Investors were wary about participating in the crazy crypto world due to its extreme swings but Tether has managed to fill the gap. In 2014, Tether introduced USDT [USD Tether], whose value is pegged with the less volatile fiat currency US Dollar. Creators claim that this stablecoin is supported by a 1:1 ratio of fiat currency to the USD.
Currently, USDT is the third-largest crypto in the world. In 2019, USDT’s market cap was $5 billion but in December 2021 there was a revolution in market capitalization, which hit $167 billion. The crypto market economy is $2.47 trillion, out of which stablecoins represent 6.68%. In 2021, stablecoin has recorded a massive growth of 388%.
The one coin in your Tether wallet is equivalent to $1 and the exchange keeps USD reserves to support every USD Tether in existence. Blockchain confirms the total number of Tether tokens or USDT in circulation. The amount has to be equivalent to the amount in Tether Ltd.’s bank account.
Tether claims that USDT is used to hold more than $60 billion, so investors need not feel worried about liquidity. Users can deposit USDT as collateral for participating in Defi without any worries about volatility management. Defi or Decentralized Finance uses smart contracts on the blockchain system.
If you are interested in USDT investments, then check out the benefits below.
Stability is its goal but there is a slew of benefits to experience. Many people feel that as it is pegged with USD, it is the most practical mode for crypto to enter the mainstream.
Stability & security
Investors looking for low-risk exposure to cryptocurrency can switch to USDT investment rather than entering the highly volatile market. USDT operates on blockchain networks including Algorand, Ethereum, OMG Network, Tron, and EOS. It conducts regular audits to ensure that code stays updated and sufficiently secure. It is proactive to ensure that the current framework complies with the KYC and AML guidelines.
Cheap & speedy transactions
When a traditional bank wire transfer is conducted it takes more than 3 to 4 days and during weekends there are delays. Alternatively, USDT transactions are speedy. It is a good feature for investors whose profits can disappear if transfers are delayed. The transfers are concluded within minutes instead of several days.
USDT transfer is even more appealing because the transaction fees are significantly lower than bank wire transfers. Besides, there is also the concern about currency exchange if the exchange does not support it. In cryptocurrency transfer, the investor doesn’t pay fees on transfers within USDT wallets.
Protects against inflation
For example, in countries with high inflation or weak currency, the investor can invest in USDT to preserve currency value because its value is pegged to the US dollar. They can redeem the USDT even during high inflation at $1.
Even if you can store USDT in myriads of wallets, there is a need to be cautious. With the Zengo wallet, users can connect to DeFi Dapps, and NFT as well as buy and sell crypto. It is a keyless wallet using advanced security layers; visit their website to check it out!