If you have been active in the digital currency market, you must have used Tether in your transactions or at least heard of it. In this article, we are going to talk about Tether, its applications in the digital currency market, news about it, etc. So if you want to know everything about Tether, stay with us until the end of this article.

What is Tether ?

Tether is represented by the symbol USDT. Tether is a stable coin that has a value equal to one US dollar. In other words, each Tether digital currency is backed by one US dollar.

Stablecoins are stable and price stable coins that are backed by the US dollar or other fiat currencies, digital currencies, gold, other valuable commodities, etc. The most important advantage of stablecoins is providing users with liquidity and reducing losses in market fluctuations. In other words, these coins provide an escape route for traders in bear markets to use them without converting their holdings to fiat money.

Among the various stablecoins, Tether’s many advantages and applications have made this digital currency the most popular stablecoin in the cryptocurrency market. To get more information, we suggest you to participate in Rahvard Academy’s digital currency course.

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History of Tether currency

Ifinex is the founding company of Bitfinex exchange in Hong Kong. This exchange is one of the largest and most reliable digital currency exchanges in the world, whose CEO is Jean-Louis van der Velde. Together with Stuart Hoegner and Giancarlo Devasini, he founded a company called Tether Limited in Hong Kong, which issues Tether tokens. Also in With Paper Tether, Craig Sellars, Brock Pierce and Reeve Collins are mentioned as the founders and developers of Tether’s stablecoin.

This stablecoin was launched in July 2014 under the name Real coin, and after a short period of time, it was renamed to Tether in November of the same year. In February 2015, the Bitfinex exchange added the Tether currency to its platform and the trading of this stablecoin began.

This digital currency was issued by Tether Limited and offered through the Bitfinex exchange, and then it will be available to traders. After the launch and launch of Tether backed by USDT, Ifinex decided to launch other tokens:

• The EURT token was issued based on the value of the Euro and has a backing equivalent to one Euro.
• Tether Gold was issued based on the value of gold and has a backing equivalent to one ounce of gold.
• CHNT, which was issued based on the value of the Chinese Yuan and has a backing equivalent to one Yuan.

But none of them became as famous and widely used as USDT.

As we mentioned earlier, the value of steel coins depends on the value of a valuable asset such as gold, oil, etc. or a fiat currency such as dollar, euro, yuan, etc. Tether digital currency is not exempt from this law and at the beginning of its launch, it had a dollar backing and its value depended on the value of the dollar. But this dependence changed in March 2019 and during an update it was announced that each Tether will be supported by reserves such as cash, traditional currencies, loans granted to third parties (intermediary companies), crude oil, etc.

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Types of tethers

Digital currencies have the ability to be offered and traded on one or more blockchains. Tether is no exception to this rule and has the ability to be offered in different blockchains. With the passage of time and the formation of new digital currency networks, this stablecoin underwent changes and tried to adapt to new conditions and blockchains, and finally it was released for the first time on the Bitcoin blockchain by the Omni layer (OMNI). After releasing Tether on the Bitcoin blockchain, Tether Limited decided to launch this currency on the blockchain of other currencies such as Ethereum (ETH), Binance Smart Chain (BSC), Tron (TRX), Solana (SOL), EOS (EOS). , Matic, Algorand, Phantom (FTM), Hecochain, Terra, Arbitrum, XDai and some other networks and thus Tether became available in many different blockchains.

Note that the nature of Tether offered in the Ethereum blockchain is no different from the Tether offered in the Tron blockchain, and the only difference is in the amount of fees and the speed of transactions of these two networks. Because each blockchain has its own speed and fee.

The most famous tethers that are offered and accessible on the platform of famous blockchains are:

1. Tether Omni ( USDT OMNI )

For the first time in 2014, the Bitcoin network made it possible for USDT tokens to be offered on this network with the OMNI standard. The transactions of this network had low speed and high fees, but the desire of users to quickly transfer Tether and pay low fees made the conditions for the supply of this stable coin on other blockchains to be provided.

A Tether Omni address is similar to a Bitcoin address and starts with the numbers 1, 3 or bc1.

