Tether is the largest stablecoin. How to use it?

Tether is the largest stablecoin. How to use it?

Tether is the most popular and the first stablecoin to be based on the value of the US dollar. In this article, we will consider in detail: what are its advantages and disadvantages, why it should be used as a replacement for the outgoing Perfect Money, what protocols are there and we will analyze several examples of working with it.

What is Tether USDT. Advantages and disadvantages


Tether (USDT) is the fourth largest cryptocurrency in terms of capitalization and the first in terms of trading volume in the world (at the time of this writing), the rate of which is always stable due to the peg to the US dollar.

1 USDT = 1 $.

Advantages:

  • Fiat reserves... Tether claims that platform currencies are 100% backed by reserves. This means that everyone can convert all their USDT to USD and everyone has enough fiat money. True, there is a nuance here: in reality, Tether is secured by 74%, a significant part of which are securities and loans issued to related companies. However, Bitcoin or Ethereum there are no reserves, therefore, in fact, USDT is more reliable than BTC or ETH;
  • Acceptance level... Crypto investors use USDT as a safe haven. With the help of Tether, you can fix a profit from the sale of cryptocurrency or make a quick purchase with a minimum commission;
  • Cheap and fast transactions... The Tether platform is integrated with the OMG Network Plasma (OMG) sidechain of the Ethereum blockchain. OMG's Tether network is available through the Bitfinex exchange, where traders can now react faster to market changes and save on trading fees.
  • Capitalization... At the time of this writing, the Tether cryptocurrency is in fourth place in terms of market capitalization.

Disadvantages:

  • Centralization... Analysis of stablecoin transactions showed that most of the tokens are concentrated on 100 wallets, which creates risks of manipulation of the coin rate. According to experts, this is exactly what the company does, which we will write about below;
  • Opacity... The cryptocurrency website says that 100% of "tokens are backed by reserves." However, after the Commodity Futures Trading Commission sent Tether Limited a subpoena due to doubts about the veracity of this statement, the company said that the collateral is only 74% and part of the collateral is securities and money borrowed. At the same time, the company refuses to check these figures by an independent auditor;
  • Reputation problems... On the network, you can find various information about hiding the real state of reserves, as well as manipulating the Bitcoin exchange rate in conjunction with Binance... Thanks to these manipulations, false trading volumes are created, thanks to which USDT is in first place among all cryptocurrencies in this parameter. Including above Bitcoin.

Why use Tether


The use of Tether is beneficial for both individual traders and exchanges, and against the background of the termination of work Perfect Money with HYIP projects also for the HYIP industry. So far, Tether is one of the best alternatives to the bygone payment system.

As mentioned in the benefits, Tether is a stable token with a fixed rate of 1: 1, i.e. 1 USDT = 1 $. Tether maintains transparent daily reporting, which will allow you to ensure that all USDT turnover is in line with the reserve.

Tether allows traders to use the coin for hodl (holding the cryptocurrency regardless of the market price) without worrying about volatility. In the case of HYIPs, again here is a big plus that you can use. The same dollar, only in cryptocurrency. When the market turns bearish, with this stablecoin you can protect your digital assets from sudden price spikes and hedge against losses.

Tether protocols


First, let's briefly analyze the OMNI open protocol, which is an add-on over the Bitcoin blockchain. The OMNI platform enables the creation of digital assets, smart contracts and decentralized peer-to-peer exchanges.

The use of the Bitcoin network gives the OMNI protocol a number of advantages, including the security and stability of the Bitcoin network. The coins issued on this network allow them to be used in wallets that support Bitcoin. Tether is one of them.

Probably the biggest disappointment for Tether OMNI will be the high fees associated with Bitcoin. On average, transaction time takes about 10 minutes.

Next, we will analyze the Ethereum-based protocol, which has an ERC-20 prefix. This protocol allows Tether to be used in smart contracts and decentralized applications based on Ethereum.

The main advantage of ERC-20 is better transaction time, which averages 15 seconds, instead of 10 minutes on the Bitcoin network. It is worth noting that the Ethereum network has even lower fees.

There is also Tether BEP-2 (Binance blockchain) and Tether BEP-20 (BSC - Binance smart chain) based on the smart network. Binance, transfer fees are minimal. Please note that BEP-20 and ERC-20 have the same address format. This protocol is not intended to compete with Ethereum or replace ETH. BSC is simply an ETH-compliant chain that is designed to provide users with additional features such as fast block times (transaction speed), low fees, etc.

Now they are gradually connecting this Tether protocol to HYIPs, so we do not exclude that it will be popularized.

Finally, let's move on to the TRC-20 protocol, which is based on TRON. Tether, used on the basis of TRON, has the highest transaction speed of all protocols, which is a huge advantage. We recommend using Tether TRC-20 in most cases.

Initially, stablecoins launched on the basis of TRC-20 were used to sell tokens similar and compatible with the Ethereum ERC-20 standard. The addition of a coin on the Tron blockchain was conceived for the development of the TRON decentralized application (dApps) ecosystem.

Cryptocurrencies issued in various networks are absolutely equivalent. Only the protocols of its release differ, the time it takes for one transaction and the commissions that are taken within a particular network. We recommend using the TRC-20 network.

Please note that when translating, it is very important that the networks match (OMNI, ERC-20, TRC-20). Otherwise, you will lose your money.

Tether instructions


First of all, it's worth noting that there are several ways to buy Tether:

  • Exchangers... Probably, the easiest way is to mark the exchangers, because you just need to choose the direction of exchange, fill out the form and complete the operation. Recall that it is best to use the monitoring exchangers the Bestchange.r and choose the exchanger that suits you. Please note that the minimum exchange amount may not always match yours;
  • Exchange... This is not to say that it is difficult to buy Tether on exchanges. Most likely, one or most of the USDT protocols will be present on the exchange you are using. We recommend using the exchange to buy. Binance.com;
  • Tether official website... There is also an option to use the official website of the company tether.to, but we hasten to say that it is not so easy to do this and it is necessary to go through verification.

