Tether cryptocurrency guide advises where to buy and how to buy Tether. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about Tether as well its status in the world of cryptocurrencies.
- 1 What Is Tether?
- 2 Beginner's Guide to Tether
- 3 Where and How to Buy Tether?
- 4 Tether Markets
- 5 Where to Spend or Use Tether?
- 6 How Does Tether Work?
- 7 Tether Regulation
- 8 Is Tether Secure?
- 9 History of Tether
- 10 Tether Videos and Tutorials
- 11 See Also
What Is Tether?
Tether is a cryptocurrency similar to the other cryptocurrency coins such as Bitcoin, Ripple, Ethereum and many more. It is also promoted as the money built for the internet users. However, unlike the other coins whose price constantly goes up and down the price of Tether is rather stable. This feature helps tether stand out among other coins.
The creator of this coin claim that Tether is a cryptocurrency pegged to traditional fiat currencies and backed 1:1. Presently, the tether is being backed only by US dollar and it is denoted by the symbol USDT. However, other countries such as England and Japan are all set to release their tether coins. The Japanese tether token is being named Japanese Yen (JPYT) will soon going to be released in the market. Tether token reserves are being promised to audit by the tether foundation. The primary goal of this token is to facilitate a fixed-rate transaction between the crypto exchange platforms.
According to a report published on 15 Feb 2018, Tether has the world's 15th highest market cap among cryptocurrencies around the world. This cryptocurrency has amassed 2 billion dollars up till 5 Feb 2018. It goes on to prove that the popularity of the tether coin is steadily increasing.
Primarily the tether tokens are being issued by the tether limited.
Beginner's Guide to Tether
Cryptocurrency is the aggressive phenomenon today which has completely changed the investors and organizations life as the virtual currency has completely removed the physical barriers and bind the world together. We are surrounded by many types of cryptocurrencies like Bitcoin, Ethereum, Litecoin and the list goes on. But Tether has still been able to attract the investors as it is the asset-pegged currency which executes the transactions at 1:1 ratio. This fact has made the Tether a preferable cryptocurrency. Moreover, the compliance and alliances with different financial institutions have given a strong base to this platform.
Since the Bitcoin emerged in the market the digital currency industry and exchange platforms have got a boom in the market. The recent trend people follow is to take risks and get higher returns in short duration rather than keeping their vaults safe in terms of gold or silver. Thus, the cryptocurrency has got the great potential in the market today.
Not only, Bitcoin or Ether, investors are looking for other cryptos which might possess great potential in the future ahead. Tether is among one of them. But before investing in the new cryptocurrency, individuals desire to know all about that. What defines Tether? How to invest in Tether? What is its potential? What are the risks associated with it?
The investors are wary about the new emerging currencies performance. Thus, they look for a guide to look into the currencies prospective. Also, the guide seems to be the best way to get the answer to each and every question which stops them to move in the forward direction. Here, they can get the complete analysis of the currency and easily get all the required information before investing their money. Have a look and analyze yourself about all the aspects of Tether and then make a decision accustomed to your needs and requirements.
Where and How to Buy Tether?
As an asset-pegged currency, Tether is the ultimate option for the users who want to invest in cryptocurrency at the same value as dollar provides. In fact, Tether’s demand is increasing at a rapid rate. In 2017, its trading volume has exceeded its market capitalization value. Thus, cryptocurrency is on the verge of expansion nowadays.
The process of investing and trading in Tether is very simple and the prices are also maintained by the market conditions i.e. demand and supply. The supply of Tether is also limited and the prices are not much high which makes it an interesting cryptocurrency to invest in.
Here are following places which facilitates the buying and trading of Tether:-
- Cryptocurrency Exchange Platforms
Cryptocurrency exchange platforms are the best marketplaces for buying and selling in cryptocurrencies. Moreover, these let the users buy the currencies at affordable market prices. The cryptocurrencies are mostly anonymous, but exchanges are maintained by the organizations. These exchanges ask for the verification of the details which maintain the transparency and integrity of the platform.
The details can be of any kind i.e. email, address, phone number etc. Also, the transaction fee charges play a great role in determining the user’s choice of exchange platforms.
There are many exchange platforms which facilitate the buying and trading of Tether such as Bitfinex, Kraken, and Poloniex etc.
- Brokerage Firms
The cryptocurrency exchanges and the brokerage platforms are operational in the same manner. But the major difference is that brokerage firms charge their own fee and doesn’t move according to the market’s economic conditions. Also, the users must keep an eye on whether the brokerage firms are not charging any extra fees for their services. It should be justifiable. The brokerage firms which enable the transaction in Tether are Plus500 and Etoro.
- Cryptocurrency Wallets
There is also a facility of wallets which lets the user store the currency and also to access the services of peer-to-peer networking. Having wallets is a pre-requisite of trading in the cryptocurrency. Tether.to wallet is a reliable, secure, and transparent platform.
- Cryptocurrency ATMs
Nowadays, there is an ATM facility which directly lets the user get the cryptocurrency tokens through machines. All one need is to put the fiat currency into the machine and the type of the cryptocurrency into which they want to get their fiat currency exchanged.
Wallets are basically used for storing the cryptocurrency. Tether wallet has been programmed and designed by Freewallet team which enables the storing, sending and receiving the currency. Some of its following attributes make it an excellent framework-
- For any wallet to be productive the two-factor authentication and multi-signature seem to be the prerequisite features and unfortunately, Tether wallet acquires these attributes. In fact, the cold storage options, QR code scanning are some of the other characteristics of Tether which ensures its transparency and integrity.
- The 24*7 customer care service makes the Tether accountable. Moreover, the Tether wallet is user-friendly. The users also get the notifications of all kind of transactions executed on their email addresses. If someone loses his device, he can freely approach it through any other device and freeze the existing account.
- Also, it can be accessed from any device i.e. mobile, desktop or paper which expands its scope and its programming being done in a way to make it comply with many languages such as Chinese, English, German, French, and Spanish which also widens its horizon. It can be used in both the modes i.e. offline and online.
- Tether wallets can be easily installed on the computing devices using Freewallet application. Tether wallet’s interface is in compliance with Google+, Facebook or even user’s mobile number which is the main concern for the individuals. Thus, it provides ease to the customers in every way possible. The wallet can also be purchased using its website Tether.to and some exchanges like Bitfinex also facilitates the buying of Tether.
- The wallet’s address can easily be shared with friends or family members using Twitter, Facebook or Email.
- The wallet updating process is absolutely automatized and standardized according to the USDT market price charts. The Pin code and Touch ID provides it a better security. The system is completely decentralized which augments its safety. Moreover, the user can add the security layers by integrating it with his personal email address or mobile number.
- It can store the currency in any form i.e. either dollars or cryptocurrency. Tether also enables the transaction to be done in any kind of currency.
- The transactions using Tether wallet are absolutely free from malicious attacks and completely free of charge. Even the transactions are performed with the blink of an eye, thus it is right to say that the execution rate is very fast.
