[Crypto] What is USDT? Definition Stablecoin

Now cryptocurrency coin traders can pawn their digital assets to invest in stablecoins such as USDT and DAI. What is USDT? A lot of people out there think that USDT is like a cryptocurrency like Bitcoin and the like, but that's actually wrong.

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Things that we will discuss:

Know the Definition of Stablecoin
What is USDT Tether?

Definition of Stablecoin

Before we start it would be nice to know stablecoin first.

In the crypto world, we often hear the name stablecoin. The meaning of stablecoin itself is a crypto currency whose price value is equal to the fiat currency that it refers to. For example, fiat currency US$ is equal in price with USDT price comparison and its value is 1:1.

Come to think of it very complicated to exchange safely and quickly the US dollar and similar fiat currencies from place A to place B.

It's possible that you'd think you could move fiat currency through a bank. However, it will be hit with a large tax charge when transferring fiat currency.

This is the reason why stablecoins exist, helping people meet remittances quickly and securely in real time.

Stablecoins such as USDT and DAI were created to resemble the 180 fiat currencies available. To help the community in terms of money transfer.

What is USDT or Tether?

Tether is one of the stablecoins that has been around since 2014 on the Ethereum blockchain with the same asset value price comparing 1:1 to US$ value.

Tether is not a coin but a token. The reason is tether stands on the blockchain platform of others. The meaning is different from Bitcoin is in its own blockchain, namely the Bitcoin blockchain.

USDT or Tether Products are not like BitCoins that can be invested because they are the same price as fiat currency values. In contrast to BitCoin whose coin value price is always volatile in the sense that prices always change quickly which is usually utilized by investors with capital gain techniques.

Stablecoins like Tether aim to reduce cryptocurrency price movements that are difficult to use as payments.

Users use USDT (Tether) function to conduct transactions on crypto exchanges because it has a stable value.

The drawback of using USDT (Tether) is the case of remittance depends on interbank transfers and different banks abroad, only certain countries use dollars.

Gas is also charged from using USDT (Tether) if the USDT transfer to another Crypto Wallet.

Read : Below is an Article about the Most Complete Crypto Dictionarie

Conclusion :

Because the US dollar is a well-known currency as a price benchmark. If using bank services it will take a long time and tax and high, therefore USDT Tether exists to facilitate transactions.