Tether (USDT) is the first stablecoin that is backed by fiat currency in the cryptocurrency ecosystem. By this, Tether brings fiat currency such as USD or Euro with cryptocurrencies. Tether uses the advantages of blockchain technology in order to accomplish it. Because of Tether, it is possible to send money everywhere in the world or stay unaffected by the cryptocurrency market’s volatile structure with just one solution.
How Does Tether (USDT) Work?
Tether is based on different blockchain networks such as Bitcoin’s OMNI, Ethereum ERC20 or even Tron. Every USDT in the circulation is backed by a USD. Tether is actually a digitalized version of fiat currencies that backs USDT. By backing every USDT in the circulation with fiat currency reserves, it is possible to convert the cryptocurrency into reserve fiat currencies.
Tether’s Market Cap
In total, Tether has 4.791.930.644 USDT in its supply. According to the press release, there are only 4.637.207.583 USDT in circulation and the rest is under the custody of Tether.
A stablecoin actually is a way that can solve problems of both sides which are cryptocurrencies and fiat currencies. Since it is a cryptocurrency, anyone can send it with low cost and high speed in comparison with fiat currencies. But since it is backed by fiat currencies, the price is not as volatile as a normal cryptocurrency.
Every USDT is backed by a USD in Tether’s reserves and the price is fixed to 1 Dollar.
How & Where To Buy Tether (USDT)?
Even though Tether is a highly controversial cryptocurrency, we cannot deny its advantages for users. You can buy Tether from Binance or Bitfinex cryptocurrency exchanges.
