Tether FAQ will tell you about the cryptographic version of the US dollar. Cryptocurrency USD₮ is such a crypto-fiat hybrid, the value of which is connected to the value of one of the fiat currencies.
Let’s consider the current and most frequently asked questions on this issue.
Contents:
- Tether FAQ. What is Tether and how does it work?
- Features of the Tether cryptocurrency
- Security of Tether and places of its implementation
- The limited cryptocurrency and its mining. Answers from Tether FAQ
- Tether storage, its prospects and possible risks. Tether FAQ
1. Tether FAQ. What is Tether and how does it work?
1.1. What is Tether?
Tether — a cryptocurrency token, issued by Tether Limited. The Tether (USDT) rate is connected to the US dollar rate and does not experience such strong fluctuations as the rates of other cryptocurrencies. Tether was originally released on the Omni Layer platform, which is an add-on to the bitcoin blockchain. Tether cryptocurrency is one of the most interesting financial instruments in the cryptocurrency industry. Tether’s main global idea: bypassing the banking system’s restrictions on how to interact with cryptocurrency. Launched in 2014, Tether is a blockchain-enabled platform, designed to make it easier to use fiat currencies digitally. Tether is working to disrupt the traditional financial system through a more modern approach to money. This cryptocurrency has made strides in providing customers with the ability to transact traditional currencies through the blockchain, without the inherent volatility and complexities, associated with digital currencies typically.
1.2. How does the Tether work?
Bindings exist on blockchains, using the Omni protocol and as ERC-20 tokens. These transport protocols are open source software that interacts with blockchains to allow cryptocurrency tokens to be issued and redeemed. Tether platform currencies are 100% backed by Tether reserves. The conversion rate is 1 tether USD₮, equal to 1 USD. Tether was originally created to use the Bitcoin network as a transport protocol, specifically the Omni Layer, to enable transactions with tokenized traditional currency. Since this original version of Tether uses the bitcoin blockchain, it inherits the internal stability and safety of the oldest blockchain network. Tether is currently available, using two different transport protocols (Bitcoin and Ethereum). When users submit tethers to other addresses, they need to check the destination address carefully to make sure it is in the standard Bitcoin or Ethereum format and choose the correct transport protocol.
2. Features of the Tether cryptocurrency
2.1. What real currencies does support the Tether?
Tether initially supports US dollars (USD), Euros (EUR). ₮ Tether platform currencies are designated as USD₮ and EUR₮.
2.2. Who can use Tether cryptocurrency?
Tether allows organizations, including exchanges, wallets, payment systems, financial services and ATMs, to use fiat currencies on blockchains easily. Some of the largest businesses have integrated tethers in the digital currency ecosystem. Individuals can also use USDT-enabled platforms to conduct transactions with them.
2.3. How does the Tether protect you from cryptocurrency volatility?
This is due to the fact that they are connected to real currencies in a one-to-one ratio and are supported by tether reserves. Tether – new assets that move around the blockchain as well as other digital currencies. Tether currency is not money, but digital tokens, formatted to work with blockchains. Tethers keep their value at 1:1 in relation to the underlying assets.
3. Security of Tether and places of its implementation
3.1. How do you find out your Tether cryptocurrency is safe?
Tether cryptocurrency is built on revolutionary and cryptographically safe open blockchain technologies and adheres to strict laws, safety regulations and world governments. As a completely transparent company, it publishes daily records of their bank balances and the value of their reserves. Tethers can be securely stored, sent and received through the blockchain and are redeemable for cash, in accordance with Tether Limited’s terms of service.
3.2. Where can Tether USD₮ be used?
The Tether team wants to make their cryptocurrency usable wherever you can use digital currency and in many places, where digital currencies are currently not accepted.
4. The limited cryptocurrency and its mining. Answers from Tether FAQ
4.1. In which countries and states is Tether limited?
Tether is committed to operating in a safe and transparent manner while complying with all government requirements and regulations. This includes regulations and economic sanctions that prohibit transactions from individuals and entities, associated with certain high risk jurisdictions. Persons, residing in the following locations, are prohibited from using the Tether platform.
Locations, where it is prohibited to use the Tether platform
| Afghanistan | Bosnia and Herzegovina |
| Vanuatu | Iran |
| Yemen | Democratic People’s Republic of Korea (North Korea) |
| Crimea | Cuba |
| Pakistan | Syria |
| Uganda | Ethiopia |
US persons are also prohibited from using the Tether platform unless they are eligible parties to a contract (“ECP”) under US law (the use of cryptocurrencies is restricted in New York and Washington DC.
4.2. Mining of the USD₮ cryptocurrency
Tether cryptocurrency mining is not provided. It is released only by the crypto platform itself and only in exchange for fiat.
5. Tether storage, its prospects and possible risks. Tether FAQ
5.1. Where to store Tether?
Cold wallet. The traditional Ledger Nano S hardware wallet falls into this category – a device that resembles a flash drive.
Hot wallet. It is a service or application that is linked directly to an Internet connection. It includes: mobile wallet, online wallet, desktop wallet, paper wallet, browser wallet.
Tether OMNI can be stored on the official Tether Wallet, can be installed on OMNI CORE PC and on Android, iOS.
Currency can be stored and traded on cryptocurrency platforms such as Binance, Poloniex, Bitfinex, Exmo, Gate.io and many more.
5.2. Tether cryptocurrency prospects and risk prediction
In theory, USDT can be exchanged for dollars at any time on the Tether platform itself. However, the platform rules state that Tether is not money or monetary instruments and Tether Limited is not obliged to exchange its tokens for fiat currencies, nor does it guarantee such an exchange and protection against losses when buying, selling, selling or redeeming Tethers. Some experts believe that in this way the company insures against possible regulatory restrictions in different jurisdictions. However, in the same way, the cryptocurrency may actually lose its real collateral, because it will not be possible to exercise the right to exchange it.