We have already written about this, but it is worth mentioning again that when buying USDT, you need to pay attention to the network and address format. In case you, for example, send Tether OMNI to Tether TRC-20, you risk losing your money.

  • Buying USDT through an exchanger
  • How to get Tether TRC-20 in Tronlink extension
  • How to get Tether ERC-20 on Myetherwallet.com

Above, we have discussed the most popular ways where you can store Tether, but there are other options:

Conclusion


At the moment, Tether is one of the most famous cryptocurrencies. Using USDT, traders or investors can store money in assets that are pegged to the dollar, without unnecessary transaction costs when converting to cryptocurrency or vice versa.

Now we can safely say that this is a good alternative in HYIPs due to the possible departure from the payment system industry. Perfect Money.

Tether can be used both for cryptocurrency trading and for working with HYIPs. Gradually, this cryptocurrency is being introduced into projects and we hope that many admins will connect it.

It will be most profitable to use Tether TRC-20 in the form of relatively small fees and transaction speed relative to other protocols.

We believe that now is the time for everyone to start using cryptocurrency and understand all the intricacies. Perhaps in the future there will be other payment systems to replace Perfect Money. For example, NixMoney, which was previously used, or still PM will change its conditions for working with HYIPs, tk. will see a large outflow of funds. There is also an option that admins will find ways to bypass commissions, since in Antares trade accepts payments through a third-party merchant.

In this article, we have analyzed: the Tether cryptocurrency, its advantages and disadvantages, why it is worth starting to use it, sorted out on which protocols the Tether cryptocurrency works, and also gave small examples of working with the coin.

Write in the comments what wallets do you use and consider convenient for PCs or mobile devices, there may have been any problems with certain wallets. Who will have difficulties in buying or selling, questions about creating wallets, you can write to the contacts that are provided below. We will definitely help and advise you!

We hope this article was helpful to you. All successful and profitable investments!

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Комментарии (23)

  1. 19 September 2021 02: 27
    Thank you for the article.
  2. 15 July 2021 11: 52
    With the pace that the USDC has started to rise, it looks like it will soon overtake the tezer by cap. More and more people with big bucks are buying crypto through coinbase, because there it all happens legally and legally, which gives confidence to investors in the USA and Europe
  3. 27 June 2021 13: 07
    I use a trust jack wallet. My identified flaws in it. You need to constantly separately update the currency for which I am waiting for the receipt of funds, you have to do this when you enter the wallet. Second, I can't make an exchange inside the wallet. Maybe I'm doing something wrong in the future I'll figure it out. Thanks for the article, I read everything carefully.
  4. 10 June 2021 01: 47
    It's good that you regularly remind about the articles, it is useful to update the information for yourself
  5. 9 June 2021 23: 10
    Thanks for the article, we will master stablecoins once the PM goes to rest.
    1. 12 June 2021 13: 02
      Yes, willingly, not willingly, but you have to study cryptocurrency
      1. 12 June 2021 22: 00
        In principle, there is not something that would be difficult to understand, but you need to understand the difference between the networks, because the commission depends on this, and besides, you need to be careful when replenishing / withdrawing, but still, probably this is not the worst thing that could happen, however less not very good news.
  6. 9 June 2021 20: 24
    thanks, I will study
  7. 9 June 2021 13: 07
    Add more info about USDT BEP20 (BSC) и BUSD

    This is from binance, there are also small commissions, 0.8 $ и 1$, they are already connected in stockman
    1. 9 June 2021 17: 01
      Lorik351, added to the protocols for BEP-2 and BEP-20. I think there will be a separate article about BUSD
  8. 8 June 2021 17: 16
    Thank you; Binance is very good
  9. 5 June 2021 14: 58
    Thank you for the article!
  10. 5 June 2021 12: 56
    Thank you for the article
  11. 5 June 2021 11: 25
    Previously, I used mainly blockchain and electrum for storage, since the main coins were cue ball, ether, lights.

    Now I use it less actively, since the market has been bullish for half a year, of course, there is no way without corrections, all alts shoot normally, so I use the exchange binance, I already use YUSDT more often for deposits in projects and, accordingly, trade
  12. 5 June 2021 01: 26
    I have already transferred half of the funds to the tezer, while I use binance, everything is convenient
    1. 8 June 2021 08: 21
      Similarly, starting with a bullish trend, almost everything was transferred from perfect to binance, and partly there is on the trastvallet. In fact, those who have not switched yet are no more difficult than working with a perfect, but more opportunities open up, in terms of what you can trade a little bit
      1. 11 June 2021 23: 48
        I agree, it is convenient to change crypt for crypt, quickly adapt to projects, but from the obvious disadvantages, this is not for small amounts
      2. 12 June 2021 22: 03
        This is true, if you wish, you can also throw in part of the funds for staking, and among the most significant disadvantages of the crypt, you can single out the commission for transfers, otherwise there is nothing terrible)
  13. 4 June 2021 18: 52
    Thank you for the article. Yes, you need to accept these changes and continue to invest, I personally installed and studied Tronlink a week ago.
    1. 12 June 2021 22: 04
      I completely agree, you need to adapt if you want to make money)
  14. 4 June 2021 18: 49
    Thank you for the article
  15. 4 June 2021 18: 26
    A must need article right now with all the situation in hyip industry related with PerfectMoney.
    1. 4 June 2021 18: 42
      rave2k20, we'll definitely do!