2. Ethereum Tether ( USDT ERC-20 )

By creating smart contracts, the Ethereum network was able to create a great revolution in digital currencies and blockchain networks. The high speed and lower transaction fees of the Ethereum network made it popular compared to the Bitcoin network and prompted Tether Limited to provide the ability to offer Tether on the Ethereum network. Accordingly, Tether was introduced on the Ethereum blockchain with the ERC-20 standard.

Ethereum Tether address is similar to Ethereum address and starts with 0X.

3. Tethertron ( USDT TRC-20 )

With the expansion of the Ethereum network and the development of decentralized smart applications in the field of financial affairs, the speed of network transactions, the reduction and the transaction fees increased. This caused the dissatisfaction of the users of the Ethereum network and reduced the use of Ethereum. Following these events, the creators and developers of Tether decided to release this digital currency on the Tron blockchain platform and with the TRC-20 standard.

In the beginning, Tron was a token on the Ethereum network, but over time, it created its own network and now has its own independent blockchain. This network has high transaction speed and lower fees, which has attracted many traders to use it to transfer Tether.

Tether address in Tron blockchain starts with T.

4. Tether Binance and Tether Binance Smart China ( USDT BEP-2 & USDT BEP-20 )

Binance exchange was able to prove itself as one of the most reliable and largest digital currency exchanges by 2020. This exchange first launched the Binance Network and then the Binance Smart China Network to expand the use of decentralized software and smart contracts. The high transaction speed and low fees in these networks made these two blockchains strong competitors of other reputable blockchains. With the increasing popularity of the Binance network and Binance Smart Chain, Tether Limited also tried to use the credit of these two blockchains for its faster growth. Therefore, it released a significant number of Tether with BEP-2 and BEP-20 standards in the Binance and Binance Smart China networks.

5. Solana Tether ( USDT SOL )

During the popularity of the Solana blockchain as the fastest and most scalable blockchain in the world, it received a significant reception and Tether Limited decided to transfer some of its digital currencies to the Solana blockchain.

How to convert Tether types to each other?

You can convert different types of tethers to each other, but you must be careful to choose the correct source and destination network at the time of transfer. For example, if you have Tether on the Tron network and transfer it to a Tether address on the Ethereum network, you will lose your capital.

To convert Tether on the Tron network to Tether on the Ethereum network, just be careful in choosing the exchange. The exchange you choose must support both Ethereum and Tron networks. First, transfer your USDT to the address on the Tron network in Binance, and then, when withdrawing from the Binance exchange, select and enter the destination address from Tether on the Ethereum network. In this way, Binance exchange will convert USDT on Tron network to USDT on Ethereum network for you.

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How does Tether Limited  and USDT   digital currency work   ?

The company Tether Limited first released Tether digital currency on the Bitcoin blockchain using the OMNI platform, but over time, it realized the negative impact of high transaction fees on the Bitcoin blockchain and decided to launch this digital currency on the Ethereum, IAS blockchains. , Tron, Algorand, Binance, Binance Smart Chain and a number of other blockchains. As we mentioned, this stablecoin has dollar backing and each unit of USDT is backed by one US dollar that is in the company’s bank reserve. Tether Limited announced that at the same time as issuing new USDT currencies and offering them in the exchanges, an amount equivalent to the issued USDTs will be added to the company’s bank reserve as their dollar backing.

But it might be interesting for you to know how the Tethers that are traded in the exchanges are produced and supplied:

According to the market supply and demand, Tether Limited issues USDTs and offers them on the Bitfinex exchange. After offering USDTs on the exchange, traders transfer them to other exchanges and wallets, and in this way, the circulation of this digital currency begins. Therefore, the production of USDT, unlike Bitcoin, does not happen during the mining and extraction process and is done directly by Tether Limited, which is a centralized entity. Also, its distribution in the Bitfinex exchange is a centralized distribution. But USDT transactions are done on different blockchains and are decentralized.

Is Tether a blockchain network?

USDT does not have its own blockchain and is a token offered and traded on other blockchains by Tether Limited. Tether is the unit of value transfer in the blockchain, while the blockchain creates the technical infrastructure needed to transfer Tether.

