What Is Tether (USDT)? — Kolin Lukas

Kolin Lukas

Tether (USDT) is one of the most popular stablecoins out there. It was designed to hold a one-to-one value with the US dollar. The coin exists on many different blockchains and has experienced rising trading volumes and improved liquidity over the past few years.

Like other stablecoins, USDT is useful for trading cryptocurrencies as it allows traders to avoid market volatility that is common to BTC and other crypto assets. Using stablecoins also removes the extra costs and delays of converting between crypto and fiat currencies.

Introduction

Tether is a key part of the cryptocurrency ecosystem. As of December 2020, Tether is ranked as the world’s fourth-largest cryptocurrency with a market cap of almost $20 billion, trailing only behind Bitcoin, Ethereum, and XRP. In addition, it often ranks as the coin with the highest daily trading volume, even surpassing Bitcoin.

But what is Tether, and how can it be useful to you?

What is Tether (USDT)?

Tether (USDT) is the world’s first stablecoin (a cryptocurrency that mimics the value of a fiat currency). It was originally released in 2014 under the name Realcoin by Bitcoin investor Brock Pierce, entrepreneur Reeve Collins, and software developer Craig Sellers.

USDT was originally issued on the bitcoin protocol through the Omni Layer, but it has since then…