What is the Stablecoin Tether All About?

Daniel B
December 7, 2022

The cryptocurrency market has long been marked as a “highly uncertain” and “unstable” space, due to the raging volatility of digital assets. However, there are some unique crypto coins, known as stablecoins, that are not dramatically volatile, with their value tied to some real-world currency.

Tether, or USDT, is the top-ranked stablecoin today and its value is pegged to the US Dollar. The 1:1 ratio of Tether with USD maintains its stable valuation, where $1 will be exchanged for 1 Tether regardless of the broader market conditions.

At VoltCoins, we have consolidated a secure framework to help you easily buy crypto amid interactive conditions. With our simple onboarding process, you can conveniently associate with Tether and other top coins, to level up your crypto game.

How does Tether work?

Tether sustains its value through the “backing of real-world assets”. Whenever new USDT tokens are issued, exactly the same amount of cash (US Dollar) or cash equivalents are added to the Tether’s reserves. In this way, the company behind USDT ensures that the Tether token remains fully backed by real-world money. Note that USDT coins are destroyed and taken out of circulation when users convert them to fiat currency.

That said, VoltCoins is an optimal crypto exchange where you can efficiently buy crypto like USDT, via multiple payment options. We have set up this platform with the very purpose to facilitate our clients and create a seamless experience for them.

A brief history of USDT

The history of Tether dates back to 2014 when three developers, namely Reeve Collins, Craig Sellars and Brock Pierce, created this token on top of Bitcoin’s blockchain using the Omni protocol. Originally named ‘Realcoin,’ the coin was later renamed USTether, and eventually Tether (USDT).

This second-layer crypto was listed on a cryptocurrency exchange for the first time in 2015, after which its trading volumes surged gradually. Moreover, with time, Tether was upgraded to work with several blockchains including Ethereum, EOS, Algorand, Tron, and OMG.

Some potential upsides of USDT

Tether is a unique token that combines the benefits of cryptocurrencies, such as decentralization and cryptographic security, with those of fiat currencies, like stability. This very property of USDT makes it a safe haven for most crypto players who rely on this asset for a variety of reasons.

Firstly, USDT serves as a remarkable alternative to the US Dollar, where users can quickly convert their crypto coins to Tether during periods of high market volatility. Moreover, most crypto enthusiasts purchase Tether from fiat currency and then later buy crypto coins via exchanging them with the USDT tokens. In this way, they lock in the stable price of the Dollar without going through the lengthy procedures of dealing with original fiat money.

Moreover, Tether carries a reputation as an “inflation hedge” because crypto saving accounts extend much higher yields than any traditional bank account. Further, the token has made fast and cheap cross-border payments possible thanks to its decentralized nature.

If you consider Tether to be a valuable asset and wish to make it a part of your portfolio, we at VoltCoins have got you covered. We maintain an advanced security system and market-leading environment, to help you buy crypto instantly and begin your digital currency journey with absolute ease.

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