Tether USDT is a cryptocurrency asset issued on the Bitcoin blockchain via the Omni Layer Protocol. Each USDT unit is backed by one US dollar which is held in the reserves of Tether Limited and can be redeemed through the Tether platform.
Have you ever wondered why Tether is such a common currency on different exchange sites? The cryptoasset market is known for its high volatility, but there are certain cryptocurrencies that maintain their stable value over time.
One of these cryptocurrencies is Tether (USDT), a stablecoin that can work on almost any blockchain whose value is always $1. Next, we will briefly explain how it works, the advantages and disadvantages of this well-known cryptocurrency.
Main features
Tether (USDT) has a number of characteristics that distinguish it from other stablecoins. Some of these features are:
Its value is stable and is maintained in a 1:1 relationship to the value of the USD
It is an open source cryptoasset that complies with all the rules and regulations that apply to them.
It does not have the volatility problems associated with the rest of the cryptocurrencies.
Each Tether is backed by its equivalent in fiat currency (USD), assets and even real-world accounts receivable.
Advantages of using Tether (USDT) in your exchanges
In the world of digital finance, using it as an exchange currency offers you many advantages, some of them are:
You can send and receive Tether anywhere in the world, thanks to the fact that it operates like any other cryptocurrency.
Its 1:1 parity with the USD makes it function as a store of value without being influenced by the volatility of the crypto market.
Thether (USDT) is accepted on almost any exchange.
Their transactions are very economical
Disadvantages of use
One of the main disadvantages of Tether (USDT) is that it is a centralized currency. On the other hand, there have been rumors for a while now that Tether Limited does not actually maintain the 1:1 relationship between cryptocurrencies and collateral.
