Why use the stablecoin Tether (USDT)?

It is almost impossible to imagine the cryptocurrency market without Tether USDT. In cryptocurrency trading, USDT has become dominant over the US dollar and other fiat currencies for quite some time.

What is Tether USDT used for?

USDT is a digital version of USDT and has effectively become the base currency of the digital asset market.

• Safe haven asset. During periods of high market volatility, traders and investors take profits in stablecoins until the situation stabilizes.
• Cryptocurrency trading. Traders can conveniently convert their money into USDT and then use USDT to trade any number of crypto assets using the stablecoin as the base currency. Almost all modern crypto exchanges support Tether for deposits and withdrawals, as well as for trading in Crypto/USDT pairs. Many cryptocurrencies do not form trading pairs even on the most representative exchanges. For example, exchanging ARCH to RAD will most likely have to be done in two stages, using USDT as an intermediate link.
• Deposits. Many cryptocurrency exchanges have deposit sections where you can quickly make a deposit for any period with an interest rate higher than in traditional banks.
• Lending. You can borrow or borrow cryptocurrencies at interest through various lending platforms and exchanges. Since USDT is almost non-volatile, lenders do not have to worry too much about possible losses due to a fall in the value of the loaned asset.
• International transfers of own funds. Transfers in stablecoins are possible anywhere in the world without restrictions on the transfer amount. In addition, they are much cheaper than traditional ones. By the way, sending USDT between exchange accounts or between cryptocurrency wallets is most profitable on the Tron network (TRC-20).

In fact, the scope of application of the USDT cryptocurrency is much larger and is actively expanding every year.

What is the difference between USD and USDT?

The key differences between USD and its digital brother are:

• Decentralization. The dollar is controlled by the US government, while USDT is more decentralized. (although its big disadvantage is that it is regulated by a separate commercial campaign).
• Cost difference. Even though USDT is backed by the dollar and its value is pegged to the US currency, its actual value on exchanges may differ by a fraction of a cent.
• Area of use. The dollar is the most popular fiat currency in all countries, so it is currently easier for them to pay for purchases and use in everyday life than USDT.
• Distribution in the field of cryptocurrencies. Tether (USDT) is much more actively used in the cryptocurrency sphere (on various exchanges, cryptocurrency exchangers and other services).
• Commissions upon use. Transactions on the blockchain cost much less than dollar transactions on bank accounts and cards, and they are processed faster. A stablecoin transfer is completed in a few minutes, while an interbank transfer can take several days.

For many years now, users have noted that using stablecoins on the crypto market is more convenient and profitable than fiat dollars. In real life, they are not used so actively, primarily because the governments and banks of many countries are against it.

Is it safe to use Tether USD and what are the risks?

Tether is a leader in its market segment and is one of the five largest cryptocurrencies by market capitalization. Tether has faced litigation regarding its dollar reserves in the past, but the cryptocurrency management company has provided all the necessary evidence about its reserves so that traders and investors can feel confident in holding USDT.

Conclusion on Tether cryptocurrency

Every day you can come across many provocative headlines in the media that Tether is a real scam and it is better to avoid this cryptocurrency, but, as practice shows, this stablecoin still remains the leader among cryptocurrencies pegged to the US dollar and is in great demand among investors and traders.