Who uses Tether stablecoin?

Tether is the first stablecoin of the cryptocurrency market, and for this reason, it is very popular among the traders of this market and has the largest volume of transactions among other stablecoins.

On the other hand, simultaneously with the development of technology and the increase of people’s willingness to invest, the market of digital currencies became more famous and many people entered this market with the aim of investing and earning profit.

It can be said that everyone who has traded in the cryptocurrency market has used Tether in their transactions. Because traders use Tether to buy and sell digital currencies. On the other hand, to save profit and exit a transaction, they convert their digital currency to Tether and make a profit.

Dominance Tether

The word Dominance (Dominance) means dominance and indicates the ratio of market value (Market Cap) of Tether to the total market value of cryptocurrencies (Total Market Cap).

The market value of any digital currency is obtained by multiplying the price of that currency by the number of coins in the market and in circulation, and since the price of Tether is stable and always equal to one dollar, therefore, the only influencing factor in its market value is the number of Tether coins. are currently circulating in the market of digital currencies.

Suppose the market value of Tether is 10 billion dollars and the total market value of cryptocurrencies is 250 billion dollars. In this case, Tether’s dominance, which is obtained from the ratio of Tether’s market value to the total market value of digital currencies, is equal to 4%. But you can see it without doing any calculations by visiting the Trading View site and searching for the symbol Dominance Tether (USDT.D).

Comparing Tether Dominance and Bitcoin Dominance and the total market value allows you to get a good overview of the market situation. If Tether’s dominance decreases, it can be said that investors converted their Tethers to other digital currencies. Therefore, we will expect the growth of the market. In the opposite case, that is, when the dominance of Tether increases, we can say that investors have converted their digital currencies to Tether and saved and profited. So we can expect the market to fall.

What is the use of  USDT  (Tether)?

The Tether digital currency is a suitable alternative to the dollar in many popular and reliable exchanges and has created more flexibility for investors, which has made it one of the most widely used digital currencies in the cryptocurrency market. The most important applications of this stablecoin are:

1. Avoid losses in volatile markets

When the digital currency market undergoes extreme fluctuations or we witness a bear market, the psychological atmosphere of the market and traders become tense and there are only a few ways for a trader:

The first way is to sell the asset and turn it into cash and wait to enter the next suitable position, which is a time-consuming and expensive path and requires the trader to pay a very high transaction fee to sell the asset and buy it again in the next suitable position and transfer to the wallet. makes money

The second way is to be patient and stay in the market and bear the losses of the fluctuating or bear market, which will also result in a lot of losses.

The third way that helps the trader in this situation is to convert the assets into Tether and avoid the extreme fluctuations of the market.  By converting their assets into Tether, which has price stability, traders avoid incurring losses from selling assets and staying in a bear market. On the other hand, when a transaction has reached its profit limit, the trader can prepare himself to enter the next transaction in suitable conditions by converting the asset to Tether and exiting the transaction. Therefore, if there are no such stable currencies, the trader is forced to exit the market after each transaction and convert his assets into cash and re-enter, which is a costly and time-consuming path.

2. A currency for easy transfer of capital and payments in domestic and international transactions

Tether, like many digital currencies, has the ability to be used in domestic and international trading systems, and by using it, both sides of a transaction are able to pay a transaction without paying additional fees or converting cash to another currency, with the lowest transaction cost. Pay and receive the transaction.

Note that this method is widely used for residents of sanctioned countries. We know that in common payments made through monetary-banking systems, authentication is inevitable and this issue is a barrier to transactions in many countries. Even in cases where these restrictions can be circumvented, trading will have high fees and will still have unavoidable risks and risks. But trading with digital currencies like Tether is completely anonymous and without authentication, it is fast and can be done with the lowest transaction fees, and these features have made these transactions popular all over the world.

3. Quick and easy money transfer to wallets and exchanges

Currently, Tether digital currency is accessible on many blockchains, including Ethereum, Bitcoin, Binance, Binance Smart Chain, IAS, Algorand, Tron, Solana, etc. Therefore, it is possible to store this digital currency in exchanges and digital hardware and software wallets such as Bitcoin wallets, Ethereum, Solana, Tron, etc., and this transfer can be done with high speed and the lowest transaction cost.

