Cryptocurrency Tether (USDT) Review and Explanation

Cryptocurrency Tether (USDT) Review and Explanation


Today we will not talk about the next ordinary cryptocurrency, it’s gonna be a special one. Tether is a cryptographic version of the US dollar or stablecoin.

Unlike most coins, the value of USDT does not depend on how often the coin is bought and sold. Tether also is not influenced by the general market decline. While all cryptocurrencies experience daily fluctuations, the USDT coin stays stable.

The rights to the cryptocurrency belong to the Tether Limited organization, which is the creator. By the time Tether was created, the company had already emerged its unsuccessful project, Realcoin cryptocurrency. Tether coin appeared on the trading platforms in February 2015. 

Tether uses the same blockchain as Bitcoin (and the same encryption algorithm SHA-256). The distinction in blockchains is a special part of the Tether protocol that is called Omni Layer. This structure makes USDT cryptocurrency open-sourced.

How exactly Tether blockchain works and what is Tether crypto coin? Let’s discover it with Changelly!

Tether (USDT) Value

Tether coin is always worth $1, and it is pegged to the US dollar. Comparing with the Bitcoin rate, the USDT price always fluctuates. There have been deviations in the history of USDT cryptocurrency, but they were no more than 8 cents. 

tether cryptocurrency chart

The main aim of Tether is liquidity and hedging provision as opposed to market volatility. USDT is pegged to fiat currency, so its value is protected. That’s why stablecoin is not as risky as ordinary cryptocurrencies. 

Even though the Tether price is always $1, the coin had a historical maximum and minimum. USDT token is trading on a wide range of crypto exchanges, where the price of one coin depends on market supply and demand. We are happy to offer you our service in case you want to buy or exchange USDT. Check out our cross rates and find the price that suits you the best.

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Now Tether is in the 3rd place among cryptocurrencies rate by market capitalization. The market cap of the cryptocurrency is $25,383,264,185. The price of one token is obviously $1 and 0.00003070 BTC.

  • The all-time high price was tested on May 27, 2017, 一 $1.21. 
  • The all-time low price was on March 13, 2020, 一 $0.8995.

How Tether Blockchain Works?

The Tether network is built within three layers. The first layer is the Bitcoin blockchain and the Tether transaction system, the Omni protocol. At the second level, the Omni protocol itself is located. This technology allows you to create and destroy a cryptocurrency, track and report the circulation, transact and store USDT and fiat in a peer-to-peer, anonymous, crypto secure environment. 

The third level is occupied directly by Tether Limited. The company is responsible for accepting fiat currencies from users and issuing cryptocurrencies instead and maintaining reserves. Moreover, Tether Limited makes decisions and integrates cryptocurrency on various exchanges, wallets, other projects, etc.

Tether Limited

The network uses Proof-of-Reserves protocol. It means that all the USDT cryptocurrency, which is in circulation, secured by fiat currency. If the entire amount of fiat currency converges with the amount of cryptocurrency, the Proof of Reserves has been observed. USDT mining is not provided. It is released only by the crypto platform itself, and only in exchange for fiat money.

Let’s sum up some technical points about Tether (USDT) cryptocurrency: 

  • The first part of the USDT cryptocurrency has been released on March 12, 2017. 
  • Tether blockchain uses the SHA-256 encryption algorithm. 
  • Omni transactions are recorded sharing the same Bitcoin transaction hash. 

To explore more technical information, please, check out Tether White paper.

USDC, GUSD, PAX, TUSD, DAI Stablecoins Compared

Let’s compare some popular stablecoins. By the way, we’ve already explained all the differences considering stablecoins.

Coin Curr. Market cap   Created by  
USD Coin (USDC) $5,732,262,932   Coinbase & Circle, San Francisco  
Gemini Dollar (GUSD) $16,155,931   Gemini Trust Company LLC, New York  
Paxos Standard Token (PAX) $245,184,663   Paxos, New York  
TrueUSD (TUSD) $398,473,932   TrueCoin LLC, San Francisco  
Maker’s Dai (DAI) $1,620,265,762   Maker Ecosystem Growth Holdings, Inc., Cayman Islands  
Tether (USDT) $25,383,264,185   Tether Limited, Hong Kong  

Tether (USDT) Wallets

For storage of USDT, you can use quite a wide range of wallets: hot and cold. Because of compatibility with Ethereum, Litecoin, and Trezor, the range of wallets increases. Let’s dig into the variety!

  • MyEtherWallet. This is a web browser wallet that can even be a Chrome extension. 
  • Omni Wallet. This is an original Tether wallet that takes control over users’ private keys. This possibility makes the wallet extremely safe. 
  • Tether Wallet. This is an official Tether wallet but it has some issues. The wallets were hacked in 2017, intruders have stolen 31 million USDT. Not the best wallet to keep your savings.
  • Coinomi. This mobile wallet enables you to keep money on your Android or iOS. It is user-friendly and safe for your assets.
  • Exodus Wallet. This is a desktop wallet that allows keeping the best-known cryptocurrencies: Bitcoin, Ethereum, Dash, Litecoin, and of course Tether. 
  • Ledger Nano S. If you require more privacy and safety, use the Ledger cold wallet. It costs some money but definitely worth it. 

Where to trade Tether (USDT)?

It’s easy to exchange USDT coin due to a significant number of platforms accepting this cryptocurrency. 

Exchange BTC BCH ETH LTC XRP EOS USD IOTA
Poloniex      
KuCoin      
Bittrex    
Bitfinex          
Binance        
Kraken              
OKEx      

By the way, you can trade Tether cryptocurrency on Changelly PRO trading platform. We offer you a smooth experience with low commissions and fast transactions.

Tether Summary

Tether is definitely the best-known and the most popular stablecoin. USDT coin is provided with stability, transparency and minimal transaction fee. Moreover, about 80% of all Bitcoin assets are being traded in Tether cryptocurrency. 

Tether cryptocurrency has a controversial reputation in the blockchain world. USDT token is centralized, requires permission to use and depends on the trust of users in some organization, which is contrary to the principles on which Bitcoin is based. 

Perhaps the campaign against Tether will bring some benefit. Criticism can push the system to raise professional standards and get rid it of its weak points.

Disclaimer: This article about Tether (USDT) should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

AO/X Staff
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