $1 anyday anytime.

My wallet showing Tether(USDT) at $1)

However,such case is NOT possible with Tether because it's value is tied to $1 dollar.Therefore (1USDT =$1) irrespective of any fall in value of other cryptocurrencies.

Tether cryptocurrency is issued by Tether Limited and it is also important to note that it operates on the Omni protocol as a token issued on the blockchain.

HOW DOES TETHER (USDT) REMAIN AT $1
Tether remaining at $1 happens because the Hong Kong based Tether limited reserves $1 for every USDT issued out.

Having known that Tether (USDT) is a means of storage as it is not affected by fall in value.Lets now see the advantages of Tether(USDT) over other cryptocurrencies.

ADVANTAGES OF TETHER (USDT) OVER OTHER CRYPTOCURRENCIES

•TRANSPARENCY
It is obvious that 1Tether equals $1 ....So there is a high level of transparency in the price unlike other cryptocurrencies that the price rises and falls against the dollar.

It is also worthy to note that the Tether limited has promised to manage coins reserve.

To further drive my point home as regards to transparency of Tether(USDT) is that it is pegged to the world currency (US $). There is no room for volatility.

•AS A DUAL CURRENCY
Other cryptocurrencies are just coins which can only be used as coins unless they are used to buy fiat.However Tether (USDT) doubles as both crypto coin and as Fiat.

•HIGHLY SECURE
Tether operates on the blockchain technology and so transactions are secured by crytography.

The Tether limited also has a Know your customer feature which makes it more secure.

•NON VOLATILITY
Tether(USDT) is not affected by fall in price just like other cryptocurrencies.So if one has,say( 20 Tether) which is worth $20 he can close his eyes without fear of the fall in value.

On the other hand, other cryptos is subject to fall in value.If one has say (40 steem) which is around $20...he might wake up and see that the 40 steem is now worth $15.

KEY FEATURES OF TETHER(USDT)

•Not affected by volatility

•It is pegged to the US dollar

•It has dual nature(cryto and fiat)

•As a fiat,it can be used to buy other cryptocurrencies

HOW TO BUY TETHER (USDT)

One can buy Tether through crypto exchanges using fiat or by swapping with other cryptocurrencies.

Swapping Tether(USDT) with Steem

Next

STEPS IN BUYING TETHER:

•Sign up to the exchange company of choice

•Verify your account

•Deposit fiat currency of choice say from debit card

•Use the fiat deposited to buy Tether

HOW TO SEND TETHER(USDT) ON ROQQU EXCHANGE

•Log on to ROQQU exchange https://roqqu.com/

•Click on USDT

•Click on send

•Enter the recievers wallet address

•Enter the amount of Tether

•Then proceed

The minimum amount to be transferred is 5 USDT

HOW TO RECEIVE TETHER (USDT) ON ROQQU EXCHANGE

•Log on to https://roqqu.com/

•Click on USDT

•Click on receive

•Copy your wallet address and send it to the user that wants to send USDT to you.

The minimum amount to receive is 10 USDT. Sending the wrong token leads to permanent loss.

CONCLUSION

Tether (USDT) as a stable coin is here to solve the problem of instability experienced with other cryptocurrencies such as BITCOIN.

Tether (USDT) has been made popular because of the fact that it has brought solution to the fall of other cryptocurrencies against the US dollar (world currency).Tether achieved this by integrating cryptocurrency(a blockchain technology) and fiat currencies.

Converting crytos to Tether means that one has been set free from the loss that may arise from fall of other cryptos.

Bitcoin can fall tomorrow but Tethercannot because it is pegged to $1.

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Thank you @yohan2on @steemcurator02