What is Tether (USD₮) and how does it work?
Tether (USD₮) Review
Official website: https://tether.to/
Tether is a cryptocurrency, the value of which is connected with the value of the U.S. dollar. The main idea behind the Tether — to create a stable cryptocurrency (stable coins), with low value fluctuation possibility, unlike many other cryptocurrencies (large value fluctuation). However, in practice, the Tether price tends to fluctuate a little.
Tether, Like other cryptocurrencies uses blockchain.
Creators & Location
USDT is designed by Tether Limited. This company is located in the British Virgin Islands referring on information from the New York Times. The available information in Tether’s website says it is incorporated in Hong Kong, with offices in Switzerland.
– Fixed value (1 USDT is equal to 1 USD);
– Transaction fee between Tether users 0%;
– Fast transactions (normally a few minutes);
– Free wallet;
– Just like many other payment systems Tether offers API support.
Many cryptocurrency exchanges offer USDT as a trading pair, which gives opportunity to buy the coins the value of which is equal to USD. That can help for traders (especially if Bitcoin’s value is volatile). On the other hand, the Tether value in connection with USD gives a centralized nature for this coin. But as we know, the cryptocurrency was created with the aim to be decentralized.
Anyway, Tether’s centralized nature doesn’t make it bad automatically. It is just a little different type of coin, for example, something more to Ripple category than Bitcoin.