Where to Buy Tether with Credit Card?
Tether is an asset-pegged cryptocurrency which means that the dollars are reserved and each reserved dollar contains a value i.e. 1 USDT= 1USD$. Further for each reserved dollar, cryptocurrency is issued at the fixed rate. There are many exchanges such as Kraken, Bittrex, and HitBTC etc which enable the buying of Tether but the two currency exchange platforms i.e. Poloniex and Bitfinex exclusively support Tether’s purchase.
Even Tether can also be bought using the credit/debit cards on the Tether’s website but first, it requires some KYC norms to be fulfilled by the user. Some exchanges enable the purchase free of cost while some charge fee such as CEX.io that charge the fee at 3.5% interest rate and even it asks for the user ID to be verified before executing the transaction.
Tether cryptocurrency can easily be bought through various measures but every way requires some procedure to be followed. The following exchanges provide the conversion of USD Tether into stable digital currencies:-
- Poloniex: The Poloniex platform allows the conversion of stable currencies such as USD, EUR, JPY into one-to-one backed cryptocurrency i.e. Tether USD. The integration of Tether with Poloniex is considered to be a major step taken towards the expansion of Tether.
- Bitfinex: Bitfinex is known to be the largest currency exchange platform in the world. It generally operates in the digital mode and widely used for converting US dollars into cryptocurrency. Now Tether has also collaborated with Bitfinex.
- Kraken: Kraken is a platform which also allows the exchange of fiat currency into cryptocurrency. All the individual need is to sign up with the Kraken account and provide some necessary details and make use of the services further.
- Bittrex: It provides the USDT equivalent value in exchange for any kind of cryptocurrency which can then be converted into normal currencies by using platforms like Coinbase. Thus, Bittrex provides the conversion to take place in an indirect manner.
These exchange platforms are necessary to let the conversion take place. One should always rely on these platforms as they are backed by rules and regulations which don’t possess the risks. Ultimately, this prevents the user’s money from any kind of fraudulent activities such as hacking, phishing etc or any third-party attacks.
Where to Buy Tether with PayPal?
PayPal is a digital platform which facilitates the exchange of fiat currency into cryptocurrency. Now, it has become the world’s largest currency exchange platform. PayPal also facilitates the purchase of Tether cryptocurrency. In fact, it can be used directly to exchange the currency for fiat currency. Otherwise, the indirect method can also be used i.e. connecting PayPal to the credit/debit card can also be one of the alternatives for buying Tether.
How to Buy Tether with Wire Transfer?
Wire transfer is a concept which is analogous to the transactions that take place through one bank account to another bank account. The direct wire transfer is not applicable to the direct conversion of USDT into USD ($). However, there are some platforms which also enable the wire transfer for Tether currency. It includes:-
- Kraken: The user can simply send the money to Kraken and get his currency exchanged into Tether. This is one of the best exchanges which provide the direct and fast conversion that benefit crypto traders.
- Bitfinex: As Bitfinex has become the largest exchanging platform, it enables many types of currencies to get exchanged into cryptocurrencies or vice-versa. It also facilitates the direct conversion of US dollars into Tether.
Some other platforms such as Binance, Bittrex etc are in existence nowadays but they don’t provide the straight conversion of currencies into Tether. Wire Transfer doesn’t provide many possibilities thus only the indirect conversion takes place in an easy manner.
Earlier it was known to be an Altcoin and usually termed as ‘Real Coin’. Then the developers changed its name and renamed it as ‘Tether’. When Tether was launched, it was not popular in the field of cryptocurrency. But now it has become the world’s third largest trading cryptocurrency. It is on the path of becoming the world’s largest cryptocurrency surpassing the Bitcoin and Ethereum. The importance of Tether in the market is increasing due to its value which is equivalent to a dollar.
There are many exchange platforms which enable the trade in Tether. In fact, Tether has facilitated the individuals to trade on those currency exchange platforms which don’t accept the fiat currency as USDT and USD$ are both equal in values. There Tether is used and makes the transaction process easier.
Tethers can be used for many purposes like storing the currency in terms of Tether, can facilitate the payments to vendors, or use it for further selling. There are some specific exchanges which only trade in Tether ad also ones who accept all types of cryptocurrencies. But the user especially looks for those exchanges which are easily approachable and also charge the negligible transaction fee.
Here are some exchange platforms which provide the facility of selling and trading in Tether:-
- Bitfinex: The world’s largest trading platform is directly associated with Tether as the CEO of both the firm is same. Thus, the interface and architect of both Tether and Bitfinex is compatible with each other. Thus, the advanced infrastructure has increased its usage in the cryptocurrency world. This platform has been developed by the developers in a way that all the loopholes have been removed which were present in the existing platforms.
- Poloniex: Poloniex has been the fastest and direct-trading U.S. based platform which is user-friendly. It enables the two-factor authentication and multi-signature attributes which have maintained the transparency and integrity of the platform. The most used platform trading and selling Tether is Poloniex.
- Etoro: It is the leading platform in the market which currently possesses more than 4.5 million traders. It also provides the payment services for online education and webinars. Even the deposits and withdrawal transaction fee is zero. This feature makes it preferable over other platforms.
- IQOption: This is considered to be the stylish and strong platform which enables the trading in more than 12 cryptocurrencies. It also facilitates the Forex, ETF, and Stocks Trading. The minimum deposit to use IQ Option service is 10$.
- Plus500: The plus500 platform team developers have used the advanced tools and technologies while designing it. Thus, it is a widely used platform. Moreover, there is no minimum amount to be deposited while availing the services. Also, no commission is charged while obtaining the broker information.
- Bittrex: It is the platform which lets the user exchange in different kinds of cryptocurrencies rather than fiat currency. Thus, to get the same value as the dollar, Tether is the best option to be used. It enables the transaction execution in an indirect way.
- ETX Capital: This platform further provides the choice among other platforms. It is a trusted entity which complies with FCA guidelines. It also provides the user with many alternatives such as either he wants to go for Forex trading, or trade in Stocks/Options.
- Kraken: This platform enables the exchange of fiat currency into cryptocurrencies. Also, this platform is bounded by laws and regulations which make it a secure platform. In fact, creating the account on Kraken and then using it for further transaction purposes has made it a trust-worthy platform.
Apart from the exchange platforms Tether wallets seem to be the best alternative to sell and trade Tethers. It is the easiest way for trading as it enables the peer-to-peer network. In fact, some exchanges ask for acquiring the wallets before availing the services of the platform. These wallets are free of charge and easily approachable. Moreover, their interface is user-friendly i.e. the novice users can easily access it and avail the services.
How Much Are the Transaction Fees of Tether?
Individuals are pulled towards cryptocurrencies because the transaction fee is either zero or negligible through executing them in cryptocurrency. In fact, cryptocurrencies bypass the usage of banks in between and enable the direct transfer of currency from one account to another account.
