What is Tether (USDT)?

What is Tether (USDT)? Tether is the third largest cryptocurrency in the world by market value and is traded by the USDT symbol. One important feature that sets Tether apart from other familiar cryptocurrencies, such as Bitcoin, Ethereum and Dogecoin, is the fact that it is a special cryptocurrency called Stablecoin*. This makes it a more reliable and trusted choice unlike the other cryptocurrencies which can be used for speculative investments.

What is Stablecoin?

There are three different types of Stablecoins: Fiat (Commodity) Collateralized, Crypto Collateralized, and unsecured.

Stable Coins with Fiat Coverage

These stablecoins are associated with an asset such as the US dollar, whose value does not change much. Unlike other high-profile cryptocurrencies that are prone to sudden ups and downs, they are seen as a more reliable investment instrument as they try to establish stability with their price and have very little fluctuations. Stablecoins may depend on different types of coverage. Some of them might include precious metals such as gold or silver, as well as commodities such as oil. But today most of the money-backed Stabilcoins use dollar reserves. The goal of stablecoins with fiat coverage like Tether is to build the necessary bridge between currencies and cryptocurrencies and offer investors and users stability, transparency and minimal processing fees. As a sign of transparency, Tether has a section called "Proof of Funds" on its website, in which its resources are publicly shared. Additionally, this