With a variety of cryptocurrencies on the exchange, it is very difficult to make a choice, everyone chooses the direction at their own peril and risk. Tether is one of the many cryptocurrencies that has its own characteristics, advantages and disadvantages. This article will tell you in detail about this currency and make an attempt to forecast the prospects for its development.
This cryptocurrency cannot be called similar to other electronic means. Its main difference is the use of USDT currency, which is directly pegged to the dollar, i.e. the cost of 1 USDT is equal to the cost of 1 dollar. It turns out that the cryptocurrency exchange accepts payment in dollars. A feature of such trading is the price, which is slightly lower than on some fiat exchanges that accept this currency.
Tether is a crypto-fiat project, the prices of which depend on the value and rate of a certain currency, in this case the dollar. But Euro (EURT) and Japanese Yen (JPYT) are also available in this system. Despite the relative stability of the cryptocurrency, users are still affected by the jumps in the dollar to which the Tether wallet is tied (when the dollar (or euro) exchange rate rises or falls, the owners balance rises or falls).
The entire Tether system is based on 3 layers. The first level is the bitcoin blockchain, which includes the Tether transaction system. The second level is the protocol itself, which allows you to create or destroy currency, track the movement of finance and conduct possible transactions. The entire third level is given over to the Tether Limited program. Her duties include accepting real money from users, issuing cryptocurrency, monitoring reserves and drawing up public reports. In addition, Tether Limited provides support for the systems wallets and is engaged in cryptocurrency transfers to other resources.
The owner receives funds in cryptocurrency and uses it at his own discretion. If there is a request to withdraw money, the system destroys the tokens and pays "hard money" to the client.
The digital currency Tether was created in 2015 by Stanley Hainsworth, a former vice president of marketing at Starbucks. The first name of the cryptocurrency was Real Coin, it was developed on the basis of bitcoin using the "Omni Layer" protocol. A few years later, the development team decided to move to the more innovative Ethereum Foundation project (to create 2p2 applications), and the coin was renamed Tether.
Before the changes, the cryptocurrency was an ordinary unit in the list of altcoins, not standing out in anything special. After the rebranding, Tether acquired not only its current name, but also changed its strategy in the cryptocurrency market. To this day, the main task of the project is considered to be the process of merging the unstable electronic money market and the fiat money market. A feature of Tether is the fact that all electronic funds are backed by real money in the vaults of Hong Kong banks.
The system is distinguished by its transparency. Each user can get acquainted with the state of the account and the volume of the cryptocurrency in circulation. Tether Limited publishes reports on the status of bank accounts so that users have no doubts about the fiat confirmation of the currency they use.
With the growing popularity, the developers decided to add two more currencies for use within the system. This is how the euro and the Japanese yen appeared in Tether, which were mentioned above.
Not all experts recommend trusting Tether, 2017-2018 was a time of controversy and scandals for the company. However, this did not affect the stability and popularity of the cryptocurrency. Tether is definitely a resource to watch out for right now.
Almost all the time of its existence, controversy, discontent and scandals revolved around the electronic currency Tether. This was due to the companys accusations of financial manipulation in the formation of prices for well-known cryptocurrencies.
In turn, Tether became popular: the percentage of trades on the most famous platforms increased, and the volume of transactions increased. Organizations that accepted payments in cryptocurrency tried to convert funds into Tether in order to avoid losses in the event of a sharp drop in known cryptocurrencies. The reason for its popularity can be considered the unusual format of Tether and the stability of the currency due to the peg to the dollar.
Platform owners are seeing steady growth in Tether. It is this system that is accused of a sharp drop in bitcoin, and skeptics argue that the cryptocurrency is confirmed with real money by only three quarters of the reserve. Despite the attacks, Tether continues to occupy one of the leading positions and shows enviable stability.
