Surely every user who has already dealt with cryptocurrencies has encountered USDT. Nevertheless, this coin has its own peculiarities in an application, which should be known before making transactions with it.
The USDT coin still maintains a leading position in terms of the trading volume. Hundreds of crypto assets are traded in pairs with USDT. You can find it on almost every cryptocurrency exchange since now it’s possible to buy usdt with credit card, electronic wallet, and other cryptocurrencies (on the stock exchange, for example).
Description and Characteristics of the Coin
Stablecoin is a special kind of crypto that has real reinforcement in the form of assets. This solves the problem of volatility, which is typical for the digital currency market because the rate of such coins is more stable. This is an important feature of the coin since most cryptocurrencies are unsecured.
The company behind the development has issued several types of tokens equal to different basic units of fiat or precious metal:
- USDT, — pegged to the US dollar exchange rate;
- EURt for Euro;
- YFTether for the Japanese yen;
- XAUt equal to one troy ounce.
Unlike conventional cryptocurrencies, stablecoin is provided with fiat currencies that can be traded on exchanges. In addition, they are considered a reliable means of saving during an unstable economic situation.
Stablecoins make it possible to use the advantages of tokenized currencies, including security, confidentiality, low fees, and transparency, while they help alleviate the problem of volatility. New competing stable tokens may take an even larger share of the stablecoin market.
The Principle of Operation
The main functionality of the platform is to provide convenient fast transactions by converting fiat currencies into their stable digital counterpart. Here’s how the system works:
- the user creates and verifies an account in Tether Limited, – the client needs to choose the type of account (“Corporate” or “Personal”), enter the name, surname, country of residence, and then fill out the “Know Your Customer” (KYC) form and pass verification;
- the user opens the “Deposit” tab and replenishes the account of Tether Limited in fiat;
- the system generates and charges tokens to the investor in a ratio of 1 to 1 ($10 = 10 ₮ USD);
- to get the fiat back, the holder sends tokens to the company’s account;
- the company destroys them and sends dollars to the user.
An investor can order payment to a bank card. If you do this directly through the platform, you will need to pay a commission. Minimum withdrawal amount in fiat: $100 thousand. Such conditions within the system are caused by the need to maintain the solvency of the project.