All You Need to Know About Tether (USDT)
Blockchain technology is one of the fastest-growing industries, with breaking news, updates, and innovations appearing on the market every day. PointPay experts continue educating its users as it’s imperative to always stay up to date. Today, we will dive into Tether, Stablecoins, and everything you need to know about its technology and advantages.
PointPay experts also want to clarify that this article is for everyone — whether you’re a novice trader or a seasoned investor who still doesn’t understand the importance of Stablecoins.
What is Tether?
Tether is the first and most well-known stablecoin, a type of cryptocurrency which aims to keep crypto valuations stable. It is usually used by traders and investors who want to avoid the extreme volatility of other cryptocurrencies while keeping value within the market.
The main distinguishing feature of Tether is that it is pegged against the U.S. dollar. Tether maintains a 1-to-1 ratio with the U.S. dollar in terms of value. That makes it highly useful for storing or transferring value, as it is always worth the same price. Unlike Bitcoin, Ethereum, and other popular altcoins, Tether’s price usually holds steady. With that in mind, we can conclude that investing in Tether (USDT) is not like investing in general cryptocurrencies.
Launched in 2014, Tether was designed to build the bridge between fiat money and cryptocurrencies. It offers traders and investors stability, transparency, and minimal transaction charges.
By providing this much-needed stability, traders can not only hold a fiat-like digital asset but also easily trade it for other coins. This unique feature of Tether (USDT) makes it a top-rated coin. However, it should be remembered that USDT is also not immune to some risks.
How can you use Tether with PointPay?
There are three most common Tether (USDT) use cases:
- Trading. Users can convert currencies they need into USDT and then use it to purchase other tokens to reduce both costs and waiting times. What is more, you can easily move funds between exchanges;
- Lending. Lenders do not have to worry about any losses due to volatility due to its stability. That is why USDT and other Stablecoins are widely used as lending assets;
- Cross-border payments. International money transfers from or to anywhere in the world can be completed within minutes.
Tether (USDT) advantages
Since so many investors are interested in cryptocurrency due to its volatility and fluctuation in price, owning Tether (USDT) is more like a deposit in a bank account with 0% interest. However, Tether is still extremely useful to traders and investors as it is a real alternative to fiat money. Here are some reasons why:
USD or EUR deposits and withdrawals are time-consuming and take about 2–5 business days to complete. On the contrary, USDT transactions are completed in minutes, making it a significant benefit.
SWIFT transfers tend to be expensive. You can expect major banks to charge 3%-5% in exchange rate costs. It is about $20 in fees and average around $30. Tether (USDT) charges zero fees for transactions between Tether wallets. However, don’t forget about standard blockchain network fees that are inevitable.
Cryptocurrency is widely considered to be volatile. It has the potential for significant upward and downward movements over shorter periods. Trading one volatile currency for another creates plenty of complications and additional risks. That makes Tether extremely useful. Tether became the first stablecoin that gave hope to long-term investors who didn’t want to face the ‘harsh wind’ of cryptocurrency’s volatility.
Tether is one of the most popular Stablecoins with no significant competitors. Compared to other cryptocurrencies, it performs admirably in market capitalization. After about eight years of prosperity, there are no signs of slowing down or any shortcomings. If you want to buy Tether (USDT), you can always do it on the PointPay trading platform, which is one of the trusted crypto exchanges that accept Tether tokens.
Whether you’re a seasoned investor, an aspiring crypto enthusiast, or a novice trader, PointPay experts will continue helping you with all levels of experience to explore and learn more about cryptocurrency, blockchain, and its technology.
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