The transactions done from Tether.to wallet to different platforms incur the following fee charges are as follows- Tether does not charge any fee if transactions are performed using Tether.to wallet. This is the biggest advantage and the reason going for Tether. But at the same time, there is a demerit associated with it i.e. the individuals can perform only one withdrawal in a day. Thus, to do more transactions, the user should go other wallets like Omnicore which Tether also suggests. In fact, many exchange partners can also be contacted but involving the third-party in the transaction might sometimes don’t suit to the investor as they don’t seem trust-worthy to the users.
When the payment is transacted to Tether-enabled Blockchain Wallet, Tether does not incur any charges. This also comes with a condition that if Tether is transacted to different platforms other than Tether wallet, then charges are incurred according to those platforms.
The bank accounts transfer incurs different charges than a wallet to wallet transfer. The average fee for 1 transaction is either $20 USD or 10 basis points. It depends on the fact that what is the highest amount to be transacted. It applies to all the wallets and bank account transactions.
Thus, if the user wants to transact freely, he must go for Tether wallet which is a totally secured and transparent platform. In fact, Tether wallet has many advantages i.e. the Omni Layer protocol integration make it a preferable wallet than other wallets.
There are endless ways to get Tethers. One can easily get the coins by participating in mining, earn as rewards through relatives or friends, or through trading in cryptocurrencies. The Tether markets places facilitate the buying, trading or even know about the current prices and trends of it.
But there always a question arises that which market is suitable for trading in Tether. It depends on many factors because every user needs the different feature like some ask for security while some look for those exchanges which charge the negligible fee. There are many attributes which one should look for while choosing one market-
- When the exchanges or markets allow the users to transact in Tether, they charge some fee for them. But the fee should be minimal while using these networks for the transaction in cryptocurrencies.
- The exchange platforms always ask for some kind of verification details and if they don’t then there is something fishy. But on the other hand, it should not be the way like the verifying process is consuming the user’s precious time and taking too long to let the user finally transact in.
- The markets should be constituted of simple interfaces and processes should be quite easy to understand.
- The market should be free from any kind of restrictions so that the people can exchange their currencies in any country of the world.
- The market should possess the advanced features so that the users can get the proper analysis of each attribute they want to look for.
Apart from the above traits, a market should always be compliant with two-factor authentication or multi-signature features so that user’s funds remain protected and safe.
Value of Tether
The asset pegged cryptocurrency i.e. Tether was established in the year 2014. But at that time it was not of greater value as it is today. Nowadays it has come in the category of top three cryptocurrencies in the world. The value of Tether is equivalent to one dollar. This fact has rapidly increased its strength. With each passing day, its usage is increasing. That day is not far away when Tether takes the place of Bitcoin and become the number one in the world. Tether’s attributes and traits are more user-friendly and its integration with the recent technical developments i.e. blockchain and Omni Layer protocol has made it a secure and reliable cryptocurrency.
The total supply of Tether from the year 2016 has increased from $6.9 million to $645 million in 2017. It clearly shows the 100% increment in the supply. In fact, an increment of $200 million in the market supply just happened in 15 day period. The trading volume ($2,665,760,000 USD) which Tether acquires has already crossed the market capitalization of Tether i.e. $2,215,967,946 USD. The total supply of Tethers is USD 2,280,109,970. The current value of Tether is $0.999471 USD i.e. approximately equivalent to $1.
The fast growth in value and supply of Tethers has shown that it can easily surpass the two largest cryptocurrencies i.e. Bitcoin and Ethereum. The strong network has been developed by the team which has increased its value and made it a reliable network. The stability of the Tether value and less volatility has made investors interested in the currency.
It is distinctive and unique in comparison to other cryptocurrencies. In fact, the developers are in no way trying to make money out of any increment in Tether’s value. It is strictly regulated currency. The regular audits by financial institutions and government agencies have provided it reliability and safety. Moreover, Tether provides the real-value which other cryptocurrencies don’t provide. The open-source blockchain technology has augmented its value.
Is It Profitable to Invest in Tether?
Tether (USDT) is really an interesting cryptocurrency. It is rather different than other cryptocurrencies as in most other cryptocurrencies only exist in the crypto space and there is a separation between fiat currencies and virtual currencies such as US Dollars. There is no bridge between the two and this is what Tether was more or less successful at doing i.e. Tether works as a bridge between the two currencies.
The idea behind Tether is that for every one tether that exists in the crypto world there is one US Dollar to back up that tether sitting in the reserves in tether’s bank account ready to be redeemed one-to-one at any point. This has some interesting uses both for the users of cryptocurrency and the exchanger.
For the User, it means that if he wants to move what essentially a US Dollar around he can move it using the USDT i.e. Tether. So if you want to go for one exchange to the other, he can go for the USDT and skip the regular banking system. So it acts as a stable currency as tether converts cash into digital currency, to anchor or tether the value to the price of national currencies like US Dollar the Euro and the Yen.
What tether can offer to the exchanger is that kind of the on-ramp into the crypto world.
“You get a stable exchange rate that is typical for fiat currencies and at the same time you have an opportunity to make easy and instant transactions people appreciate with cryptocurrencies.”- says Paul Vernon.
Speaking about the advantages of Tether, USD is the most stable currency in the world ad USDT is directly bound to the USD Dollar. It means using tether you never need to worry about currency exchange rate and you do not need to put any funds at risk. This is the reason why Tether is the safest digital currency nowadays.
Tether also has quite a larger number of international partners like Ambisafe, Poloniex, Space shift and others. So it provides the assurance to the young and transformational services.
Tether provides API Support and well-developed system of electronic wallets and it also has a great customer support service. Currently, it is only available in English but the customer support service itself is really helpful. Tether serves as a transparent service which imposes no hidden fees or commissions to its customers.
In the end, Tether is rather a risky asset like many other innovative projects in the market but as we learn more about Tether we will find out that this service is well grounded and intended for the future.
Where to Spend or Use Tether?
The most important question which comes to an investor’s mind is that where they can spend their coins? The question is generally followed after the process of mining or when the sender sends Tether tokens you’re your wallet. But some people are not able to get into the cryptocurrency world as they might be dealing with different coins.
Tether team has made it possible to associate with different institutions so that Tether’s reach gets widen. Although Tether is not accepted at every exchange platform yet one can pay to different vendors in Tethers. Some of them have the condition of accepting from the wallet.
Can Tether Grow to Become a Major Payment Network?
Cryptocurrency has become the hot topic nowadays in the market. Every investor wants to invest in cryptocurrency and earn high profits. Bitcoin has gained the highest popularity among all cryptocurrencies. In layman’s language, it can be said that Bitcoin is another name of cryptocurrency. But this doesn’t imply that other cryptocurrencies have no value in the market. Rather every platform has got its own merits and thus can be used in different scenarios. Therefore, Tether’s popularity is increasing day-by-day due to its advantageous nature.
