Что такое USDT: полное руководство по Tether

How Does Tether Work?

Like other stablecoins, Tether aims to minimize the price volatility typical of traditional cryptocurrencies. To achieve this, the USDT price is pegged to the fiat currency: one USDT equals one US dollar.

The token’s value is backed by the issuing company, Tether Limited, through its own reserves. The company assures that all tokens are fully supported by these reserves. Tether gathers the necessary funds to maintain this backing from those who buy the stablecoins, but it can also use other means like loans or partnerships with financial institutions. To ensure price stability, the size of Tether’s backing must always equal the number of tokens in circulation.

What Is USDT: Key Features to Know

The fact that USDT always maintains a value equal to one US dollar makes it a reliable option for storing or transferring money. Unlike Bitcoin, Ethereum, and other popular cryptocurrencies, which fluctuate in value based on market dynamics, USDT offers stability and avoids market volatility. This makes Tether an excellent alternative to traditional US dollars for various uses, such as making international payments and trading cryptocurrencies without constantly converting them back to fiat currency.

So, the key features and benefits that Tether provides are:

• It offers a stable alternative to volatile cryptocurrencies, protecting against sharp price swings in the cryptocurrency market.
• Tether facilitates transactions in the crypto industry, reducing costs and delays.
• It acts as a bridge between fiat currencies and cryptocurrencies.
• For exchanges, the stablecoin increases the number of available trading pairs and enables trading in regions where fiat currency isn’t available for such purposes.

Tether is distributed in several ways. The main method mainly targets large investors because it requires minimum requirements. Clients deposit fiat funds, like US dollars, into their Tether Holdings Limited bank account. In return, Tether issues an equivalent amount of USDT, which matches the sum deposited into the company’s bank account.

Once issued, USDT can be purchased through crypto exchanges or currency exchangers. The speed of transactions depends on the blockchain on which the token operates and its current activity level.

It’s important to mention that Tether’s privacy level is quite low because of its centralized issuance process. When users deposit funds into a Limited Tether account, they must go through a KYC (Know Your Customer) process to confirm their identity, residence, and the origin of their fiat funds. This means Tether has a detailed record of its users.

What Blockchain Networks Does Tether Support?

USDT doesn’t operate on its own blockchain but is instead issued across various blockchain networks. Initially, this stablecoin was launched on the Bitcoin blockchain using the Omni platform. However, due to slow transaction speeds, it later expanded to faster network blockchains such as Ethereum and TRON.

According to the official website, USDT is compatible with multiple blockchain technologies, including Algorand, Avalanche, Bitcoin Cash, Ethereum, EOS, Liquid Network, Near, Omni, Polygon, Solana, Statemine, Statemint, Tezos, and TRON.

What Are Tether (USDT) Use Cases?

Tether or USDT, like other stablecoins, is used for the following cryptocurrency-related purposes:

Saving Funds

Due to its lower volatility compared to other cryptocurrencies, Tether is often used to secure profits and preserve the value of assets during cryptocurrency market instability.

Крипто Обмен

Tether can be used to swap various cryptocurrencies on crypto exchanges.

Transfers

Tether facilitates transactions and transfers between users and crypto exchanges.

Business Purposes

Companies and individual entrepreneurs can use the USDT Tether token to manage and audit their crypto assets. USDT is also useful in decentralized finance (DeFi). Here, Tether can be used for loans, staking, and as an alternative to national currencies.

What Makes Tether (USDT) Cryptocurrency Popular?

Tether (USDT) is the clear leader among all stablecoins in terms of market capitalization and trading volume, both monthly and daily. According to CoinMarketCap tracking recourse, its market cap is $116.2 billion, trailing only behind Bitcoin and Ethereum.

The popularity of stablecoins generally stems from their role in counteracting the high volatility typical of most cryptocurrencies. Unlike typical cryptos like Bitcoin and Ethereum, which can quickly rise or drop in price, stablecoins are tied to the value of specific fiat currencies. This makes USDT tokens a stable option for keeping funds safe during unstable times in the crypto sector.

USDT became popular as a digital counterpart to the US dollar before its main competitors emerged. Tether (USDT) was one of the first stablecoins, which helped it capture public attention. Later, other stablecoins like USD Coin and Binance USD entered the cryptocurrency markets, but USDT has historically held the leading position. Thus, all experts agree that Tether remains highly popular due to the following qualities:

Market Stability of USDT Tether

USDT is tied to the value of the US dollar, helping it avoid market volatility.

Ликвидность

USDT is compatible with multiple protocols and is widely used across various cryptocurrency exchanges.

Relative Transparency

Tether (USDT) states that each token issued is backed one-to-one by the US dollar.

Hedging Market Risks

USDT offers traders and investors a way to protect against the high crypto volatility. Another reason for USDT’s popularity is the absence of major security incidents related to its use.