¿What is a
Tether?
Tether (USDT) is a token known as a stablecoin (a cryptocurrency that maintains a fixed value relative to other currencies or crypto assets), issued on the Bitcoin blockchain and launched by the company Tether Limited. It is considered the largest stable cryptocurrency issued on the market. Moreover, it is backed by the value of the U.S. dollar (USD), maintaining a 1:1 ratio—meaning 1 USDT = 1 U.S. dollar. USDT can be easily exchanged for USD at any time.
It was launched in 2015 to represent the digital crypto value of a traditional currency, namely the U.S. dollar. Tether functions like other cryptocurrencies—it operates on a decentralized network, is stored there, and all data is processed within that network.
Each USDT unit is backed by one U.S. dollar held in the reserves of Tether Limited and can be redeemed via the Tether platform. Each USDT token can be transferred, stored, and issued just like bitcoins or any other cryptocurrency.
¿How does
it work?
Tether operates using open blockchain technology, leveraging the security and transparency it provides while adhering to international standards and compliance regulations. Its main value lies in converting cash into a digital currency to anchor its value to the price of the national currency. Tether must always be backed by reserves that include traditional currency, cash equivalents, and, occasionally, other assets and receivables from Tether’s loans to third parties.
¡Relationship between
Dolar & Tether!
The stablecoin Tether (USDT) is currently one of the main channels for converting fiat currencies into cryptocurrencies. Its close 1:1 peg to the U.S. dollar makes it one of the cryptocurrencies most closely aligned with legal tender. This is because it allows users to carry out various crypto transactions and then convert their remaining balances into USD. In doing so, it preserves the value of the currency, as it is not subject to the volatility that affects most other cryptocurrencies in the market.
Holding 1 USDT is equivalent to holding 1 USD that will not lose its value. This allows access to almost any type of operation without needing to use physical dollars, as USDT can serve as a currency of equal value—with the added benefits of being a cryptocurrency, such as: higher liquidity, low transaction fees, unlimited and faster transfers anywhere in the world, and more.
¿Advantages of
use?
USDT functions like a regular cryptocurrency, with all the advantages that come with it.
It sets no limits on transfers and can be sent anywhere in the world quickly and at a low transaction cost.
Unlike other cryptocurrencies, it does not suffer from the volatility issues that typically affect the crypto market. This is because its value is pegged to the U.S. dollar, providing the benefit of making crypto payments at a stable and predictable currency value.
USDT also enables buy and sell operations within exchange platforms while maintaining the value of your investments. You can perform transactions in various cryptocurrencies and then easily convert any remaining balance into USDT.
Since it is directly linked to the U.S. dollar, this stablecoin allows users to operate at the USD rate and always know the real value of their holdings.