There are many factors which clearly show the bright future of Tether. Some of them are as follows-
- Firstly, the security of the platform i.e. integration with blockchain technology and Omni Layer protocol attracts the investors. It seems better than Bitcoin even as there is a proof that Bitcoin was attacked by DAO a few years back. Thus, the security attribute which Tether possesses make Tether preferable than other cryptocurrencies.
- The real value in terms of dollars is provided but Tether which no other cryptocurrency provides. One USDT is equivalent to one USD$. It has widely increased the usage of Tether. In fact, last year the trading volume of Tether crossed the Tether’s market capitalization value.
- The association with Bitfinex i.e. the world’s largest trading platform has made Tether popular among users. Being owned by the same CEO, both the firms have got same infrastructure and architect which has gained impression in eyes of investors. Moreover, it has increased the reliability of Tether among investors.
- The usage of Tether on those platforms which don’t give the access to exchange for fiat currencies such as Dollars or Euros. There Tether is the most used cryptocurrency as it has the same value which dollars provide.
- Different kinds of platforms are in networking with Tether. Tether is an asset-pegged cryptocurrency which can be used across several platforms and used for many purposes like storing for getting higher returns, paying or selling etc. Moreover, tether’s main area is Tether.to wallet which is completely secure and reliable platform for peer-to-peer transactions. There is no transaction fee charged using Tether wallet.
The potential to remain absolutely secure in the midst of originating security threats ensures the growing aspect of Tether. Also, whatever rumors spread about Tether and allegations put over Tether has been proven wrong by the developers which have further created trust among investors. In fact, nowadays financial audits through big institutions have also been conducted which are likely to put a positive impact on investor’s minds.
How Does Tether Work?
Blockchain Technology has nearly been successful in solving all the problems today. It has provided some security attributes to digital currency world which has further supplemented its purpose. Cryptocurrencies enable the peer-to-peer transaction payments. Tether also facilitates the peer-to-peer transactions.
The way how Tether perform its operations is explained in different forms:-
A Tether Technology
The technology used in Tether is fragmented into three different layers-
- Blockchain Technology: The blockchain technology is the first layer in the network. There is a transactional ledger which is integrated into the blockchain technology and work as meta-data through the installed system.
- Omni Layer Protocol: Omni Layer is the foundation of the Tether platform. It can create and destroy the digital tokens which are represented as meta-data in the blockchain. Omnichest.info enables the routing and dissemination of Tethers. It facilitates the storage of Tether and transacts in an open-source system.
- Tether Limited: Tethers are issued in exchange for fiat currency. It enables the withdrawing, storing, sending, and receiving the currencies. All the association and integration with different institutions are managed by Tether Limited. The audits performed by the institutions are all handled by Tether Limited. It is considered to be the major pillar of Tether platform.
B Funds Flowing Process
The whole process is carried out in different steps:
- Firstly, users are required to deposit the currency into the bank account.
- Tether Limited enables the generation of the individual’s account. The principle followed is that the funds issued by Tether Limited are equivalent to funds deposited by the user.
- Finally, the transaction starts. The peer-to-peer transaction opens the path for the users to send and receive the currency.
- The users now get the redemption of the physical currency they have deposited in.
- Finally, the last step is the Tethers which were issued get destroyed and again the fiat currency is sent back to the individual’s bank account.
Apart from this process, users can transact in Tethers through currency exchange platforms. In fact, Tether is associated with the largest network i.e. Bitfinex. But the flow of funds process shows that Tether Limited is the only agency which enables the Tether circulation in the market.
C Proof of Reserves
This is the ultimate protocol or algorithm on which the whole Tether’s system is based because maintaining the solvency of the platform seems to be thegreatest task of any network associated with currency. The wallets and exchanges which provide the facility of payments are not much reliable and safe.
Thus, Proof of Reserves and Proof of Solvency are the necessary protocols to be used in the network. This process proves that Tether has backing reserves. It is exchanged for the same value of U.S. Dollars. Therefore, Tethers can be anytime checked for maintaining its integrity. The Proof of Reserves helps in providing the balance sheets and profit and loss account to the auditors.
These three processes and algorithms are the backbone of Tether Limited. It ensures the transparency, integrity, and reliability of the platform. Moreover, Tether is an asset-pegged cryptocurrency which assures the investors that the platform is absolutely reserved as whatever currency is circulated is equivalent to the fiat currency available.
Although the whole process cannot go absolutely free from malicious attacks or third-party interferences yet the security protocols and algorithms, blockchain technology, and Omni Layer protocol makes it difficult for the criminals to enter and steal the funds. Moreover, the compliance with KYC or AML guidelines provides the strength to the network. The association with several banks such as Cathay United Bank and Hwatai Bank helps in smooth functioning of the Tether.
Does Tether Use Blockchain Technology?
Blockchain Technology uses the cryptographic algorithm to create the list of records which are generally known as’ blocks’. It is the backbone of cryptocurrency because it has enabled the absolute security and transparency of the cryptocurrency platform.
Yes, Tether also uses blockchain technology. It also uses the Omni Layer protocol to increase the security levels of the framework. In fact, the blockchain technology attributes have been changed accordingly to the Tether’s requirements. The algorithms and protocols integrated with the blockchain technology provide it a greater security terms and conditions. The integration of blockchain technology and virtual currency has revolutionized the market of cryptocurrency and enabled many features such as-
- The blockchain technology used in Tether has made it completely free of cost for any user i.e. to use it without any transaction charges incurred.
- As we see that most of the cryptocurrencies today are not stable and fluctuate with the rising demand and supply of the market but Tether is an asset-pegged cryptocurrency which is rather more stable than the expected scenario.
- The blockchain network has enabled the creator to maintain the transparency and integrity of the platform as it facilitates the smart contracts.
- The numbers of platforms such as Bitfinex, GoCoin etc. are also based on blockchain technology which further improves the safety trait of the transaction execution through Tether.to wallets?
- In fact, the blockchain technology has made the platform more reliable and transparent as whatever are the reserve holdings each day, they are shown on the webpages and audited by the financial institutions.
The mining process simply means that the transactions will be verified and evaluated and further attached to the public ledger which is termed as blockchain and the new coins will be released. The complete process means that all the transactions will be compiled at once and then using the algorithms and protocols the problems will be solved. The widely used method to obtain the Tethers is ‘mining’. But the Tether mining process is not developed as compared to the other cryptocurrencies. And, Tether uses proof-of-reserves for mining.
What Are the Advantages of Tether?
In 2015, Tether was established and launched by Freewallet team. A Chinese company was established in the name of Tether Limited. Since then USDT is in circulation in the market and about 20 to 40 million valued transactions are carried out every day. The expansion is increasing because of its advantageous nature-
- Regulated Platform
The framework is being regularly audited by Tether Limited which makes it free from any kind of fraudulent activities. The collaboration with big financial institutions has provided it a safe and secure platform. The association exchange platforms augment its consistency and reliability and make it a trusted currency.
