Have you heard of USDT? Did you know is the third most valuable cryptocurrency now? In this article, I'm gonna be explaining from A - Z what Tether is and why it was created.
Hi guys, welcome to another episode of "things you should know" where I give a comprehensive article on what a particular cryptocurrency is all about so sit back and relax because after reading this quality article you should fully understand what Tether (USDT) is.
Table of content
What is Tether (USDT)?
What are Stable Coins?
What are ERC-20 tokens?
When was USDT created?
How can I get a USDT wallet?
Can USDT be mined?
How can I buy and sell USDT?
What is Tether (USDT)?
Tether is a cryptocurrency that is pegged to USD, it is part of the Stable Coin family. Crypto coins like USDT enable easy trading for traders on an exchange to quickly buy USD with fewer fees compared to sending the funds to a bank which can take up to %10 fees.
What are Stable Coins?
Stablecoin is a type of Cryptocurrency that tries to keep a stable price with a fiat currency. Imagine a cryptocurrency that is always equal to $1 no matter the market condition.
Cryptocurrency is known for being very unstable, it can gain or drop more than %50 in less than 24 hrs. Stable coins enable cryptocurrency users who want to use cryptocurrency but not like an investment.
What is the ERC-20 token?
ERC20 tokens are used in the Ethereum platform. A wallet that supports ERC20 tokens can receive and access any type of ERC20 tokens. ERC20 wallets address are mainly used for Airdrop and ICOs. Your ERC20 wallet address is just like a normal Ethereum wallet, but it is capable of receiving multiple currencies from the Ethereum platform.
Cryptocurrencies Like USDT, Ethereum Classic, yearn.finance, Compound, and more are ERC20 tokens under the Ethereum platform.
When and why was USDT created?
Tether was created in 2014, 5 years after Bitcoin was created, Tether because the first stable cryptocurrency to exist. Stable coins like USDT is practically in every exchange, Stable Coins allow traders to trade USD in the form of Cryptocurrency without using any Bank.
How can I get a USDT wallet?
Before you can receive a cryptocurrency like USDT you would need to own a cryptocurrency wallet. Getting a crypto wallet isn't difficult, Cryptocurrency wallet like Coinbase also supports this USDT and Usdc the two top Stablecoins or you can either search "Bitcoin Cash wallet" on your Google or Appstore.
Why is USDT stable?
USD is stable because it is backed up by USD. When USDT was created it planned to be a stable cryptocurrency, the USDT token has been used to avoid regulation of USD by the government. Sometimes because of supply and demand, you might see USDT being at $0.95 - 1.06.
Can USDT be mined?
USDT is not part of the minable cryptocurrency. The only way you get USDT is by receiving it in a wallet.
How to Buy and Sell USDT?
Buying USDT directly might be a bit difficult, although you can find international apps like Luno which comes with that feature, but not that you might be charged a high amount of fee. You can also buy Bitcoin from LocalBitcoins and transfer your funds to an exchange like Binance and swap your Bitcoin to USDT. You would be charged less than %1 for the transaction.
Conclusion and things to keep in mind
USDT is a stable cryptocurrency it pegged in USD to achieve a 1:1 in price. The Tether cryptocurrency helps traders easily buy USD on an exchange without the need for a bank.
Thanks for reading this article!
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