What is Tether (USDT)?

Tether (USDT) is the world’s first stablecoin (a cryptocurrency that mimics the value of a fiat currency). It was initially released in 2014 under Realcoin by Bitcoin investor Brock Pierce, entrepreneur Reeve Collins, and software developer Craig Sellers.

USDT was initially issued on the bitcoin protocol through the Omni Layer, but it has since then migrated to other blockchains. It’s also issued on several other blockchains, including TRON, EOS, Algorand, Solana, and the OMG Network.

Like other stablecoins, USDT is helpful for trading cryptocurrencies as it allows traders to avoid market volatility that is common to BTC and other crypto assets. Using stablecoins also removes the extra costs and delays of converting between crypto and fiat currencies.

How Does Tether Work?

When a user deposits fiat currency into Tether’s reserve, selling fiat to buy USDT, Tether then issues the corresponding digital amount in tokens. The USDT can then be sent, stored, or exchanged.

If a user deposits $100 in the Tether reserve, then in keeping with a 1-to-1 dollar parity, they will receive 100 Tether tokens. Tether coins are destroyed and removed from circulation when users redeem the tokens for fiat currency.

Tether moves across blockchains like many other digital currencies. There are Tether tokens available on various blockchains, such as the original one with Omni on the Bitcoin platform as well as Liquid, in addition to Ethereum (ETH) and TRON (TRX), among others.

How was Tether created?

Tether was created as an attempt to solve two major issues with existing cryptocurrencies: high volatility and convertibility between fiat currencies and cryptocurrencies. To address these perceived issues Tether created a cryptocurrency that is fully backed 1:1 by deposits of U.S. dollars held at banks. On Ethereum, USDT tokens are represented as ERC-20 tokens, while on Bitcoin, Tether utilizes the Omni layer, to represent USDT tokens. While the tokens themselves operate in a decentralized network, Hong Kong-based Tether Ltd is solely responsible for creating and redeeming tokens as well as maintaining the 1:1 deposit backing.

Where can I buy Tether USD?

Usdt can be purchased on most cryptocurrency exchanges. You need to choose an exchange that operates and can be traded in your local jurisdiction. Then open an account on the platform. Make sure to choose a reliable trading platform. FGS is the most convenient stable currency trading platform today. You can directly choose your local legal tender to buy usdt in FGS global market and enjoy zero transaction fee.