Tether cryptocurrency uses the blockchain network which is in compliance with the norms and regulations. Thus, Tether has become a transparent and reliable currency to execute transactions in. The protocols and algorithms used in the network provide the better security features to the Tether cryptocurrency. The firewall has enabled the protection from malicious attacks and cyber-attacks.
- Extensively Used
Tether is in circulation in the whole world as many platforms enable the exchange of fiat currency into cryptocurrency or vice-versa. Thus, the two-way conversion increases its scope in the market. Even the interface simplicity has made it a widely accepted currency. The complexities have been reduced through various programming codes used in the Tether framework.
Tether is a currency which possesses minimum risks and fluctuations. Thus, the association with the world’s stable currencies such as USD, EUR provides it stability. The 1:1 conversion rate is applicable for Tether currency exchange transactions. In fact, it does help in preventing the creation of market risky situations and conditions.
Tether has been integrated with the blockchain technology and smart contracts which maintains its transparency and integrity. The framework is user-friendly and convenient to the user which further increases its worldwide acceptance. Even the beginners can also access the platform.
One of the most important benefits of this tether coin is that it has brought the much-needed transparency in the crypto world. Often people hesitate to invest in the cryptocurrency because of transparency issue. However, the advantage of the tether tokens is that these coins are backed by the U.S dollar. Moreover, the price of a token is equivalent to a $1 dollar which washes away all kind of doubts in the buyer's mind. He is well aware of the price of the coins he is purchasing. Moreover, the tether limited has promised to control and manage the coins reserve every now and then which is also increase the transparency. The company shares the detail of all coins in transaction publicly which reaffirms people believe in the cryptocurrency. This currency is tied to the actual world currency so it is not volatile or is shielded against volatility
- Fiat Currency
Unlike other coins where you have to use crypto coins to purchase and sell on the online world, however, in case of tether; since it is fiat currency so you can also use it in the electronic form as well which is a great thing. Another benefit of the tether coins is that they use bitcoin blockchain network which is already tested and secured rather than using a newly developed platform. This gives users a sense of security that their money is in safe hand. Since we know that blockchain is an extremely safe technology and it is immensely hard to break in this system. Thus, you need not to anxious about your coins.
- Almost no market fear
It is common to hear stories around us people getting sad and worried after investing their money in the crypto coins. Since it is quite uncertain industry and anything is possible on any given day so you have to be careful while putting your money to purchase coins. However, in the case of tether, one need not to be worried about the tumultuous market situation. The value of the tether coin is already being fixed which is equivalent to $1 dollar (USDT). And the value of the coin will remain the same and it won't change whatever happens in the market. The sole purpose of the tether coin is to preserve the coin and its value and use it to buy other cryptocurrency coin when necessary. Thus, it is one of the great advantages of tether. However, those who are looking to earn instant money or want to get rich in no time should avoid investing in the tether coin because profit is limited in this type of coin. Apparently, the price of this coin is pegged to the US dollar and it could not go beyond the $1 dollar so you can't make quick money from it.
- Customer Service
The tether limited has hired a team of experts who will help you at every step. The 24X7 customer service is excellent and good. However, as of now, they provide support only in the English language. Moreover, there is a small fee which you need to pay, but if you are transferring coins from one tether wallet to other then you need not to pay anything.
- Reliable and Secure
The tether works on the blockchain network that makes it one of the most secure network. Thus, while purchasing or selling coins on the network, you need not to be worried about the security. Moreover, the company also adheres to the KYC and AML guidelines which further solidify its security. Hence, every person who wants to have an account is required to provide their KYC and AML documents. In case, if you fail to do so, then it is impossible to trade on the platform. However, some experts consider it as a drawback.
Apart from these advantages Tether also acquires some attributes which leverage its position in the market such as Omni Layer protocol integration which makes it a decentralized system. In fact, the multiple security layers supplement its encryption technology. Moreover, no discrimination among merchants, exchanges, and wallets augment its versatile and universal behavior. There are no physical barriers which ultimately makes it a preferable cryptocurrency. In the coming future, Tether is on the path of becoming a legitimate entity.
What Are the Risks of Tether?
Tether is an asset pegged cryptocurrency which is backed by US Dollars at 1:1 ratio. It gives the exact value we invest in i.e. if we invest one US dollar we get one USDT. In fact, Tether is also used for trading purposes on platforms such as Binance and OKex which don’t accept the physical currency i.e. Dollars or Euros. Thus, at those platforms Tether is being used because it provides the same value the dollar provides. Tether has become the third world’s largest cryptocurrency and even it’s on the verge of surpassing Bitcoin and Ethereum.
There are always some risks associated with investing and trading in cryptocurrency. The risks can be of many types such as the cyber-attacks, market ups, and downs, wrong information about receiver etc. All these threats have lower down the interest of investors to trade in cryptocurrencies.
Tether also possess some risks like other cryptocurrencies:-
- Market Fluctuations: As the dollar’s value keeps on changing according to market supply and demand change the Tether changes accordingly. There is always a risk of market fluctuations associated with the cryptocurrency. This is not just the case with Tether but each and every cryptocurrency. Tether also carries the potential of creating the liquidity trap in the market. In fact, the trading volume of Tether has always been more than the market capitalization value of Tether.
- Technology: The technology used in the cryptocurrency has recently been introduced in the market. Thus, no one is known to its demerits and threats associated with it. Although the creators and designers have paid attention to the integrity and transparency of the blockchain technology yet there can be some loopholes which are still to be filled. The most used cryptocurrencies such as Ether have faced the DAO cyber-attacks and then hard-fork changes had to be done to remove those loopholes. Therefore, there is no guarantee that Tether is absolutely secure.
- Irreversibility: The transactions executed cannot be reversed back. After all, the human beings perform the tasks and the payments are sent manually. Thus, there are chances of errors being done such as putting the wrong address of the receiver, paying to the wrong person etc. Moreover, this error cannot be corrected in any way. Once the amount is gone, it cannot be recovered back. Thus the only possibility is that the users pay more attention while executing the transactions.
- Strict Regulations: There are no regulated agencies being associated with Tether. Even if the user wants to communicate with the developers or team members, there is no direct way out to contact them. Most of the countries have still not legally accepted the cryptocurrencies which seem to be a great risk to investor’s funds.
- Loss of Coins: The cryptocurrencies are stored in the wallets such as tethers are kept in Tether.to wallet. The way to access the wallet are the two keys i.e. the private key and the public key is given to the user after he/she creates the account and approach the wallet services. But the private key or public key can be lost through hacking, phishing etc. Thus, the user should keep the keys in a secure manner. Also, he should not disclose the key particulars to anyone.
