Have you ever heard of Tether? It’s a digital currency that is gaining in popularity, but what is it exactly? In this crypto article, we will explain what Tether is, how it works and why it may be a good investment option for you. Read on to learn more!
Tether is a cryptocurrency that is linked to the value of other cryptocurrencies, fiat money, or commodities like gold. A stablecoin is a cryptocurrency whose value does not fluctuate wildly, as many regular cryptocurrencies do; instead, it is linked to another currency, such as US dollars or gold bullion.
There are five Tether crypto tokens currently, these are:
- USDT
- EURT
- MXNT
- CNHT
- XAUT.
Cryptocurrency prices are vulnerable to market speculation, and they have a well-known propensity to fluctuate. One of the primary reasons for the slow adoption of cryptocurrencies by many people has been the volatility in their values. Tether became popular as a means to bridge the volatile nature of cryptocurrency with real-world currency when it was introduced.
Tether combined the best of two worlds, the stability of fiat currencies and the neutrality of the blockchain technology, by pegging the value of a Tether token to USD and operating it over a blockchain.
Tether was the first stablecoin, but after its success, various other companies decided to launch their own versions of a digital currency that is based on blockchain technology and doesn’t fluctuate with the market.
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