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What is Tether (USDT) digital currency? The best alternative to paper dollars

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مارس 3, 2023
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Tether is the third largest digital currency in the world in terms of market capitalization. Today, this cryptocurrency has worried some economists, who consider it a potential risk to financial stability. Meanwhile, some investors believe that the loss of trust in Tether could be a major risk for the crypto market.

The issues surrounding Tether have important implications for the nascent world of digital currencies. Economists are increasingly concerned that this could affect markets beyond digital currencies. Here’s everything you need to know about this controversial digital currency. Follow this article to the end.


What is Tether (USDT) digital currency?


Tether, like other digital currencies including Bitcoin and Ethereum, is a digital currency that is the third largest digital currency in the world in terms of market value. But Tether has a fundamental difference from other digital currencies such as Bitcoin, Ethereum and Tron, and that is that Tether is a type of stable coin. Stable coins are a group of digital currencies that, unlike other currencies, do not fluctuate in price. The value of these currencies is tied to real-world assets, such as the US dollar.

The price of Tether dollars is usually equal to $1, but not always. In fact, many times the fluctuations in the value of Tether have scared investors. But this fluctuation is not so much that it can be compared with the fluctuation of the price of other digital currencies such as Bitcoin. For example, when one of the most prominent stablecoins crashed in May 2022, the price of stablecoins on exchanges fluctuated and USDT briefly fell to 97 cents as people panicked and pulled their money out.

Crypto traders often use the Tether cryptocurrency to buy cryptocurrencies as an alternative to dollars. This essentially provides a way for them to seek safety in a more stable asset during times of extreme volatility in the crypto market.

However, digital currencies are still not fully accepted and many banks avoid doing business with digital currency exchanges due to the level of risk involved.


Why were stablecoins created?


Stablecoins are exciting options as a convenient payment mechanism. They can be used to settle payments as well as transfer money across the world seamlessly. Stablecoins can also be integrated into digital applications that are cross-compatible with other systems due to their open source design. They are fundamentally at odds with the closed system operations of traditional banks.

In fact, these types of assets have advantages that can be considered as the reasons for the creation of stable coins:


Stablecoins are backed by real-world assets.

They can be used for global transactions.

They have low transaction fees.

Their transfer is fast.

They support traders and investors during periods of market volatility.

Stablecoins are ideal options for cross-border payments.

They can be attached to almost any real-world asset.

With stablecoins, you can help businesses send and receive money without the need for a bank.

They increase the credibility and acceptance of digital currencies.


How is the digital currency Tether (USDT) generated?


As you know, Bitcoin is produced through a process called mining, but Tether digital currency is not like that. No centralized entity is involved in the production of digital currency such as Bitcoin, but Tether is created under the supervision of a centralized entity. Of course, since Tether transactions, like other digital currencies, are carried out on the platform of a blockchain network, it is completely decentralized. In fact, only the production of Tether is centralized, but its transfer between traders and investors will be completely decentralized. The supply of Bitcoin is limited to maintain its value. But the supply of Tether has no limits and is done according to demand.


Getting to know the types of tethers


In total, we have three types of Tether tokens, each of which belongs to a separate blockchain network. Of course, all three cases are practically the same, however, they also have differences. If you want to know the type during the USDT transaction, just look at your Tether wallet address.


Which Tether (USDT) should we use?


Although all three types of Tether digital currency are almost the same and all three of them are referred to as Tether, but since the trc20 Tether transaction has a lower fee, it is a better offer for buying and selling. At the same time, Tron network provides great support to its users. As a result, you can safely use this type of tether.


How to buy Tether (USDT) digital currency?


The easiest way for an investor to buy and sell Tether stablecoin is to use a digital currency exchange. To buy Tether, it is enough to enter the exchange and buy Tether tokens by charging rials to your account in the exchange.

On the other hand, you can buy Tether on major cryptocurrency exchanges and lending platforms. Many pay you just to store Tether on their platform. Since there is usually a high demand for Tether coins when making transactions or even digital loans, this cryptocurrency is more popular than other stablecoins such as GUSD.