- Forth-coming Cryptocurrencies: With each passing day, the new cryptocurrencies are adding in the list of existing cryptocurrencies and there can be anytime when the new cryptocurrency takes the place and position of Tether. The value of any cryptocurrency can be low or high anytime. Every developer team wants to enter in the field of cryptocurrency. They are also trying to improve over the existing cryptocurrencies by integrated the virtual currency with upcoming technologies.
- Limited Coverage: Tethers are accepted at specific stores or platforms. Thus, the payments for all purposes cannot be executed through Tether. The users want to pay their bills through digital wallets which save their time and in return provide them with some cash back or returns through vendors. But the limited approach of Tether has reduced its scope and reach.
- Government restrictions: The governments are very suspicious about the consequences of cryptocurrencies. That’s why they are not putting any efforts into making it a legitimate entity rather putting restrictions on trading and investing in cryptocurrencies. Bitcoin, the most used cryptocurrency has also not got the legitimacy of all the developed economies. Thus, the question of legalizing Tether is still far away from the approach.
Recently, there was news spread in the market that Tether’s auditing process is not reliable. Also, sometimes the auditing is not performed regularly. Thus, the users are wary about the transparency of the currency. Even the rumors have been circulated that Tether is just executing a fractionally reserved platform. It has created suspicion among investors. There is a high risk of loss in the value of physical currencies such as Dollars, Euros, and Pounds etc. In fact, the major threat is that if the market economy gets spooked and there are no backings or reserved remained in the economy.
Also, if one cryptocurrency goes down, others also start falling. This is the downside of cryptocurrency which stops investors to trade in cryptocurrency. And, Tether is the cryptocurrency which backs the dollars for 1:1 ratio. This fact makes the investors interested in Tether. But if suddenly everyone starts exchanging dollars for Tethers, then 1:1 ratio can go up which can increase Tether’s value.
There is no way through which quantification of risk can be done. Thus, investors are less likely to go with it. The only fact which makes Tether preferable is its integration with blockchain technology and Omni Layer protocol. Also, the same value for exchanging dollar is the ultimate trait that Tether possesses. It also makes Tether different from Tether cryptocurrencies. The above risks are not just with Tether but with all cryptocurrencies present in the market. In the nutshell, it can be said that investors need not worry about these risks and threats as without risks, no returns can be obtained.
What Happens if Tether Gets Lost?
We get the high returns by investing in the cryptocurrency but as we know no return comes without taking the risk. Thus, there is always a risk arises whenever we talk about in investing the cryptocurrency as when we buy USDT or mine USDT, there is a risk of losing few in between. Even, when we think of buying it or storing it in the wallet the cyber-attacks such as scamming, phishing or hacking can become the major threats in the digitalized world. Sometimes it also happens that the manual errors might cost a hefty amount in a way the sender might fill in the wrong receiver’s address.
Tether is a virtual currency i.e. doesn’t exist in physical terms. Then what defines ‘losing Tether’? A Tether cannot be lost instead it is the private keys which individuals lose and in fact, sometimes the wallets get hacked.
If the individual has lost his USDT because of any theft or forgery or through the manual error, then there is no way out because now there is no way possible to get the whole transaction reversed and to recover the amount back. In this case, the individual loses his ownership over the USDT. This seems to be a big drawback of investing in Tether but Tether is not the only cryptocurrency which possesses this risk. There are other cryptocurrencies like Litecoin, dash, Monero etc. which can also be lost during buying or mining.
It is the users’ duty rather the responsibility to keep his private key in a secure fashion because the designers have already integrated Tether with the Blockchain Technology and Omni layer protocol which are the best applications to provide the integrity and transparency to the platform. So, users can do following ways to keep his currency-
The user should keep the small amounts in the wallet i.e. the amount which is to be transacted that particular day.
The private key should not be disclosed to anyone. It should be kept in a secretive manner.
Thus, the users should pay proper attention to their accounts and wallets and regularly check them if they are not caught by any hacker. In fact, one proper passbook can be maintained in order to keep a separate record with the user himself. All these measures actually help in preventing the user’s wallet from any kind of fraudulent activities.
Cryptocurrency has started taking the economy in altogether a different world. With the growing technological advancements and communication methods, the digitalization is on its heights. Even the currency has been touched by the world full of virtual objects and items. But to ensure the ethics, integrity, and transparency, it is very necessary to regulate the cryptocurrency. Without which not only the country but the world might suffer.
Many countries are on the way to legalize cryptocurrency. Only after making it a legitimate entity, it can be easily handled. Governments and Financial institutions are drawing new laws to regulate the virtual currency.
When Bitcoins came into existence, US Federal Bureau of Investigation in 2009 created an impression in people’s mind that cryptocurrency can be a new way to fund terrorist activities. Because of this reason, other than Bitcoins, all cryptocurrencies are in the zone of suspicion. Although governments are trying to implement rules and guidelines yet have not been successful due to its complex nature.
There are some attributes and factors which need to be taken care of while creating the regulations for Tether. Most of the countries only see the merits of cryptocurrencies but don’t pay heed to the problems it can create.
Here are some of the reasons which make it necessary for the governments to take proper action in regard to cryptocurrency-
- Technological advancements - With the rapid growth in technology, the possibility of malicious attacks and third-party interferences is increasing. Therefore, regulating the cryptocurrency is a must to protect the investors and user’s funds safe.
- Criminal Activities are not funded - With the virtual currency, it has become possible for the users to easily send or receive the money. Thus, criminals or terrorists have got an easy way out to fund their activities in different countries.
- To check the Inflation - Cryptocurrencies are designed in a way that their supply is limited. Thus, increasing in their amounts and values can be any time possible. Thus, it becomes the government’s duty to save people from these kinds of problems so that their hard-earned gets safe and secure.
Is Tether Legal?
As the matter of currency is a very sensitive issue. No one easily trusts the organizations and institutions until they comply with banking laws and regulations. Thus, it becomes necessary to conform to the rules of big organizations which satisfy the customer’s expectations and make them faith in the application. Tether has collaborated with many big organizations which fulfill the user’s demands and aspirations. Tether has been specifically made its alliance with U.S. firms and institutions i.e. it has associated itself with the U.S. Treasury Department’s Enforcement Network. Outside the U.S., Tether has been affiliated with Hong Kong based financial institution named as Renrenbee Limited.
The anti-money laundering laws and counter-terrorist financing operation rules are also applicable for Tether such that no one ever gets the chance to raise the question out of its transparency and integrity. Some of the banks based in Taiwan such as Hwatai Bank and Cathay Bank acknowledges its technology framework model. Poloniex and Bitfinex, the two currency exchange platforms which facilitate the procurement of Tether cryptocurrency are likely to get the legitimacy from U.S. regulating institutions. Many other industries like Liqui, Cryptopia, Ambisafe, and Epay have supported Tether which shows that it is a reliable and trust-worthy platform to invest in. Thus, Tether has become a trusted and legitimate cryptocurrency and its usage have been increasing day-by-day. The confidence among investors for Tether is growing and its future really seems bright. Once it gets full legitimacy, then it might become the most used cryptocurrency in the market.
