Tether (USDT) is a cryptocurrency meant to “tether” the value of the U.S. dollar, converting cash into digital money. It uses blockchain technology just like other cryptos, though this is “100% backed by USD” and an actual asset in Tether’s reserve. Making way to be called a stablecoin, USDT is the most popular one and sits on the top three ranks as the highest crypto by market cap. It attracts more people to trade it on popular exchanges for it provides stability to an extremely volatile market, helping major crypto exchanges without using an actual dollar to have an easy, secured and straight transaction. Many consider Tether for its high transparency and minimal price swing compared to other cryptos in the market. USDT has become useful and offers a convenient way to trade cryptocurrencies. Other Tether cryptocurrencies are EURt (Tether Euro), CNHt (Tether Chinese Yuan), and XAUt (Tether Gold).

Tether Breakdown

Tether was first created on a Bitcoin transport protocol called Omni Layer, a platform that enables you to create and trade custom currencies and digital assets - a software layer built on the most secured and well-established Bitcoin blockchain which alone supports Tether for about three years. Later on, Tether was launched on the Ethereum blockchain using the ERC-20 protocol standard for creating tokens. This was an effort to speed up the adoption of tether. The project was successful and now has the largest amount of USDTs held on a blockchain. Since Tether is a stablecoin that is bound to the value of USD, you won’t be able to mine it. You can earn Tether through a rewards system issued by online sites. Tether is presently available on Ethereum, EOS, Tron, Algorand, Liquid and the latest addition on the Bitcoin Cash Network. Users can have a faster transaction, low fees and minimized counterparty risk when trading fiat to a digital asset. Tether’s goal is to contribute significantly to a more connected digital ecosystem as it is driven to empower and support growing innovations in the blockchain community. USDT Price Prediction

Tether History

Tether was established in 2014 under its old name Realcoin. Brock Pierce, Craig Sellars and Reeve Collings developed tether Ltd. It was initially created on the Mastercoin layer of the Bitcoin protocol, with a concept of revolutionizing digital transactions to have a faster and reliable exchange by using fiat funds. Mastercoin, now known as Omni, is a transport protocol on bitcoin technology that allows rapid development. Trading of Tether first began in 2015 on Bitfinix and became the leading exchange for trading Tether. Tether’s team was aware of the possible congestion because of a serious bull run on Bitcoin that happened in 2017 and made them open a project to support EOS, Tron and the Lightning network. This provides the blockchain community with more options to access a stable transaction. From there on, a few cross-chain projects were further added that quickly made its growth win out over other stablecoins.

Tether Price Factors

Significant market events can affect the USDT rate, though it can trade at a stable one-to-one rate with the US Dollar. The big question is if the USDT price can still go up, a possibility if the crypto market will enter another winter period. When people seek a safe haven and prefer Tether. Still, the company may release new coins instead to put up with the growing demand.

Availability

Tether has approximately 58 billion worth of coins in circulation. The coin supply can change considerably depending on the need and demand. This capability allows the USDT rate to be stable under any situation. So if there is more USDT in circulation than the dollar in its account, there might be a need to burn some tokens. In this way, it can prevent inflation manually so Tether can never be decentralized.

Acceptance

Since Tether allows transactions to be seamless and fast, many individuals and firms choose this over other stablecoins. The lead time to wire money from any bank is around three business days, while you can Tether with no delay. The rising interest and adoption from Fortune 500 companies and the financial sector are also driving Tether’s price.

Government regulations

Tether grew in popularity in Asia as Chinese crypto users can’t legally buy Bitcoin, so they need to do a lot of discreet moves just to get by. USDT being their priority in getting Bitcoin can slightly move Tether’s price. Buying Bitcoin in USDT is the straightforward way which leads to increased demand. In addition, Tether’s settlement with NYAG includes a two-year agreement to increase transparency; this means USDT will be safer and gain more trust from the public.

Global Financial Crisis

Cryptocurrency adoption is a perfect opening if a financial crisis arises. Investors are going to protect their assets and turn to a safe haven like Tether. Hence, positively impacting USDT’s price.

News in the media

The coin was criticized in different ways. With that said, this oldest stablecoin remains the most trusted one in the crypto world. Any news around Tether is making it more interesting in the investor’s eyes.

Trading Tether

The first thing to do is to look for a reputable broker that has market access to Tether. Each broker chooses their own list of coins, so it is necessary to check before you sign up as this will be a major tool in your trading. Some brokers offer a more simple interface with USDT charts perfect for beginners. There is also a platform for advanced traders with a more thorough Tether chart and analysis tools. Once you sign up for a broker, you may select on a wallet either hot or cold to store your coins. Hot wallets need to be connected to the internet and securities risk applies. While cold wallets are a safer option since you store your USDT offline. Though Tether is less volatile than other cryptocurrencies, the risk is still present. Keeping track of how the crypto market moves by daily monitoring Tether’s chart, particularly USDT’s rate, can give you a better view of your trading plan and what is the right strategy to use. The Crypto market develops more often, thus your trading system should be modified accordingly.