Tether is a cryptocurrency that uses the bitcoin blockchain. The coin is tied to fiat money, including the dollar, euro and Japanese yen. It is used for conducting various financial transactions. This is a text from project cryptodefix. The token is issued by the Tether Limited corporation, which claims that the coin is backed by a real stock of assets in the accounts, in other words, 1 million tokens is equal to 1 million fiat money.
The issuer of Tether tokens is Tether Limited. You can monitor the emission process in Omni Explorer. The cycle of circulation of Tether tokens includes the following stages:
- The user deposits the fiat funds to the Tether Limited bank account.
- Tether Limited creates Tether tokens in the equivalent of 1 USD = 1 USDT or 1 EUR = 1 EURT and lends them to the user. The tokens are put into circulation.
- The user performs operations with Tether: transfers, exchanges, etc.
- The user makes a deposit to Tether for repayment in fiat.
- Tether Limited destroys the deposited tokens and sends the fiat to the user.
Tezer has a fixed price and there is no need to expect price drops or rises. It is known that the purchasing power of any real currency is reduced due to rising inflation, and the contribution to the Teaser can be considered a deposit at 0 %. The token brings great benefits for investors and traders, since it acts as a substitute for fiat money. There are several reasons for this:
- The speed of performing operations. Working with dollars to deposit or withdraw to foreign exchanges takes a lot of time, especially on weekends or holidays. Transactions using Tether take several minutes, and this is very important for traders.
- The costs of financial transactions. International transfers include high fees, additional conversion rates are possible, and other charges are charged. Working through cryptocurrency wallets is free.
- Stable cost. Cryptocurrencies are volatile, so stability is in the hands of traders, especially if it is not possible to use highly liquid markets. For example, buying Ethereum for Bitcoin, a trader gets the right amount of coins, when there is a growth of 10 %, the trader sells it for the purpose of earning money, changing it to BTC. During the transaction period, the value of the second coin is reduced by 15 %, which leads to losses. Using USDT, you need to worry only about the cost of Ethereum.