Learn about USDT
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USDT: what is it and what is the price of Theter
In this article we are going to tell you everything you need to know before investing in Tether (USDT). What is USDT, what is it for, how does it work and its relationship with the rest of the stablecoins.
Price of USDT
If you are interested in knowing how much a USDT is worth and what is the price of Tether, you are in the right place. In this case we are talking about a stablecoin which means that it is anchored in a fiat currency, more precisely the US dollar
USDT to Argentinian Pesos
USDT, like most well-known stablecoins, is pegged to the value of the US dollar. In the graph you can see the evolution of its price
USDT to dollar
The price generates small variations of ups and downs on the value of the dollar. However, as its categorization indicates, the Theter remains relatively stable pegged to the dollar.
What is Tether (USDT)?
Tether (USDT) is a digital currency that belongs to those categorized as stablecoins as its value is a reflection of the US dollar. The intention behind Tether is that it can be used as a digital dollar, since it is based on the US dollar (USD), so the value of a Tether coin will also correspond to the exchange rate of one dollar.
There are other stablecoins in the cryptocurrency industry, but Tether is among the most chosen. Now, why buy USDT if the dollar (USD) already exists? With this cryptocurrency and thanks to the stability of USDT, investors can hold their digital assets in a similar way to regular fiat currencies, but at the same time retain the ability to easily exchange them for other currencies on the cryptocurrency market.
History of Tether
The creation of USDT began to take shape in 2014 with an idea from JR Willet, who is known in the world of cryptocurrencies as "The man who created the Initial Coin Offering (ICO)".
In 2014, Willet was working on Mastercoin, a blockchain that served as a communications protocol running on top of Bitcoin, which was a revolution for Bitcoin and opened the doors for new applications and features.
In the development of Mastercoin, there were Brock Pierce and Craig Sellars who in the same year launched Realcoin using the Omni Layer protocol. The appearance of Realcoin would be one of the biggest projects carried out on Omni at that time.
However, on November 20, 2014, Tether CEO Reeve Collins announced the name change to Tether, as we know it today. The project began to grow rapidly and gain popularity.
Characteristics of this stablecoin
- It is an open source cryptocurrency.
- It complies with all international standards and the different regulations of this activity.
- It is backed by currencies (fiat currencies), which are kept in reserves and provide greater stability
- It has greater stability because it is anchored to the US dollar.
- It is a cryptocurrency with all that that implies but without the volatility.
How does USDT work?
Tether is used as a way to hedge against cryptocurrency market volatility due to its stability. Since each USDT token is pegged to one dollar, holding your money in Tether therefore protects you from the usual market volatility and is an ideal option for those new to cryptocurrencies or those with less risk tolerance.
Advantages and disadvantages of USDT There
are many advantages that Tether offers, but there are also some disadvantages. Therefore, it is important to know them before investing in it. As always, we encourage users to research and educate themselves on each asset before making a decision.
Advantages of the USDT token It does not
- establishlimits for its transfers and it can be sent to any part of the world quickly and at a low cost per transaction.
- It is stable because its value remains tied to the value of the dollar.
- It is possible to know its value at all times, since being directly anchored to the dollar it is possible to know its real value at all times
Disadvantages of the USDT token
- There are doubts about a real one-to-one collateralization between the USDT tokens and their bank reserves.
- It was used to carry out gray operations such as price manipulation or criminal acts.
- In legal and risk terms, Theter makes a download in which they do not guarantee 100% one to one with the USD.
- It is a cryptocurrency controlled by Tether, therefore it is not decentralized and its functions depend on this company.
USDT Argentina - Frequently Asked Questions
>What is the difference between USDT and USDC?
Both USDC and USDT are stablecoins that are pegged to the US dollar (USD), and can be used for trading and/or investing.
Who controls USDT?
The only entity that is in charge of both generating new tokens and taking them out of circulation is the company Tether Limited.
What is the difference between USD and USDT?
The USD (United States dollar) is a fiat currency, that is, it is subject to a state. The legal framework and economic context influence the currency. Instead, USDT is framed within cryptocurrencies.
>What is the USDT TRC20?
USDT-TRC20 is the USDT issued by Tether based on the Tron network, while USDT-ERC20 is the USDT issued by Tether based on the ETH network.
What is the USDT contract?
The contract linear USDT is a . contractThat is, the margin used for a contract linear USDT.
What is the difference between DAI and USDT?
DAI unlike USDT is decentralized. In the case of USDT, they are centralized stablecoins, is that, for each cryptocurrency issued, there is a dollar in the bank of the issuer.
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