Tether is a cryptocurrency which claims to be backed by the US Dollar, meaning for every one Tether there is, they hold $1 USD in their reserves. Every Tether is backed 1 to 1, so the price of one Tether remains the same as one US Dollar. Therefore, Tether is a stable cryptocurrency and is essentially digital US Dollars operating on secure and transparent blockchain technology. Tether has received some flack in the past about whether they were really backed 1 to 1 by the US Dollar. However, these allegations were put to rest on June 20, 2018, as the company published the results from a professional audit, proving transparency. This was a big deal, as Tether is the most widely integrated crypto to fiat currency today. Tether is integrated on the most exchanges and is used widely by cryptocurrency traders. As well, Tether is gaining more and more popularity among traditional online businesses like online trading brokerages.show more
Most cryptocurrencies like Tether are still relatively new and do not yet have an official symbol or sign used to represent their currency. However, each cryptocurrency has a logo that’s used to differentiate and identify the crypto. Tethers logo, which will likely become their sign is a “T” with a halo or ring around the center of it. The logo is nice and simple and could easily become the cryptocurrency’s sign. Another method used to identify and represent Tether is its ticker or code, (USDT). This is what’s most commonly used to represent cryptocurrencies like Tether. As for denominations of Tether, there is no official name or set number of denominations like there is for the US Dollar.
Tether is awidely exchanged cryptocurrency and accounts for around 17 percent of all daily crypto trading volume and has a market cap of $2.6 billion. Cryptocurrency traders use Tether to trade in and out of cryptocurrencies like Bitcoin, Ethereum, and so on. They do this because Tether is much easier, cheaper, and more convenient than exchanging crypto into USD. Also, when exchanging their crypto into Tether, the value is protected because Tether is a stable coin backed 1 to 1 by the US Dollar. The most common Tether cryptocurrency pairs include BTC/USDT, ETH/USDT, EOS/USDT, TRON/USDT, and the list goes on. Tether is used for exchanging a wide variety of cryptocurrencies and can be exchanged into US Dollars on a 1 to 1 ratio.
Tether is not stored in a traditional bank account, instead people store tether in a cryptocurrency wallet or on a cryptocurrency exchange. Banking with Tether presents numerous benefits over the traditional banking system. Users can send Tether to one another for free using their Tether.to wallets, as well as cash their Tether in for fiat currency. Any exchange or trading brokerage accepting Tether allows for fast and secure deposits and withdrawals over the blockchain for far less fees than traditional payment methods. Therefore, banking with Tether can be a very lucrative alternative for traders if it’s accepted at the brokerage or exchange they use.