Tether cryptocurrency was launched in 2015 by Tether Limited. Tether is a cryptographic token built on the Bitcoin and Ethereum blockchains, the value of which is pegged to USD through a centralized dollar reserve. The great popularity of the system is due to the stability of the currency and the ease of conducting monetary transactions. The cryptocurrency was developed using the Bitcoin system code based on the protocol «Omni Layer». The cryptocurrency is linked to the Bitfinex exchange. In most cases, Tether uses USDT, which is pegged to the dollar. USDT with capacity to be a very good alternative to Fiat money, that is alternatives with extremely low fees. USDT tokens are backed by 74% US dollars according to the company. The market capitalization of Tether for 2020 was over $9 billion. In addition, Tether is reaching a leading position in the daily trading volume in the cryptocurrency market. It is a powerful platform for working with any currency, as well as various services. Tether is traded on almost all major and minor exchanges: Binance, Bitstamp, EXMO, WEX and others, as well as trade CFDs.
How Tether System Works
According to their site, Tether is built on the Bitcoin ecosystem. This means that Tether is based on one of the most secure blockchain technologies – open source. In fact, it is a cryptocurrency asset, and today it is issued on the Bitcoin blockchain via the Omni Layer protocol. Thanks to the use of blockchain, these payments have the maximum level of protection. Each unit of Tether is a pegged fiat currency, in which case it is pegged to the US dollar held by Tether Limited at a 1:1 ratio. With a 1:1 ratio, Tether’s stock is unlimited. Thus, this cryptocurrency can be used as a medium of exchange and storage of value. This can be examined in more detail on transparency page Tether.
It is a powerful platform for working with any currency, as well as various services. Tether is a digital coin backed by fiat assets such as USD, EUR and JPY. The token rate is correlated with the base currency one to one. To stick to its creation specifics, one Tether coin has a value of one dollar. The uniqueness of this token is that each block is supported by the US dollar, and the entire reserve is at the disposal of Tether Limited. Tether also boasts that it is anonymous and decentralized. It is an alternative to classic fiat currencies and digital currencies, as it combines the properties of both. Key benefits of Tether:
- There is no commission for transfers between wallets within the system;
- The ability to use digital analogues of real currencies (USD₮, EUR₮);
- The virtual currency is backed by real monetary assets (1 USD₮ = 1 USD);
- This cryptocurrency has a high transaction processing speed;
- Cryptocurrency Tether is backed by real dollars;
- Cryptocurrency Tether has a high level of decentralization;
- The virtual currency is traded on the world’s most famous exchanges.
Main Benefits of Tether CFDs
Now the virtual currency is quite stable, and its capitalization is growing, so investors may be interested in the fact that the existence of the project will be long and successful. Unlike any other cryptocurrency on the market, Tether claims to be 100% backed by USD held in the reserve. Compared to other cryptocurrencies, Tether’s rate is extremely stable. In an attempt to maintain the stability of the exchange rate and reduce volatility, the developers are trying to tie the cost of issued tokens not only to fiat money, but also to commodity markets. The minimal level of market activity makes this digital currency easily predictable. Today, the currency is gaining popularity, and the company itself is strengthening its position. Stable quotes provide interest, both from private investors and legal entities. You can use the coin and trade Tether with CFDs. To protect yourself from potential price jumps and reversals, it is recommended to set stop-loss and take-profit.
It is advisable to start trading on the hourly chart, in accordance with the trend movement of the market, while it is advisable to use support and resistance lines and various technical indicators that help establish the direction of the trend. You can trade breakout strategies, they are quite effective. For all beginners, it is recommended to start trading cryptocurrency on a demo account, since this asset is quite specific and has many different features.