What is tether and how does it work? Where and how to buy tether and how to store it?
What is Tether?
Tether is a blockchain-based cryptocurrency fixed at $1. The cryptocurrency traded on the stock exchange with the symbol of USDT is also referred to as USD tether. It is in the stablecoin category due to the fixation of its value.
Created with white paper published by J. R. Willet in January 2012, tether managed to reach billions of dollars in a short time as it solved some of the crypto industry’s big problems. In the past, investors had to withdraw their money when they did not trade on crypto exchanges. This situation was quite problematic in terms of both speed and cost. However, it is now possible to stay away from high volatility with stablecoins. Today, tether is the most popular stablecoin.
Created with the principle of stability, transparency and low transaction fees, tether acts as a bridge between fiat and cryptocurrencies. In terms of market volume, more than 80 percent of trade transactions with the largest cryptocurrency, Bitcoin, are currently made with tether. This data proves the popularity of USDT.
It is possible to say that tether also provides great convenience for online payments made through crypto. Many businesses are distant from most cryptocurrencies, including bitcoin, due to high volatility. But a high volume stable asset was able to meet this need.
How and Where to Buy Tether?
The easiest way to buy tether is to sign up for a crypto exchange. You can use your fiat and crypto investments to buy USDT coins.
After completing your registration, you can start trading by creating your tether coin wallet with a few taps. Since it is fixed at 1 American dollar, you can switch to USDT during high volatility periods or when you want to protect your money from risk.
There are also different ways to get tether in your daily life. You can accept your salary on USDT or ask a friend to transfer to your tether wallet. USDT mining is not possible.
How Does Tether Work?
Tether, which is an indispensable option in daily transactions and trading, uses a one-to-one ratio with US dollars. Hong Kong-based Tether Limited is thought to hold as much fiat as the circulating USDT amount. In other words, the company acts as a trusted third party.
The Omni protocol lies behind the cryptocurrency as the technological infrastructure. Omni, a versatile platform used for a series of digital assets and currencies fixed on the bitcoin blockchain, also appears as a layer in the bitcoin infrastructure. Network security and decentralized system issues are among the most frequently asked questions about the tether network.
How to Store Tether?
As with other cryptocurrencies, ways to store tether can be categorized as cold and warm wallets.
Investors who want to keep their assets ready to trade at all times can create a tether wallet by registering on a crypto exchange. Exchange wallets are perfect for users who do not want to waste time when the market is moving.
Besides exchange wallets, there are mobile/desktop wallet applications and websites. This way, you keep your money in an online wallet. Your money will not be ready to trade, but you can send it when you are online.
It is also possible to store USDT in hardwares called cold wallets. These wallets, which are considered to be the safest way since they are an offline method, also have some risks. If the security methods offered by the hardware are not implemented, it may not possible to reach your crypto assets again. It is recommended to put your coins in cold wallets, which provide full protection against any hacking attack, that you do not intend to trade for a long time.