The secret of Tethers popularity lies in the ability to conduct all the necessary transactions using blockchain technology without resorting to the banking system, in the convenient transfer of cryptocurrency to fiat, in the high speed of payments, as well as in the ability to regulate the dynamics of price changes in other cryptocurrencies.
Most cryptocurrencies are designed to generate profits through investment. It is impossible to make money on Tether in this way, since the dollar is subject to inflation, which is natural for fiat money. Therefore, the question arises about the purpose of Tether and whether such a cryptocurrency can be useful.
Tether is considered an alternative option for traders and investors, it can replace transactions with real money. Among the advantages of this cryptocurrency, one can note the fast processing of transactions and the absence of commission for transfers within the system, convenient conversion, as well as the absence of risks of losing part of the capital due to low volatility.
Experts even call this cryptocurrency a “haven” for traders. They store their funds in a Tether wallet and, when the right moment comes, quickly exchange them for the desired currency. With the help of such manipulations, users avoid unexpected losses of part of their capital.
Among the disadvantages of Tether are fluctuations in the rate. USDT can vary from $ 0.89 to $ 1.11 (with the developers declaring a constant stable exchange rate of 1: 1). For some time, quite a lot of tokens were issued, which aroused suspicions of the confirmation of the cryptocurrency with fiat money.
To summarize, lets say: Tether is a good intermediary between real money and cryptocurrency, which has its pros and cons. However, there is no point in arguing about the benefits of the system.
All transactions related to Tether provide users with certain advantages:
Receiving new fiat money services (such as gift cards).
The ability to set prices for goods and services in the format of fiat money, and not cryptocurrency, the rate of which is unstable.
Reduced business costs, increased privacy.
No commission when converting cryptocurrency into fiat money.
It is impossible to get Tether coins through mining. There are 3 ways to get USDT: buying on the official website for fiat, purchasing on exchanges for Bitcoin or Ethereum, mining another cryptocurrency and then exchanging it for USDT.
You can buy Tether currency on most popular cryptocurrency exchanges. To withdraw funds, you will need any wallet that supports the Omni Layer. There are 2 options for a successful USDT to USD transfer. Lets consider in detail both methods.
The first way is to transfer to a convenient currency before the exchange (LTC):
Converting USDT to Cryptocurrency (LTC).
Transfer to an exchange with fiat services.
Exchange LTC for real money.
Conclusion to the card.
The second option is transferring to exchange offices that support USDT. The disadvantages of this method are commissions and more frequent cases of fraud.
An easy way to create a Tether wallet is to go to the Tether.to platform, which includes transactions to a bank account. After registering and filling out information about the user, you need to activate two-factor authentication, which will allow you to use the wallet and increase the degree of its protection.
This currency is the most difficult to consider in terms of investment and profit. In the first two years of Tethers existence, the number of created coins in circulation did not exceed 10 million. Over the entire time, the rate has changed only by minimum values, so only those users whose national currency will undergo significant changes in price can make money on Tether.
USDT is very suitable for working in the cryptocurrency market, even though not all exchanges cooperate with the dollar. This does not increase the price of the coin, but adds to its popularity. According to experts, Tether will develop and in the future may become one of the main directions of the cryptocurrency world.
On the other hand, some experts argue that Tether will lead to a global crisis in cryptocurrency systems. In response to such statements, the developers strive to make Tether as transparent as possible. If the user doubts the honesty of the developers, but wants to try to work with the system, he should conduct transactions, starting with small amounts, gradually understanding all the nuances.
Criticism of Tether, as well as threats to cryptocurrencies from cybercriminals, are forcing developers of different systems to work harder on their projects in order to ensure their stability. Information about the advantages and disadvantages of Tether should help each potential user decide if this option is right for him.
At the moment, all charges of dishonest work are more like attempts to denigrate the company in the competition. The reaction of users on social networks is ambiguous: there are both fans of the system and its ardent opponents. Take this advice: you shouldnt risk too large amounts, because the main advantage of Tether can result in serious financial risks.
Added: 30.11.1999 
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