Cryptocurrency Tether (USDT) Review and Explanation

Cryptocurrency Tether (USDT) Review and Explanation

Today we will not talk about the next ordinary cryptocurrency, it’s gonna be a special one. Tether is a cryptographic version of the US dollar or “stablecoin”. Tether’s uniqueness is in its pricing.

Unlike most coins, the value of USDT does not depend on how often the coin is bought and sold. Tether also does not feel the general market decline. While all cryptocurrencies experience daily fluctuations, USDT coin stays strong stablecoin.

The rights to the cryptocurrency belong to the Tether Limited organization, which is the creator of this coin. By the time Tether was created, the company had already created its unsuccessful project, Realcoin cryptocurrency. Tether coin started trading in February 2015.

Tether uses the same blockchain as Bitcoin (and the same encryption algorithm SHA-256). The distinction in blockchains is a special part of Tether protocol that is called Omni Layer. This structure makes Tether (USDT) cryptocurrency open-sourced.

How exactly Tether blockchain works and what is Tether (USDT) crypto coin? Let’s discover it with Changelly!

Tether (USDT) Value

Tether coin is always worth $1, and it can be redeemable for $1 of fiat currency. However, this stability applies only to the US dollar. In the case of Bitcoin, the course often sags. There have been deviations in the history of USDT cryptocurrency, but they were no more than $0.08.

USDT all time lows

The main aim of Tether is liquidity and hedging provision as opposed to market volatility. USDT is pegged to fiat currency, so its value is protected. That’s why stablecoin is not as risky as ordinary cryptocurrencies.

Even though the Tether is always valued at $1, the coin had a historical maximum and minimum. USDT token is trading on a wide range of crypto exchanges, where the price of one coin depends on market supply and demand. The cryptocurrency is also pegged to the Euro and the Japanese yen.

Now Tether is on the 6th place among cryptocurrencies rate by market capitalization. The market cap of the cryptocurrency is $3,915,819,240. The price of one token is obviously $1 and 0.00009750 BTC.

The all-time high price was tested on May 27, 2017, 一 $1.21.
The all-time low price was on February 2, 2017, 一 $0.849809.

Tether (USDT) Blockchain Review

The Tether network is built within three layers. The first layer is the Bitcoin blockchain and the Tether transaction system, the Omni protocol. At the second level, the Omni protocol itself is located. This technology allows you to create and destroy a cryptocurrency, track and report the circulation, transact and store USDT and fiat in a peer-to-peer, pseudo-anonymous, crypto secure environment.

The third level is occupied directly by Tether Limited. The company is responsible for accepting fiat currencies from users and issuing cryptocurrencies instead and maintaining reserves. Moreover, Tether Limited makes decisions and integrates cryptocurrency on various exchanges, wallets, other projects, etc.

Tether Limited

The network uses Proof-of-Reserves protocol. It means that all the USDT cryptocurrency, which is in circulation, secured by fiat currency. If the entire amount of fiat currency converges with the amount of cryptocurrency, the Proof of Reserves has been observed. Mining cryptocurrency Tether is not provided. It is released only by the crypto platform itself, and only in exchange for fiat money.

Let’s sum up some technical points about Tether (USDT) cryptocurrency: 

  • The total supply of the token is 4,220,057,493 USDT.
  • The first part of USDT cryptocurrency has been released on March 12, 2017.
  • Tether blockchain uses SHA-256 encryption algorithm.
  • Omni transactions are recorded sharing the same Bitcoin transaction hash.

To explore more technical information, please, check out Tether White paper.

Alternative Stablecoins

There are several stablecoin alternatives backed in US dollars:

CoinCurr. Market capCreated by
USD (USDC)$383,544,057Coinbase & Circle, San Francisco
Gemini Dollar (GUSD)$9,084,319Gemini Trust Company LLC, New York
Paxos Standard Token (PAX)$162,912,883Paxos, New York
TrueUSD (TUSD)$218,079,823TrueCoin LLC, San Francisco
Maker’s Dai (DAI)$580,307,887Maker Ecosystem Growth Holdings, Inc., Cayman Islands
Tether (USDT)$3,929,144,067Tether Limited, Hong Kong

As you can see, Tether is still the leader.

Tether Roadmap

There is no proper Tether roadmap, but the company has some plans and integrations with parts of cryptocurrency association. The team shares only the latest updates made with Tether cryptocurrency. Some of these points are reflected in the following list:

  • Tether is planning to add more supported fiat currencies. These are JPY (which has already been added) and GBP.
  • Tether integrates with various blockchains. Now it is available on Ethereum, EOS, Litecoin and Tron.

Poloniex supported Paolo:

Read latest Tether announcements on this page and find out more.

Tether (USDT) Wallets

For storage of USDT, you can use quite a wide range of wallets: hot and cold. Because of compatibility with Ethereum, Litecoin, and Trezor, the range of wallets increases. Let’s dig into the variety!

  • MyEtherWallet. This is a web browser wallet which can even be a Chrome extension.
  • Omni Wallet. This is an original Tether wallet which takes control over users’ private keys. This possibility makes the wallet extremely safe.
  • Tether Wallet. This is an official Tether wallet but it has some issues. The wallets were hacked in 2017, intruders have stolen 31 million USDT. Not the best wallet to keep your savings.
  • Coinomi. This mobile wallet enables you to keep money on your Android or iOS. It is user-friendly and safe for your assets.
  • Exodus Wallet. This is a desktop wallet which allows keeping the best-known cryptocurrencies: Bitcoin, Ethereum, Dash, Litecoin, and of course Tether.
  • Ledger Nano S. If you require more privacy and safety, use the Ledger cold wallet. It costs some money but definitely worth it.

Where to trade Tether (USDT)?

It’s easy to exchange USDT coin due to a significant number of platforms accepting this cryptocurrency.


Buy Tether (USDT) at Changelly

Changelly platform offers you a way to buy USDT with your banking card swiftly, safely, and with minimal authentication procedure. The fiat payment process is powered by our partner Indacoin and takes just a few simple steps to take.

Buy Tether

The purchase option is open both via our website and the Exchange Widget that can be found at our partners’ resources.

Tether Summary

Tether is definitely the best-known and the most popular stablecoin. USDT coin is provided with stability, transparency and minimal transaction fee. Moreover, about 80% of all Bitcoin assets are being traded in Tether cryptocurrency.

Tether cryptocurrency has a controversial reputation in the blockchain world. USDT token is centralized, requires permission to use and depends on the trust of users in some organization, which is contrary to the principles on which Bitcoin is based.

Perhaps the campaign against Tether will bring some benefit. Criticism can push the system to raise professional standards and get rid it of its weak points.

Disclaimer: This article about Tether (USDT) should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Credit: Changelly

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