Everyone’s heard of USDT, right? It looks like USD, but with a “T” at the end… What does that mean, what is USDT? Well, we’re talking about Tether, one of the most widely used cryptocurrencies in the world!
If bitcoin is considered “digital gold” or “digital cash”, USDT is more like the equivalent of a digital dollar, a stablecoin created to maintain a stable value. But how does it work? Why is it so popular with investors and traders? In this article, we’ll discover what USDT is, how it works and why it’s an essential element in the crypto ecosystem.
If you want to buy or sell USDT, the Abarai platform makes it simple. Not only can you trade USDT, but you also have the option to swap with other cryptocurrencies.
What is USDT?
USDT, also known as Tether, is a type of cryptocurrency that is called a stablecoin. Its value is closely pegged to the US dollar, meaning that each unit of USDT is intended to be equivalent to one dollar. This allows you to trade without being affected by the large price fluctuations sometimes seen with other cryptocurrencies.
For example, while the price of Bitcoin can change by 10% or more in a single day, the USDT price remains relatively stable, making it ideal for traders or investors looking to protect their capital.
How does Tether work?
Tether works by linking dollars to USDT. The company that issues Tether claims that for every USDT in existence, there is a US dollar in reserve. This means users have a sense of security, knowing that their currency is hedged.
USDT transactions are carried out using blockchain technology. This allows for fast and secure transfers. For example, if you send USDT to a friend, the transaction is usually completed within seconds with no processing delays.
Why use USDT?
There are many reasons why users choose Tether. Here are some concrete reasons:
- Stability: USDT is less volatile due to its tether to the US dollar, making it a safe choice in times of market instability.
- Ease of use: It’s available on most exchange platforms, so anyone can get started quickly.
- Versatility: Use USDT not only for trading, but also to invest or participate in DeFi activities such as lending or yield farming. About 70% of all cryptocurrency transactions take place in USDT, demonstrating its popularity. practical example of use:
- If you use a custodial platform like Kraken, then every time you want to work with USD countervalue, you can buy USDT. Exchange costs between a cryptocurrency and USDT are lower than cryptocurrency and USD or EUR.
- Can you withdraw USDT to your bank account? NO! USDT is a cryptocurrency not fiat.
How to buy or sell USDT on the Abara platform
To start using USDT on the Abara platform, follow these simple steps:
- Visit our website and enter the amount you want to spend on Tether. It’s quick and only takes a few seconds.
- Choose a means of payment: You can link a bank account or credit card to make transactions with ease.
- Buy USDT: Tell us where to send USDT. Simply choose the amount you wish to purchase and finalize the transaction.
- Sell USDT: If you want to sell USDT, simply choose the amount you want and finalize the sale.
Swap with other cryptocurrencies
Besides buying and selling USDT, the Abara platform allows you to swap USDT with other cryptocurrencies. The procedure is simple:
- Choose the desired cryptocurrency: If you have USDT and want to swap with another type of cryptocurrency, choose the desired currency.
- Determine the amount: Indicate how much USDT you want to convert.
- Finalize the swap: Once you’ve confirmed, the transaction will complete quickly. This is an efficient way to diversify your portfolio without withdrawing fiat money.
Safety and stability of USDT
Security is a key aspect of Tether. The company provides transparency through regular reporting on its reserves, assuring users that every USDT is backed by real funds. For example, in 2023, Tether published a report showing that 82% of the reserve is in cash and cash equivalents, demonstrating a high level of security.
It is important, however, to be aware of the risks in the cryptocurrency market. Even though USDT is more stable than many other cryptocurrencies, it is essential to do your research and make informed decisions.
TOTUSI. A lot of people don’t trust the fact that the folks at Tether have one USD for every USDT issued. The company is not registered in the US and does not fall directly under the SEC (Securities and Exchange Commission)
In short
USDT, or Tether, is a great choice for beginners who want to explore cryptocurrencies without the risks of volatility. Its peg to the US dollar brings stability and flexibility to users.
At Abarai, you can buy and sell USDT without hassle, and the option to swap with other cryptocurrencies allows you to quickly diversify your investments. This platform offers a safe and friendly environment, perfect for anyone looking to venture into the world of cryptocurrencies.
If you have any questions or want to get started with USDT, feel free to contact us on the Abara platform!