What is Tether (USDT)?

Tether is a blockchain-based cryptocurrency whose value is stated to be pegged to 1 US Dollar (USD) by its manufacturer, the Tether company. The cryptocurrency traded in the market with the symbol USDT is also referred to as USD Tether. Due to its fixed value, it falls into the stable money category. Tether, which emerged with the name RealCoin in 2014, but was renamed in 2015 with a rebranding, has reached a market value of billions of dollars in a short time due to solving some of the major problems of the cryptocurrency industry. It is possible to transfer the money in your bank account to any user by digitizing the money in your bank account, thanks to the cryptocurrencies, which are called stable cryptocurrencies and can be exchanged with fiat currencies such as dollars and euros. It is possible to avoid disadvantages such as high volatility in trading platforms with stable currencies. Today, Tether is the most preferred of these stable currencies. Created on the principle of stability, transparency and low transaction fees, Tether acts as a bridge between fiat currencies and cryptocurrencies. More than 80 percent of trades with Bitcoin, the largest cryptocurrency in terms of market cap, are made with Tether. This statistic reveals the popularity of USDT. In addition to these, it can be said that Tether provides great convenience for online payments made via cryptocurrency. Many businesses keep their distance from most cryptocurrencies, including Bitcoin, due to high price fluctuations. However, USDT, which is a stable asset with a stable value and high volume, has met the need in this area.

How Does Tether (USDT) Work?

It is possible to exchange Tether, which has become an indispensable option in daily transactions and trade, with US Dollars. It is thought that Hong Kong-based Tether Limited holds USD as much as the amount of USDT in circulation. In other words, the company acts as a trusted third party. Tether was originally built on the Omni protocol. Omni, a versatile platform used for a range of digital assets and currencies pegged to the Bitcoin blockchain, also appears as a layer in the Bitcoin infrastructure. But when the transaction fees and transaction times of the Bitcoin blockchain did not meet the demand for Tether over time, the Tether company began to produce and distribute USDT on Ethereum, Tron, EOS and other blockchains.

How to Store Tether (USDT)?

Since Tether is distributed on multiple blockchains, you must first know which blockchain the Tether you want to store is using. Wallets connected to the Omni network must be used to operate on the Omni protocol. If you want to sync the entire Omni blockchain, you can transact with the Omni Wallet on your computer. If you want to use the ERC20-based Tether built on the Ethereum blockchain, you can transfer Tether (USDT) to Ethereum wallets that support ERC20 tokens.   Source: BTCTurk