4. Fix accounting problems in Tether payment

Since the use of digital currencies such as Bitcoin became more popular in transactions and payments were made by them, companies that used these currencies to pay for their transactions faced difficulties in their accounting process. These companies had to estimate the payment value of their transactions against the US dollar. But by using Tether, which has a value equivalent to one US dollar, this problem has been solved and the need for re-estimation has been eliminated.

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Advantages and disadvantages of Tether

Advantages

In general, stable coins, of which Tether is one of the most popular, are one of the factors that led to the prosperity of the digital currency market in the world and have many advantages for traders in this market, the most important of which are:

1. USDT  price stability and maintain trading profit

Trading with volatile currency pairs entails many risks and dangers for traders. Suppose you intend to trade volatile currency pairs like Bitcoin and Ethereum and convert your Bitcoin to Ethereum. Now suppose that after some time, Ethereum grows by 15% and your transaction is in profit, and to exit the transaction, you convert Ethereum to Bitcoin again, but during the conversion period, Bitcoin suddenly drops by 20%. In such a situation, before the fall of Bitcoin, your transaction was in profit, but with its 20% drop, you have lost your profit and suffered a loss. Therefore, it is much easier to work with a stable coin than to work with two unstable currencies, and with this, when trading currency pairs, you will only worry about the fluctuations of one currency, not both currencies.

2. High transaction speed and no need for banking system

Before the emergence of digital currencies such as Tether, the payment of transaction amounts was done through the banking system, which was a time-consuming process, and in some cases, it took several days to register a transaction and exchange money. But Tether was able to solve this problem and make it possible for traders to make transactions and payments and receipts in a fraction of a second using this stablecoin.

3. Low transaction fees

We know that transferring money by bank and transaction in the SWIFT network is very expensive, while Tether solves this problem and you can send large sums of money from anywhere in the world to another point in a fraction of a second and only by paying the transaction fee of the blockchain network. do.

4. Protection of capital value

One of the ways to preserve capital value in many countries with high inflation is to buy digital currencies. But because most of these currencies do not have price stability and experience severe fluctuations, the desire of many traders towards stable currencies such as Tether, which are considered an attractive option, has increased.

5. The history of Tether’s presence in the digital currency market

One of the advantages of USDT compared to many steel coins is the age of this digital currency, which has gained the trust of users.

Cryptocurrency market traders have seen many scam or weak projects over the past years that didn’t last long and were destroyed in less than a year. But Tether is one of the coins that has gone through several heavy and terrible bear markets and managed to maintain its balance and stability despite many ups and downs. Sometimes we even saw the price of this currency moving away from one dollar, but it managed to maintain its balance again and is still standing. For this reason, this currency is trusted by traders and holders and is known as one of the pioneers of the cryptocurrency market.

6. Tether’s impressive efficiency in trading platforms

Access to dollars, euros, etc., which are common fiat currencies in the world, is not easily possible for everyone, and their exchange in transactions causes many problems due to their governmental nature. But with the emergence of stablecoins and especially Tether, many problems of access to currency sources and transactions were solved.

7. High liquidity due to having the largest volume of market transactions

Paying attention to the liquidity of an asset at the time of its purchase is of particular importance. Because if you intend to convert assets into cash, this will be possible easily and quickly. This feature is also present in Tether and it can be roughly considered equal to cash. So whenever you decide to convert it into cash, it will be done in a fraction of a second.

8. Acceptance of  USDT  in most exchanges and its widespread use

Due to the popularity of Tether, as soon as an exchange plans to add a new currency to its platform, the first market that will be created is the market consisting of the new currency pair with USDT. Because otherwise it will lose many of its users.

9. Easier to store  Tether  than paper money

Keeping paper money has its own risks and problems, and the more your capital in the form of paper money, the more these risks will increase; Especially if others are also aware of this capital. But if you store your capital in the form of digital currencies, having a software or hardware wallet, you will be able to access it easily, and if the wallet is lost, having a valid password, you can recover your wallet and tokens. .