Tether and Taxes
When it comes to cryptocurrency people generally think of the transaction fee and the taxes as it is a virtual currency. When people start using cryptocurrency their main concern is that they will have to pay tax. In fact, the cryptocurrencies are likely to become the tax havens sooner or later. This is the perception of investors and economists.
Tether transaction execution process and operations are absolutely anonymous. Thus, many users have the misconception that by using the cryptocurrency they can enter into the world where there is no provision of paying taxes and they can easily evade it. But the real scenario seems quite different than the imagined one. Lately, the cryptocurrencies have come under the purview of ‘US Commodities Futures Trading Commission’ as commodities. This is the major event occurred in terms of providing legitimacy to the cryptocurrency.
There are possibilities when the funds can be stolen or the wallets can get hacked. Then the user will go to whom for any help. The authorities will only consider the user’s problems when they perform the operations in a legal manner and follow the rules and regulations.
The user’s earnings are taxable and 15% rate is charged according to the user’s income. The capital gains rate becomes applicable based on the fact that the user falls into which income tax bracket. The cryptocurrencies are not taxed when the conversion takes place between two cryptocurrencies. But the tax is charged when there is exchange for fiat currency. In the year 2017, cryptocurrencies did not come under the ambit of taxation. But in 2018, the situations have been changed and cryptocurrencies are taxable.
The alternative for the users to always remain on the safer side is that the users must pay their taxes as they are accountable to the platform. There can be situations arise when the users have to pay the hefty amount in the punishment of evading the taxes. After all, this is done to make the platform secure and transparent. Taxes are not only to earn the profits but to keep the track record of transactions and the funds supplied in the process.
Does Tether Have a Consumer Protection?
Tether has always been questioned regarding its consumer protection attribute. When any transaction is executed in Tether but the user wrongly sends the funds to the incorrect address, then the funds can’t be recovered back. The loss seems to be permanent in nature. Even if the users have an issue with the network in between the transaction, they cannot go anywhere to complain about the same. The major question which arises in front of us is does Tether provide a consumer protection?
All the cryptocurrencies are not directly responsible for the customer protection. Whenever cryptocurrency is introduced in the market, the team developers give the absolute ownership to cryptocurrency which makes user responsible for protecting their network and transactions from any malicious attacks or third-party interferences. Also, the transactions are executed after achieving consensus.
But in some terms, Tether does say about the customer protection like Tether is in compliance with KYC guidelines and also the tokens can be redeemed. The Tether Limited takes the full charge of any mishappening occurred and they have been serving their customers in every way possible. The regular audit by legitimate financial institutions is also one way of giving full security to consumer’s transactions and funds. The Tether team takes care of the regular updating of the algorithms, protocols, and technology used in the network. The recent developments have clearly proven this fact.
The cryptocurrency is not regulated by ay governments or institutions which makes investors wary about their funds. No laws and regulations to regulate the cryptocurrency have been formulated by any country. Thus, until the absolute code is been drawn and get the legitimacy by any trusted organization, the users must take care of their funds on their own.
Hence, before selecting any wallet, the users must look for different factors like how it executes the transactions, does it care about the safety of the funds etc. Only then their funds will be secured.
Illegal Activities with Tether
Today in the world of digitalization, cryptocurrency has become the widely used term and concept. Its advantages also attract the investors. But with the cryptocurrency introduction, the cyber-attacks have also acquired their way. Moreover, the technology used in the cryptocurrency platforms feature anonymity which then gives further heat to criminal’s intentions and activities.
There are many reasons which make Tether vulnerable to cyber-attacks:-
- Another loss with Tether is that when the transactions are hacked, the money cannot be recovered back. Therefore, many Ponzi schemes can easily make use of this attribute of Tether.
- There is no direct communication between the users and team developers. Thus, if an attack occurs on user’s wallet, they are not sure of whom to complain about this.
As we know Tether was hacked once but the team developers after that cyber-attack ensured that security protocols and algorithms need to be changed at first. And, the hard-fork changes were applied to the existing security providing software applications. The integration of Tether with the Omni Layer protocol was a major event in this scenario and considered to be the greatest achievement of the team.
The moves were taken by the team clearly states that they are concerned about the users and not allowing the users to use Tether.to wallets, until the changes were implemented was really appreciable. Moreover, the improvements are continuously going on. Thus, there is nothing to worry much. The cryptocurrency world is sooner likely to get the legitimacy which will further enforce the security and reliability of the network. Also, the compliance with the KYC guidelines assures the investors of the integrity and transparency of the platform.
Is Tether Secure?
Most of the Tethers are secure and reliable as they are stable. The Freewallet team who has designed the Tether has taken care about its integrity. In fact, Tether is absolutely free from any kind of malicious attacks and third-party interferences. The following attributes prove the security of the Tether platform-
- Blockchain Technology: The Tether.to wallet has been encrypted using the Omni Layer protocol. Moreover, the blockchain technology which enables the smart contract features also supplements its safety and security. The main reason why users trust Tether is its association with the blockchain technology.
- Proof-of-Funds: The proof-of-funds algorithm has augmented the transparency of the platform. It also provides the whole picture of the transactions performed and the updated value of the Tethers according to the market economy. The whole record of the transaction is accessible through Tether.to wallet.
- Financial Audits: The association of Tether with the financial institutions has enabled the investors to get the complete record of the Tether balance sheet. The regular audits done by the legally financial organizations reduces the chances of any loses and frauds.
- Stable Framework: The infrastructure has been created in a way that the asset pegged cryptocurrency is nearly stable while other cryptocurrencies fluctuate with the rise and low in demand and supply of market prices. This is the biggest advantage of using Tether as it is less risky and gives us high returns at the same time.
Is Tether Anonymous?
Tether is absolutely anonymous i.e. no one can access the user’s personal details and information. It also keeps the user’s transaction history in anonymity. Tether enables the peer-to-peer network which does not let the third-party interference in between the transaction process. Thus, only the sender and receiver get the details of the transaction.
Let us understand through an example. If there is any buyer who wants to purchase any object or item but the sender doesn’t want to associate with him due to his regulations and laws, then he cannot decline the transaction due to the buyer’s personal background. In this way, anonymity is maintained on the platform and no discrimination between the buyers.
Moreover, whatever transaction happens on the network, each node is encrypted and secure. The miners also don’t get to know about the particulars of the transaction. Thus, the hackers cannot go for any cyber-attacks. There is no possibility of tracking down any kind of information.
Has Tether Ever Been Hacked?
The virtual cryptocurrencies are most likely to get attacked by hackers and third-party interferences are the common threat to the digital currency world. There are many ways such as hacking, scamming, and phishing which can be used during cyber-attacks. Moreover, there is also a possibility of losing public or private keys of the wallet. Also, these are not physical currencies and that’s why they cannot be recovered back because they don’t possess value in physical terms.
