With the increasing popularity of blockchain technology, there are not a lot of digital coins, but what is tether coin? Is it another cryptocurrency? What does it do? Can you get any profit from it? Will tether crash bitcoin?
If you don’t know much about what is tether coin, then here is a much closer look at this coin and everything about it.
What is Tether?
Tether is a Stable coin, which means the value of a coin is fixed compared to the value of other cryptocurrencies that changes depending on the market.
Stable coins like Tether is often tied to a fiat currency. Tether is tied to the US dollar, which means 1USD is equal to 1 Tether token (USDT).
What Does Tether Do?
As a stable coin, the main purpose of Tether is to serve as a backing token for the fiat currency it is tied with, which is the USD.
Also, Tether serves as a bridge between fiat currency and cryptocurrency. It can be used as a digital coin or in electronic form as well. Most exchanges don’t allow buying of cryptocurrencies directly using fiat currencies, and this is where Tether comes in.
Tether, with its stable price value, also makes it a great start for those who want to enter into the cryptocurrency world but is still learning and trying to avoid huge risks in the market.
Advantages of Tether
Tether has gained popularity in the cryptocurrency world these days, and there are countless reasons why a lot of people are drawn to it.
- Transparency
One of the greatest benefits of Tether is the transparency it offers, bringing the much-needed clarity in the cryptocurrency ecosystem. The value of Tether is determined, and it’s not going to change, which helps ease the doubts of investors and buyers about whether their investments will be lost when the market changes.
- Reliable and Secure
Since Tether is working under the blockchain technology, which is one of the most secure and safe systems, purchasing and selling Tether coins will also be as secure as one can get.
- Fiat Currency
Unlike digital currencies you can use to buy and sell online, Tether is a fiat currency, which means, it can also be used in electronic form.
- Almost No Violent Market Situation
The tether coin value is $1, and that is not going to change. No matter what happens in the market, the value wouldn’t drop or rise dramatically. Although it wouldn’t be the best choice if you want quick money, one of its advantages is for you not having to wonder about violent market situations constantly.
And with that, if you ask “can tether be mined,” the answer would be no. It’s against the nature and the very purpose of a stable coin.
