How & Where to Buy Tether (USDT)
Use Tether: Ways to send & spend USDT
Tether Price & Information
Current USDT price and historical price chart
What is Tether
Tether (USDT) is an open source, peer-to-peer, fully decentralized cryptocurrency which is issued on the bitcoin blockchain via the Omni Layer Protocol. It is backed at a 1-to-1 ratio by USD fiat currency held by the issuing company, Tether Ltd. Users can buy Tether against fiat currencies and redeem their Tethers via the bidirectional conversion gateways provided by the issuing company. Tether can also be purchased for bitcoin and a wide variety of other cryptocurrencies.
History of Tether
Tether was founded by Reeve Collins in November 2014, an expansion of a dollar-tied currency Realcoin, launched by Brock Pierce only a few months earlier. Later in the year, Tether Limited was formed as a Hong Kong-based company, backed by owners of the Bitfinex exchange. As of May 2018, over 2.5 billion Tethers (USDT) had been minted, with almost the entire amount being used in daily circulation. In addition to also having versions backed by the euro and the yen, Tether has plans to support more national currencies as well.
How Tether Works
The workflow of Tether is relatively simple compared to most other cryptocurrencies. Fiat currency is submitted to Tether Limited, which then creates the Tethers and credits the Tether wallet of the user with a corresponding amount of USDT.
To transact with Tethers, the users follows a bitcoin-like procedure where they can send and receive Tethers from other users of this wallet. A sender submits the receiver’s wallet address and the amount of Tethers to be transferred, and the transaction takes place via a peer-to-peer, pseudonymous, open source cryptocurrency network.
To redeem and convert Tethers into fiat currency, they must be submitted to the issuing company who then credits the bank account of the user with fiat currency (USD).
Tether is not considered to be legal tender or a financial instrument but its relatively stable 1-to-1 ratio with the dollar makes it a safe haven cryptocurrency investment for those looking to avoid the volatility of most other cryptocurrencies.
Tether is a unique proposition because it is the first digital asset to be backed by real world assets. As such, it offers the following advantages over other cryptocurrencies:
- Very Stable: Tether is linked to national currencies, like the dollar, euro and yen, and the price of Tether is almost exactly equal to the price of the fiat currency. As fiat currencies don’t fluctuate much in comparison, Tether is a very stable cryptocurrency.
- Wide Acceptance: Tether is one of the most widespread digital currencies. Its bidirectional conversion is utilized at many leading exchanges (such as Bitfinex) and coin shifting services (such as ShapeShift).
- Very Safe: Tether utilizes a blockchain network similar to that of bitcoin, which renders it very secure. It meets every cryptocurrency compliance, regulation and standard, making it a very safe currency to transact or hold.
- Regular Audit & Disclosure: Tether Ltd. publishes their holdings daily and runs professional audits regularly, eliminating the risk of financial fraud. The Tethers in circulation are tallied against the reserves, daily and provided to auditors for inspection.