What is Tether (USDT)
Tether (USDT) is the most common stablecoin in the world. As such, it meets multiple business uses, making it a key cryptocurrency in many investor strategies. Although it may be impossible to envisage a crypto market without Tether, this has not always been the case. The Tether initiative overcame a lot of criticism to make it the top spot.
Nowadays, Tether is helping to provide support and hedge against market uncertainty. It’s capable of accomplishing this mission and it’s what’s known as the Stablecoin.
How Does Stablecoins Work
Stablecoins are cryptocurrency resources that have their worth linked to outside commodities.
The benefits that these coins bring to the market are undeniable. For one, their durability tends to reduce the volatility in cryptocurrencies as a whole. Investors rely on stablecoins as a way to avoid the bearish markets without turning funds back to fiat currencies.
In most stablecoin cases, the token would have its worth added to the fiat currency. In Tether’s case, USDT exchanges its worth with the US dollar. Essentially, 1 USDT is worth $1. In addition, anyone can opt to redeem their 1$ of fiat currency by Tether Unrestricted at any time.
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