What is USDT? USDT helps virtual currency players avoid erratic fluctuations of virtual currency as well as helps you to facilitate national money transfers and effectively control crypto wallets.
1. What is USDT?
- Tether coin (USDT) is a Cryptocurrency asset issued on the Bitcoin Blockchain via the Omni layer protocol (Omni is a platform for creating and trading custom digital assets or units. It is a component layer. software built on top of the Bitcoin blockchain). Each unit of USDT is backed by one USD at the Tether Limited reserve and can be redeemed via the Tether platform.
- Tether USD can be transferred, stored, spent, just like Bitcoin or any other virtual currency, users can transact and store tethers with any Omni Layer wallet like Ambisafe, Holy Transaction or Omni Wallet.
- Just like Bitcoin, Ethereum and other cryptocurrencies, users can trade, store and spend USDT. They can trade and store Tether on any Omni Layer wallet like Ambisafe, Holy Transaction or Omni.
2 .Purpose of USDT
- Make it easy for users to transact currencies between different countries, replacing current insecure wallet transactions and audits.
- Provide proof of reserve process, easily query the number of transactions with auditing tools. The total amount of USD in the reserve is also proven by auditing and exporting bank balances.
- The amount of USDT in circulation will always be equal to the amount of USD in Tether Limited. To be most transparent about the amount in the account, Tether Limited has exported the bank balance at the Transparency website. Auditors will regularly confirm and update this report.
3. How does Tether work?
- Technically, Tether operates on the Omni Platform. The platform is used for a variety of digital assets, which are anchored to the Bitcoin blockchain. After Bitcoin, Ethereum-based Tether was also released.
- Tether is maintained tied to a collateral. This means that for 1 USDT in existence, there is one US dollar being deposited in the system.
- When there is a buy transaction, Tether will generate an amount of USDT equivalent to the dollar amount you bought at the rate of 1USDT = 1 USD and vice versa, when there is a sell transaction, Tether will destroy the corresponding amount of USDT on The system is equal to the amount of USD you want to sell. This helps to ensure that the total amount of Tether circulating in the market will always be equal to the actual amount of USD deposited in the system.
4. Advantages of Tether
Stability: USDT is backed by real banks, bringing many benefits to users from cryptocurrency trading. In particular, Tether is not subject to cryptocurrency volatility.
Transparency, safety: USDT always clearly discloses the balance in the account so that the audit verifies that the reserves are always equal to the amount of USDT in circulation.
All Tether transactions are stored on public blockchains.
Transaction costs: Between two Tether accounts, transactions are completely free. Or any two people capable of storing Tether will not charge a deposit fee.
Quick access to market stability: If the price of Bitcoin or other cryptocurrency falls, investors can switch to USDT instead of trying to cash out for fiat.
Easy money transfers: USDT supports fast inter-exchange transfers, useful for arbitrage transactions between cryptocurrencies.
4. Is USDT an AltCoin?
- Tether coin management team has confirmed that USDT is not an AltCoin or a direct competitor of Bitcoin virtual currency, but this is just a payment technology that helps to supplement and support Bitcoin only.
- Simply put, USDT allows users to be attracted to the Blockchain but volatility becomes an entrance to the market.
- Thus, the emergence of Tether or USDT offers wide opportunities for Bitcoin and other CryptoCurrency.
Should I invest USDT or not?
As mentioned above, USDT is a cryptocurrency listed in USD value, that is, 1 USDT ~ 1 USD. Therefore, this coin has less volatility and lower risk compared to other virtual currencies.
Therefore, you can consider USDT as a safe haven commodity and as a currency for payment and transactions with other cryptocurrencies.
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