Stablecoins are one of the most reliable crypto assets. Crypto users prefer this kind of asset, especially during a bear market. The reason is not far-fetched. While BTC and Ether are volatile, stablecoins are usually pegged to the value of a fiat currency, especially the US dollar.
Tether USDT is one of the most popular stablecoins that crypto users have used as leverage for their transactions. So, under normal circumstances, it shouldn’t be affected by market volatility. So, there have been some questions about the Tether, how it works, and how it performs compared to other stablecoins. Let’s answer some of these questions.
Which is Better, USDC or USDT?
Despite having a bigger market size and volume, it is interesting to note that most experts do not see USDT as the superior stablecoin. This is due to USDT’s lack of transparency and auditing. Compared to USDT, USDC is more transparent.
In terms of the blockchain and exchange rate, USDC and USDT are also comparable. Individuals who cherish transparency tend to choose USDC, but people seeking liquidity and investing in an asset with a bigger volume prefer Tether.
USDT, USDC, and BUSD make up most of the stablecoin market cap. They are also good choices for those who want to participate in the stablecoin market.
Why USDT Instead of USD?
Tether developed USDT in order to be decentralized, just like cryptocurrencies. So, it is not under the control of a single person or entity. Tether USDT has some advantages over USD. For example, USDT shortens the access duration and access time. Getting USD could involve visiting your bank and wasting time filling out forms, depending on your country. But by using USDT, you can swap your fiat currency for it and complete the transaction in a couple of minutes.
Tether also transcends boundaries, making it more desirable than USD. The stablecoin is a digital currency, so platforms that accept crypto tend to accept USDT. While USD is restricted to nations where it is legal tender, such as the USA, Tether has a considerably greater international reach.
Who Uses USDT?
Tether is popular for several reasons. Some of the users fall into any of the following categories:
- Users hoping to change their money to dollars
- Crypto traders seeking to trade with lower fees.
- Traders looking for ways to sell their coins
- Foreign investors and users who do not own American bank accounts.
- People are trying to send dollars outside their countries but without banks.
— Tether (@Tether_to) October 28, 2022
Who Controls USDT?
USDT is pegged to the U.S. dollar. According to the platform’s website, the stablecoin is backed 100% by Tether’s reserves. Tether is controlled by iFinex, the company that also owns the crypto trading platform, BitFinex. So, if you are looking at getting a stablecoin, then Tether is obviously a good buy.
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