what is the role of Tether dollar in crypto market

• Published 2 Year Ago
• DHS Blog

What is the history of the Tether dollar?
Tether dollar is a cryptocurrency that protects your assets from severe crypto market fluctuations at a fixed price. The abbreviation for this currency is USDT and you can use it to digitally transfer dollars.
This currency was introduced in November 2014 by iFinex, the owner of the Bitfinex digital currency exchange.
Tether is a Stable Coin that is protected from fluctuations in the cryptocurrency market. This currency is used as a tool to control price fluctuations in cryptocurrency transactions.

Tether is backed by Fiat currencies (including the dollar, euro, and yen). Therefore, its value increases or decreases depending on the price of the currency it supports.
IFinex always keeps the US dollar (or other common currencies such as the euro) as much as Tether circulating tokens in the blockchain. This financial support has kept the value of Tether almost constant.

The USDT is a dollar-backed Tether token, valued at approximately $ 1. USDT is the most widely used of the other Tether tokens. The USDT is the digital dollar that acts as an alternative to the dollar in exchange offices.
IFinex has also launched the EURT token based on the euro, which is worth € 1. It also offers Tether Gold digital currency with the XAUT symbol, which is backed by gold.

How to distribute Tether dollar currency?
For every Tether dollar unit produced, 1 dollar is held in bank reserves, which acts as the support of this digital currency. This currency support helps keep the price always at $ 1. So unlike most digital currencies, the supply of Tether is not limited. New USDT units are produced and supplied according to market demand.

The Tether dollar currency was initially distributed on the Omni layer, which is the platform of the Bitcoin blockchain. But now it also offers blockchains such as Ethereum, Bitcoin Cash, Tether, and Algorand. Tether is now very easy to access and can be stored in the official wallets of Ethereum, Bitcoin Cash, Tether, and Algorand.

Tether units are manufactured by IFinex according to market needs and in different periods and are imported to Bitfinx exchange. Then they go to other exchanges by traders. Therefore, USDT transactions are decentralized and are performed on large blockchains. But the distribution of its units is quite centralized. As a result, Tether is not a decentralized digital currency.



What are the most important features of Tether?
Important features of Tether can be categorized as follows:
The price of a Tether dollar is about the same as the US $ 1. But sometimes very little fluctuation occurs in the price of this currency. For example, sometimes the price changes to 0.98 or 1.02 US dollars, which is due to the supply and demand of this crypto.

Tether is financially supported. IFinex has announced that the currency is backed by Fiat currencies and cash reserves.
Its system is financially transparent. Information about Tether-backed currencies can be viewed and tracked online and instantly. All transactions in Blockchain are also available using existing tools, including websites such as Etherscan.
The foundation of Tether is based on Blockchain technology. Therefore, the security of its money transfer is guaranteed because the blockchain ensures its security.

The Tether can easily be converted into Fiat currencies in crypto exchanges.
Due to Tether dollar capabilities, customers can refer to a crypto exchange site to purchase Tether. The Dubai-based DHS Exchange offers easy exchange through its DHS.market website. Customers of this exchange can easily convert USDT to Dirham. Users can buy Tether by exchanging different cryptocurrencies through international exchanges that support USDT. Then save this currency in their wallet and trade USDT to Dirham through the DHS.market website.