A “Tether (USDT)” is a cryptocurrency that is pegged to a fiat currency. It is a product of Hong Kong based Tether Limited. Since Tether is normally pegged to a fiat currency, then you can have Tether tokens arising when a Tether is pegged to any fiat currency in the world. However, to date, there are only two tether tokens which have been developed. These are the Tether tokens that are backed by the US dollar and the tether tokens which are backed by the euro. Those backed by the US dollar are referred to as Tether USDT while those backed by the euro are known as Tether EURT. There are also plans to have Japanese yen backed tethers.
Tether (USDT) is however the most popular. Tether EURT is yet to be included in most of the trading platforms.
The most amazing thing about tethers is that each Tether token is equivalent to the value of the fiat currency that it is pegged to. For example, one Tether USDT is equal to one US dollar (1 USDT = 1 USD). This means the prices of Tether tokens remains relatively stable.
But why use Tether?
Am sure you must be asking why this cryptocurrency is even existing if you can’t invest in it waiting for its value to rise and make profits!
But just be patient! Tethers have very important roles other than being traded.
Since we have seen that every Tether token is backed 1-to-1 by its fiat currency, it means that you can acquire as much cryptocurrencies as you want without having to pay the exaggerated taxes which is normally charged when converting fiat money to cryptocurrency coins. After converting the fiat money into the tether token, the investor can then go ahead and exchange the fiat tokens for other tradable cryptocurrency coins like Bitcoin, Ethereum, etc.
In addition, during bearish trends, investors at times tend to change their crypto coins into tether tokens so that they can wait for a better chance without completely exiting the cryptocurrency ecosystem where they would have frictions trying to deposit the money back.
Exchanges offering Tether tokens
There is a sudden rise in the appetite for Tether tokens. Millions of cryptocurrency investors are now opting to use these game changers when converting their fiat currencies into crypto coins. If you look at the market cap of a Tether token like the Tether USDT, you will realize just how much is being transferred using tethers.
There are a number of crypto markets offering Tethers and among them are: Poloniex, Bitfinex, Bittrex and Bitfinex.