Disadvantages

1. Centralization of  USDT

Decentralizing things that were done centrally before the creation and expansion of the digital currency market is one of the biggest achievements of this market. But unlike many market currencies, USDT is not a decentralized stablecoin. This currency was created by Tether Limited and distributed through the Bitfinex exchange. Therefore, users have no choice to use USDTs except to trust its management body and the statement that each Tether is supported by one US dollar.

2. Dependence of  USDT  on fiat currency

As we mentioned earlier, the value of Tether is dependent on the value of the dollar, euro, yuan, gold, oil, etc., and this dependence provides the possibility of optimal transactions for financial market users. But along with the attractive benefits, there are also risks. Suppose something happens to one of the fiat currencies that the value of Tether depends on, which causes its value to decrease. For example, if the value of the dollar falls against the pound, Tether will follow this pattern and the value of Tether against the pound will fall.

3. Legal problems

Because USDT is backed by a fiat currency, it must be subject to fiat currency regulations, a requirement that raises the possibility of government interference in companies.

Why do Tether and paper dollars have a price difference in Iran?

1. Fluctuation of the digital currency market and the creation of a price gap

Tether and paper dollars are traded in separate markets. When the volatility of the digital currency market increases and for example Bitcoin falls, the demand for Tether will increase. Because all market traders have a strong desire to sell Bitcoin and convert it into a stable currency like Tether. This will increase the price of Tether and create a price gap between this stablecoin and the paper dollar, which will return to the initial balance over time. The opposite of this is also true and when the digital currency market starts an upward trend, traders have a strong desire to sell their Tethers and buy other currencies, and it is possible that this issue will cause the price of Tether to decrease and create a price gap between Paper dollar and Tether.

2. Exchange policies and fees

It is possible that the price of a currency may be different in different exchanges according to the volume of transactions and policies specific to the exchange. Exchanges that are small and have less volume of transactions offer currency at a higher price to compensate for liquidity. Also, in exchanges that are not intermediaries and are the parties to the account, they offer more expensive currency to avoid losses or gain more profit.

Note that usually the dollar price in the open market is lower than the USDT price, and if the paper dollar price in the open market is 43300, the price of each USDT unit in online exchanges is 43500 Tomans.

3. The extreme fluctuation of the rial and the creation of a price gap

When the value of the Rial undergoes severe fluctuations, it will happen similar to what happens in the fluctuations of the digital currency market. Of course, note that the effect of the value of Rial on USDT and paper dollar is the same and there is only a price gap between the two, which causes that if the value of Rial fluctuates, the value of one currency will be affected first and then the value of the second currency will be affected. put This price gap will be filled after some time and the initial balance will be established.

4. Transaction fees of different networks

Another reason for the difference in the price of Tether and dollars is the transaction fees in different networks.

We know that each of the blockchains on which Tether is offered and traded have different transaction fees according to their scalability and structure. For example, the Ethereum blockchain has the ability to process and record 10-15 transactions per second. Whereas the Solana blockchain is capable of processing 1900 to 2300 transactions per second. Therefore, it can be said that the speed of transaction approval has a significant impact on blockchain fees. Trading on a blockchain platform like Ethereum, which verifies fewer transactions per second, has higher fees. Because normally, network miners pay attention to the amount of fee paid to prioritize transactions, and the transaction that pays a higher fee is prioritized for approval. The same issue will make Ethereum network traders have to pay high fees and this issue will have an indirect effect on the spot price of Tether.

Is Tether digital currency safe?

Despite its centralized production and supply, Tether is traded on the platform of decentralized blockchains and benefits from the security of these networks. Therefore, the security of the Tether transaction is guaranteed by using the security of blockchains.

Tether claims to have as much dollar backing as the currencies offered, but the lack of transparency in auditing the company’s bank reserves has prevented users from fully trusting this widely used digital currency. So users are not sure that each USDT is backed by a US dollar.

