TRON FAN CLUB| WHAT YOU NEED TO KNOW ABOUT TETHER USDT IN CRYPTOCURRENCY TRADING| BY @GIDSBROWN

Image edited on Canva

Good day everyone here I hope your day is going well and a Ramadan Mubarak to my Muslim friends here at steemit
I'm here to talk about the importance Tether USDT to cryptocurrency investors and traders. I hope you find value in this reading as you go through this article.

Source

Meaning of TETHER

Tether means to tie or fasten an object to another to restrain it's movement. In the case of cryptocurrency it means each tether coin is equivalent to one US dollar or any other alternate reserve currency there by making it a digital dollar. There by making it a stablecoin in the crypto market.

HISTORY OF TETHER USDT

In the year 2012 first of January a man named J.R willet proposed the idea of building new currencies on the Bitcoin protocol which then materialized into MASTER COIN which aimed to utilize a new second layer technology in the Bitcoin Blockchain which would become the technological foundation of tether cryptocurrency. In july of 2014 a few team members from the mastercoin project established their own start up called REALCOIN which aimed at enhancing the utility of dollar using the Bitcoin second layer technology renamed as OMNI LAYER PROTOCOL later REALCOIN was renamed to TETHER referencing it's ties to fiat currencies.

_{a screenshot from my trust wallet app}

HOW DOES TETHER WORK?

Tether besides being a stable coin is a very unique cryptocurrency which exist on several blockchains which are the OMNI BITCOIN PLATFORM, THE ETHEREUM ERC20 , EOS AND TRON. The difference between the four has to do with the properties inherent to the Blockchain hosting Tether. For instance, for maximum safety some investors maybe prefer the Bitcoin Omni version of Tether while others may prefer the ERC20 token version of Tether as seen in the uploaded image, as it can be used by investors on defi to get perceive income very few investors use the Tron network.

Tether Omni technology version consist of 3 layer stack

1. Tether Limited, is the business entity that manages fiat deposits and withdrawal from the Tether.

2. Omni, is used to create and destroy digital tether coin and it's also used to track and report the usdt in circulation. It is also used to send and store this token securely and unanimously.

3. The Bitcoin Blockchain: is the bottom layer that serve as a transactional ledger and runs the consensus algorithm.

In August 2019 the ERC20 version surpassed the Omni version and in October of the same year it surpassed the Omni version in market cap and never looked back since then. Today the ERC20 is the indisputable leader between the two.

_{a screenshot from my coingecko app}

THE IMPORTANCE OF TETHER USDT

Did you know that in December 2020 usdt was ranked as the fourth most important cryptocurrency behind Bitcoin, Ethereum and Ripples with a market cap of 20billion dollars?
And in the present day it has grown to be 3rd most important cryptocurrency in the crypto market with a market cap of over 83billion dollars.

TETHER helps you move your funds between different exchangers or in arbitrage trading Arbitrage trading is a type of trading in which an arbitrage trader seeks to buy an asset in one Market and immediately sells it in another market and almost immediately sells it in another market at the same time to make little profits which comes from the difference between the prices in the two markets.

In Nigeria where cryptocurrency traders and investors have been banned from using the bank directly for cryptocurrency transactions USDT has been a great help in peer to peer trading on binance and various exchangers to buy USDT since it has equivalent value to the fiat dollar currency and enable traders in Nigeria to carry out their cryptocurrency trading.

Tether USDT is considered the most liquid asset because it can most quickly and easily be converted into other assets and it is the largest stable coin.

It can also be used to save funds on exchangers as it is not affected by the volatility of the cryptocurrency Market because of its high liquidity (Liquidity is the ease with which an asset, or security can be converted without affecting its market price.

Tether also helps to trade other coins and retain your profit because tether is not volatile-as mentioned above-like other coins and it is also used in stopping losses.

a screenshot from my binance app

This indicates peer to peer trading because of the restrictions and ban of cryptocurrency trading in Nigeria.

a screenshot from my binance app

USDT paired to other coins for trading.

CONCLUSION

Tether USDT has other currencies aside USDT there is EURT which is pegged up with Euros, CNHT which is also pegged up Chinese yuan, and also XAUT Which is tied up with physical gold.

Thank you for going through this article.