Likewise, you may be able to request a higher interest rate for Tether on KuCoin, a cryptocurrency-based peer-to-peer lending platform. On that platform, Tether earns a higher interest rate than many other cryptocurrencies, including Bitcoin.


Where to buy cheap Tether (USDT)?


You can identify the cheapest price of Tether purchase by using the best Tether price service of Mihan Signal and proceed to purchase it. This interesting and new service compares the price of Tether digital currency and other top digital currencies in different exchanges and offers you the best exchange to buy or sell at the moment.


Convert Tether (USDT) to each other


You can convert all kinds of Tether tokens to each other. For this purpose, you must use a bridge or exchanges. Of course, the exchange in question must support both types of Tether in order to enable the conversion. Let’s say you want to convert ethereum network tether to Tron network tether. For this, you must first transfer your Ethereum Tether tokens to a bridge or exchange and enter the destination address as a Tron-type address. What is Binance Bridge? Zero to one hundred tutorials on how to work with Binance Bridge


Best cryptocurrency wallets for Tether (USDT)


It is possible to store Tether tokens in any type of wallet, either cold or hot. Most wallets support Tether. Among the warm or software wallets, we can mention TrustWallet, MyEtWallet, Metamask and SafePal. Now, if you want to reach a higher level of security, you can use cold or hardware wallets such as Ledger and Trezor.


Who uses Tether (USDT) the most?


Large traders such as institutional investors and digital currency exchanges can directly access Tether and other stablecoins issued by Tether. They can buy stablecoins by depositing cash and may redeem their investment by returning virtual currencies at the 1:1 exchange rate Tether promises.

Companies and institutions that are sanctioned in Iran and want to buy services or goods from abroad and do not have the possibility to exchange dollars can use its digital equivalent, stablecoins like Tether.


Investing in Tether (USDT) digital currency


It is quick and easy to exchange any digital currency with Tether, while converting a digital currency to cash takes days and transaction fees are very high. This creates liquidity for exchange platforms, creates cost-free exit strategies for investors, and adds more flexibility and stability to investors’ portfolios.

In addition, Tether can be sent anywhere in the world much faster and with lower fees than transfers at traditional banks and financial institutions. While most people don’t use Bitcoin or Ethereum for day-to-day purchases and transactions, it makes perfect sense to use Tether due to its high volatility.

According to these cases, it can be said that Tether is worth investing. While Tether is not a long-term investment that will grow your money by itself as it remains pegged to the US dollar, there are lending platforms, exchanges and wallets that offer rates for storing Tether cryptocurrency on their platform. They pay you high interest. In general, it can be said that investing in Tether is like investing in dollars. If the exchange rate of its support goes down, the owners of Tether will also lose, and if the rate of that currency rises after buying Tether, the buyers will profit.


Convert Tether (USDT) to Toman


Since the current currency of Iran is in Tomans, Iranian users usually want to know the value of their Tethers in Tomans. To convert Tether to Tomans, just multiply the number of Tether coins by the price of Tether in Tomans. Pay attention, although it is said that the price of each Tether coin is equivalent to one dollar, but the price of Tether is usually different from the price of dollars and is often higher.


Tether (USDT) scam


In recent years, there have been many discussions about Tether digital currency scams, most of the accusations are related to empty sales and lack of support. However, there are many people who know this cryptocurrency as a stable and powerful digital currency, and its trading volume is so high that it has made Tether the third largest digital currency in the world. So you should trust Tether as much as you trust other digital currencies.


US Department of Justice investigation into Tether (USDT) fraud


Bloomberg has announced that the US Department of Justice is investigating the Tether scam. After the publication of this news, Tether has described Bloomberg’s report as old news and to attract clicks. With the publication of this news, the price of Bitcoin fell by $1,000.

Meanwhile, Tether is no stranger to accusations of banking crimes, and because it is the largest stablecoin in the digital currency market, it is always subject to similar accusations.

After the recent Bloomberg report, Tether announced in its statement: “We at Tether regularly negotiate with law enforcement agencies, including the US Department of Justice, as part of our commitment to cooperation, transparency and accountability.”