Another problem that can cause some users to worry is the concentration of Tether Limited. This company is a centralized entity and has the ability to limit and freeze the assets of users who live in sanctioned countries. Therefore, Iranian users are always worried that tracking blockchain transactions will lead to their location being identified and their assets being frozen. to be

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How to buy Tether?

In foreign countries, users have the possibility to buy Tether from digital currency exchanges by having an international bank card and paying in fiat currencies such as dollars, euros, etc. But in Iran, due to restrictions, this is not possible and users do not have access to international bank cards. Therefore, they will need a domestic digital currency exchange to buy Tether. First, you must register in a domestic digital currency exchange and after completing the registration process, prepare the necessary Tether by using a bank card and paying in Rials. To trade in international exchanges, it is enough to transfer the necessary Tether to the wallet of the exchange and buy your desired digital currencies.

Be careful that your asset is under the control of the exchange as long as it is in the wallet of the exchange, and there is no guarantee of your investment return if it is attacked by a cyber attack or goes bankrupt. Therefore, if you intend to keep your digital currencies, it is better to transfer them to your hardware and software wallet.

The best wallets to store Tether

The most important and best way to store Tether is to use hardware and software wallets. Choosing the type of wallet that you intend to buy and keep plays an important role in choosing the right wallet. Therefore, you should consider the type of Tether and its blockchain standard.

Digital currencies replace Tether

Many people prefer to use its alternatives instead of using Tether. On the CoinMarketCap site, you will see 75 stable coins in the list of stable coins and you can choose one of them according to your needs and intended use. But we are going to introduce some stable coins that can be an alternative to Tether.

1. DAI

DAI is a decentralized stablecoin that is not issued and controlled by any entity and has a value equivalent to one US dollar. In contrast, Tether, which is backed by the US dollar, is backed by a combination of USDC, ETH, WBTC, and BAT tokens held as collateral on the Maker platform. You can see the amount of USDC, ETH or other currencies considered as collateral for DAI at any time, using MakerScan, and this feature has increased the transparency of this digital currency and made it popular among users. One of the other advantages of DAI, which has attracted the attention of Iranian users and other users of sanctioned countries, is the decentralization of this digital currency. Using Tether means accepting the risk of the intervention of a centralized entity and the possible freezing of assets.

2. BUSD

Binance USD is a stablecoin created by Binance in collaboration with Paxos. This stablecoin has a backing equal to one US dollar and one dollar is kept in US bank accounts for each BUSD unit. BUSD is widely used in Binance Smart China and has BEP-2 and BEP-20 standards and is compatible with Ethereum. Paxos publishes monthly reports of Binance dollar-backed holdings in currency reserves, increasing the transparency of BUSD. Many users prefer to use this stablecoin due to the lower fees and higher speed of BUSD transactions on the Binance network, and their only concern is the rules of Paxos. Paxos has the right to freeze the accounts of users of sanctioned countries based on the trust charter and banking laws of New York, and this direct and centralized involvement of BUSD has worried users.

3. USDC

USDC is a centralized stablecoin created in collaboration with Coinbase and Circle and developed and controlled by the Center Institute. Each unit of this digital currency will be backed by one US dollar held in the form of cash or short-term bonds in a US bank reserve.

To generate USDC, a person who intends to receive this currency, sends the dollar to the bank account of the token issuer, and the issuer, using smart contracts and ERC-20 standard, produces tokens equivalent to the received amount and delivers them to the user. The dollar that is received will also be kept in bank reserve as USDC backing.

4. UST

UST or Terra USD is a decentralized stablecoin that is currently used in Defi programs of Solana, Ethereum, Binance Smart China, Cosmos, Polygon, etc. networks. This stablecoin has a value equivalent to one US dollar, but unlike Tether, it does not have a dollar backing, and unlike other decentralized stablecoins, it lacks any dependence and support. To generate each UST, one LUNA token must be burned.

5. TUSD

TUSD, or True USD, is another Tether alternative digital currency launched on the Ethereum network with the ERC-20 standard. This stablecoin was created by Trust Token and has a value equal to one US dollar. In other words, for each unit of TUSD, one US dollar is held as a backup in the escrow accounts. This digital currency is more transparent than Tether, but like Tether, Stablecoin is centralized and the company that created it has the ability to block and freeze users’ funds.