Yes, Tether has also been hacked. It was only the last year in November when there was a major crash i.e. $30 million in the cryptocurrency value when the wallets were hacked. Now, the citizens were not allowed to trade in Tethers. When Tether came into existence, all seemed good enough but what made investors suspicious about Tether because it didn’t possess any backing.
After the crash, the organization took a serious action and it was banned to use the wallets until it got integrated with the Omni Layer protocol. Also, the company was successful in freezing the tokens which were stolen by the hackers.
There was a report published named as ‘Quantifying the Effect of Tether’ which create a hustle-bustle in the market as it said that Tether was used to increase the demand of Bitcoin in the market when it was facing a downfall. Another report talked about if Tether was acquiring any backing reserves. All this was proved by the team developers but financial audit reports are still to be released.
When Bitfinex, the world’s largest trading platform, closely associated with Tether was also questioned for its reliability and integrity. But all those accusations were not true and all the questions and doubts were cleared by developers.
Every cryptocurrency has the probability to be hacked. Thus, one should not be wary of any cryptocurrency at the initial stage. Moreover, the transactions are performed using the third-party service providers which are a major risk and threat to the user’s money. Thus, the proper cost-benefit analysis and watching the market economy regularly can only be the way out to keep the funds safe. One should always look for specific attributes like security, coverage area, technicalities etc while selecting any platform to put funds in.
How Can I Restore Tether?
All the cryptocurrencies possess the attribute i.e. anonymity. But it can also be a great threat to the investor’s funds. Many times, it has been seen that people are facing problems and losing their funds. There are many possible ways through which users wallets can be hacked or stolen. If the user has lost his wallet because of the hackers or himself have sent the money to the wrong address. Then there is no way out to get the money back.
But if he has lost his private key and still his money is safe, then there are many service providers such as Ledger Nano, Coinbase, and Trezor which permits the user to get his private key back. These service providers provide the user with a unique seed code which helps the user in regenerating the key again.
But for the people who don’t acquire the habit of regularly updating their wallets should build one so that they can keep their money safe. Even the users can go for the hardware wallets where they can keep their private and public keys in a safe mode. Here the users are just required to plug the hardware wallet and restore the coins in case they lose.
To always keep the money safe, users can go for web-based wallets which require some personal information to restore the wallet back. These wallets function like the personal emails which can only be accessed by the specified user.
Hence, the security of the money is in user’s hands. Also, the service providers should create the codes to restore the lost money and try to keep the check on illicit activities of the criminals. But at the same time, users should keep their wallets and private keys in lock and key.
Why Do People Trust Tether?
Tether is a platform which facilitates the integration of asset and fixed currencies. Today, we are already surrounded by the number of cryptocurrencies in the market which makes it difficult for us to choose the best one among many. This problem has been solved to some extent by Tether implementation as it acquires many features which make it advantageous and preferable over other cryptocurrencies. Some of the major reason that makes Tether a genuine currency in the market is listed as follows:-
- Excellent Technology: The most important attribute of Tether is its technology which is being integrated with Omni Layer protocol. The Omni Layer protocol is a fully decentralized and an open-source system which also enables the multi-party encryption to the wallet.
- Simple Interface: Tether’s interface is not at all complex which makes it compatible even for the novice users. In fact, the individuals who possess zero knowledge of coding and programs can easily access it without any third-party’s support.
- Transparency: Tether also possesses the accountability and transparency characteristics which make it preferably better than other fiat-pegged cryptocurrencies. All the protocols and algorithms used in Tether programming support the privacy and security of the user’s personal information.
- Market Compatibility: Tether cryptocurrency is free from all kinds of market economy crisis and risks i.e. debt trap, liquidity crunches, inflation etc. It executes the transactions in one-to-one ratio i.e. one US dollar is equivalent to one USDT Tether. In fact, this platform reduces the volatility of currency exchange as the money gets exchanged in stable currencies such as USD, Euros etc.
- Variability: The wallets, exchanges or merchants have no proper definition in terms of integration with Tether. Thus, it is a versatile and universal application which makes it usable and worthy for everyone.
- Security: The blockchain technology has supplemented the Omni Layer protocol features. It gives the complete control of currency in the hands of the user. The smart contract application is also integrated with Tether which provides it a convenient and feasible environment.
All these features have made Tether platform automated and regulated. The standardized procedures and regulations are the auxiliary traits of Tether framework. In addition to this, technology has augmented the existing elements of Tether and has been successful in making Tether a distinctive cryptocurrency rostrum.
History of Tether
It has been a known fact in the industry that Bitfinex and tether are associated with each other. In fact, some people go to extent claiming that Bitfinex has invested in the tether. It was founded in November 2015. There is not much information related to the history of tether available over the internet. There is still ambiguity over the inception of this technology and who created it. However, the tether coins are being issued and managed by Tether limited which is regulated by the laws of the British Virgin Islands. Headquarters of the company is located in Hong Kong.
It is being speculated the CEO of Bitfinex “Jan Ludovicus van der Velde” has been involved in the price manipulation of bitcoin, as well as Tether.
Who Created Tether?
The asset pegged cryptocurrency i.e. Tether was created in the year 2014 and firstly it was termed as ‘Real Coin’. To increase its fame and name it was renamed as ‘Tether’ which is the widely used and common name for Tether today. Although the firm’s webpage claims that Tether was first created in the Hong Kong city yet there are no proofs of creation or any meticulous details given by the developers. Thus, it becomes a mystery that where Tether was incorporated first.
But one thing is 100% sure about Tether that it is associated and integrated with the world’s largest currency exchange platform i.e. Bitfinex. Even one spokesperson in his speech had also mentioned that both the companies are created by single person i.e. ‘Jan Ludovicus van der Velde’. J.L. van der Velde is called to be a Dutchman by birth and recently known to be based in Hong Kong city.
In his interview, he mentioned that he had always been interested in financial aspects based on technicalities as he belonged to the field of Information Technology. He is associated with many firms and organizations such as TUXIA Alumni Group and Hylab Technology Ltd.
And, before creating Bitfinex and Tether, he used to trade in other cryptocurrencies. In fact, the creation of Bitfinex in 2013 i.e. before the emerging trends of Bitcoin (in 2017) truly explains his interest in the cryptocurrency. Thus, along with the creation of Bitfinex, he wanted to develop a currency which provides the real value i.e. Tether, a 1:1 asset pegged cryptocurrency.
The usage of Blockchain Technology and Omni Layer Protocol in Tether shows his potential to integrate the cryptocurrency with trending technology. One of his teammates Guy Klages have said about him, that he possessed an analytic mind and always been enthusiastic about learning the new concepts and world-changing phenomenon. Thus, the interest and capability of Mr. J.L. van der Velde have led us to meet the new cryptocurrency which has revolutionized the market economy. As Tether provides the real currency exchange i.e. one USD$ in exchange for one USDT.
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