USDT

Overview of USDT

Tether (USDT) is a type of cryptocurrency that is known as a stablecoin. It was founded in 2014 by Brock Pierce, Craig Sellars, and Reeve Collins. USDT aims to maintain a value of one US dollar per Tether coin, providing stability in the otherwise volatile cryptocurrency market. Tether operates on several different blockchains, including Ethereum, where it is implemented as an ERC20 token. This means it can be stored in any wallet that supports ERC20 tokens such as Metamask or MyEtherWallet. It is primarily used to facilitate value transfers between different exchanges, such as Binance, Bitfinex, Poloniex, Kraken, and Huobi, among others.

Pros and Cons

What makes USDT unique？

Tether (USDT) introduced a significant innovation to the world of cryptocurrencies through the concept of “stablecoins.” Unlike most cryptocurrencies, which are highly volatile, Tether's value is tied to the US Dollar, aiming to maintain a 1:1 ratio. This aims to provide stability, reducing the risk of drastic price fluctuations that are common in other cryptocurrencies.

This stability allows USDT to serve as a kind of “digital dollar” within the crypto ecosystem: a cryptocurrency with the price stability of traditional fiat currency. This is particularly beneficial in trading, where it's used to quickly move stable value between different platforms without needing to convert to fiat currency.

Another unique element of Tether is its widespread integration across multiple blockchain platforms, including Bitcoin, Ethereum, EOS, Tron, Algorand, and more. This cross-chain compatibility allows it to plug into many different ecosystems, contributing to its wide accessibility and use.

How Does USDT Work？

Tether (USDT) operates on a different principle compared to cryptocurrencies like Bitcoin. Being a stablecoin, the creation and destruction of USDT isn't driven by a conventional mining process.

Instead, USDT tokens are issued against a reserve of fiat currency (usually US dollars) held by the Tether Ltd. This implies that new USDT tokens are created when users deposit corresponding fiat currency into Tether's reserves, and the tokens are destroyed or 'burned' when that fiat currency is withdrawn.

This issuance model means there's no need for traditional mining software or mining equipment to create new USDT tokens. Nor is there a predefined speed at which the tokens are mined because the supply is not algorithm-driven, unlike Bitcoin. Instead, the supply of Tether fluctuates based on its use as a stable transfer of value between different cryptocurrency exchanges and platforms.

In terms of transaction processing time, Tether is generally faster than Bitcoin because it operates on several blockchains, including Bitcoin's Omni Layer, Ethereum, Tron, EOS, and others. The transaction speed varies depending on the blockchain network used, but it's generally faster due to the higher scalability of these platforms compared to Bitcoin's base layer, which is limited in its transaction throughput.

Exchanges to Buy USDT

Numerous cryptocurrency exchanges support the buying, selling, and trading of Tether (USDT). Some of the most notable ones include:

1. Binance: Known for its substantial volume and variety of cryptocurrency pairs. It provides options for direct purchase of USDT with fiat currencies or exchange from other cryptocurrencies.

2. Bitfinex: An exchange closely linked to Tether as they share common management. It supports direct buying of USDT as well as trading pairs with other prominent cryptocurrencies.

3. Poloniex: Offers various USDT trading pairs and has strong support for Tether.

4. Kraken: A reputable exchange that provides the option to directly purchase USDT using common fiat currencies like USD and EUR.

5. Huobi: Based in Singapore, Huobi offers a variety of trading pairs with USDT and also allows direct purchase of Tether.

How to Store USDT？

USDT can be stored in any digital wallet that supports the specific blockchain protocols on which it operates. Since Tether is implemented on multiple blockchains, like Bitcoin's Omni Layer, Ethereum (as an ERC20 token), Tron, EOS, and others, the storage choices are diverse. Here are a few examples:

Desktop Wallets: These are installed on a desktop computer and offer complete control over your assets. An example is the Omni Wallet, which is a web-based platform designed for storing digital assets, including USDT.

Hardware Wallets: These store a user's private keys on a hardware device like a USB. They are considered very secure since they are immune to computer viruses and your coins are stored offline. Ledger Nano S and Trezor are examples of hardware wallets that support USDT.

Should You Buy USDT？

USDT is suitable for a wide range of cryptocurrency users due to its stable nature and flexibility. Here are a few categories of users who might find it suitable:

1. Traders: Those involved in frequent trading often need stability to protect their assets against volatile market conditions. Since USDT is pegged to the value of the US dollar, it can serve as a stable store of value amidst market turbulence.

2. Cross-platform Users: Individuals who want to move funds between exchanges quickly and efficiently can use USDT as a medium of transfer.

3. ICO Investors: Initial Coin Offering (ICO) participants often need to use stablecoins like USDT to participate in token sales.

4. Blockchain Developers: Those building on blockchains and need stable digital currency for dApp operations can consider using USDT.