6. FRAX

FRAX is a steel coin that was launched by Sam Kazemian and his team, on the Ethereum platform and with the ERC-20 standard, and is considered a new generation of digital currencies. In this digital currency, part of Steelcoin is supported by dollars and another part is supported by collateral. Finally, minting or burning the FXS governance token will be used to maintain price stability. If the price of FRAX increases to more than one dollar, the amount of collateral will decrease, and if its price reaches less than one dollar, the situation will be reversed.

Concerns and news about Tether

There are concerns and worries about Tether and Tether Limited, which is its producer and distributor, which has worried the users of this digital currency:

Tether is a centralized stablecoin that is produced and distributed by Tether Limited, and this company can produce as much Tether as it wants. Not having a specific ceiling for production tethers, has made this digital currency not considered a rare currency.

Tether Limited initially announced that one US dollar will be stored as a backup for each USDT produced, but after some time this news was denied and the company announced another claim regarding the backup of issued USDTs. Tether Limited said that each USDT is backed by the company’s dollar reserves, which include fiat currencies, cash or other assets and receivables from loans to third parties, and therefore each Tether will not be 100% backed by one US dollar.

Tether Limited has been accused of manipulating and inflating the price of Bitcoin, but has denied the accusation.

Another issue that worries users is how more than 31 million dollars were hacked in 2017. After this incident, Tether Limited company informed the users that there is no need to worry and there is enough support for Tethers in the bank reserve but did not publish a transparent audit report of USDT bank reserves.

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The future of Tether

Despite all the ups and downs that the Tether digital currency has experienced over the years and during several bear markets, it is still the most popular stablecoin and its daily trading volume has reached billions of dollars.

Frequently asked questions about Tether

What is Tether?

Tether is a centralized stablecoin that has a value equivalent to one US dollar and is backed by the dollar. This digital currency is produced and distributed by Tether Limited.

Is Tether mined?

Tether is a centralized digital currency that, unlike Bitcoin, is not produced and mined during the mining process. This stablecoin is traded on the platform of blockchains and in a decentralized manner, but due to the fact that it is produced and distributed by a centralized entity, it is not considered a centralized digital currency.

Does Tether have its own blockchain?

Tether is a stable coin that does not have its own blockchain and is offered and traded on the platform of other blockchains.

What is the use of Tether?

1. Retention of trading profits

2. Avoid extreme market fluctuations

3. Easy money transfer and payments in domestic and international transactions

4. Quick and easy transfer of money to wallets or exchanges

Why is the price of Tether always fixed?

Tether is a USD-backed stablecoin, and each Tether unit is backed by one US dollar. Therefore, the value of this stablecoin, unlike the value of currencies like Ethereum and Bitcoin, which changes with supply and demand, is dependent on the value of the dollar and will not change independently.

What is the reason for the price difference between paper dollars and Tether?

The difference in the price of paper dollar and Tether is due to the fluctuations in the value of the Rial, the government’s currency policies, the fluctuations of the digital currency market, the difference in transaction fees in exchanges, the difference in the transaction fees of different blockchain networks, and the difference in the nature of the digital currency Tether and paper dollars.

How can we buy Tether?

This digital currency can be obtained from domestic and foreign exchanges.

 What are the best wallets to hold  USDT ?

1. Trust wallet
2. MetaMask
3. My Ether Wallet
4. Ledger
5. Trezor
6. Crypto Wallet
7. D’CENT
8. Atomic Wallet
9. im Token
10. Ledger Nano X
11. Ledger Nano S
12. SafePal S1
13. Math Wallet
14. Binance Chain Wallet

Conclusion

Tether is one of the most popular stablecoins in the digital currency market, produced and distributed by Tether Limited. This currency has competitors such as DAI, USDC and BUSD, but it is still the most popular stablecoin in the market. By creating a bridge between the world of digital currencies and the fiat currency market and the many advantages it brings, Tether has become the most widely used digital currency despite concerns about the lack of transparency of its backing reserve and the centralized production and distribution process.